Back fed tax problem

What is the name of your state? Arizona. I cross posted this in the bankruptcy board but perhaps I can get a more definitive answer here. I incurred federal tax liabilities for the years '92,'94,'97 and '98 when I was single. I married in '99 and have this monster liability hanging over me. My questions to you is: As far as the IRS is concerned are those liabilities still mine seperately or since we now file joint returns do the liabilities belong to both of us? If I were to file an OIC or even apply for a payment plan would only my wages be concidered or both of our wages?

The IRS can take both your refunds to pay your debts. If you file an OIC, they will consider all income. Talk to a tax attorney ASAP about helping you prepare an OIC.

The liabilities are yours and not your spouse's; however, if you file a joint return, the IRS could take the refund and apply it to your debt.

Your spouse needs to file a form called "Innocent Spouse Relief" so that he/she will get her portion of any tax return. However, your spouse must have some kind of income to do this.

You can find the form and info on it at the IRS website.

Innocent spouse does not apply. Injured spouse is the correct form. Howver, since AZ is a community property state, the IRS can take community property to satisfy separate debts.

We position ourselves tax-wise to insure we get no refund, so this is not an issue. My main concern is: Can and will the IRS consider my wife's income in determining how much we can pay in an OIC or payment plan?

Can and will the IRS consider my wife's income in determining how much we can pay in an OIC or payment plan?

Yes they can and will. They base their calculations on your income and your spouse's.