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Offer in Compromise?

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    Offer in Compromise?

    Clients are "finally" getting ready to make an offer to the IRS. They owe a massive amount and have little to zero in assets so it'll be relatively easy.

    Problem is, they are in the process of getting a divorce. Should they make a joint offer or make separate offers? In their opinion, they'll be officially divorced BEFORE the IRS accepts an offer. innocent spouse is not a relevant issue.

    #2
    unless you want to go through the calculations to determine percentage owed by each and, if, your clients agree to both being responsible for the entire amount, I would submit it jointly as it was reported on MFJ returns.
    If the IRS does not accept it then you can revisit the issue of OIC separately.
    Believe nothing you have not personally researched and verified.

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      #3
      Originally posted by taxea View Post
      unless you want to go through the calculations to determine percentage owed by each and, if, your clients agree to both being responsible for the entire amount, I would submit it jointly as it was reported on MFJ returns.
      If the IRS does not accept it then you can revisit the issue of OIC separately.
      That's what I was thinking. I'm not splitting it up. Technically the income that didn't get taxed was her self employment income but he spent the money and knew they weren't paying the tax. They are both paying me and planned on it being done jointly.

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        #4
        as long as everyone is in agreement and it will be filed for a year they were married you don't have a problem.
        Believe nothing you have not personally researched and verified.

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