Can the IRS take any of my husband's severance pay or use it to decide what I can pay on back taxes?

[hopeandme]

What is the name of your state? Maryland

My husband isn't liable for my tax debt. I'm on disability and do work but very little (12 hours a week at most). The whole reason I owe is that I was paying specialists to try and get well and thought I could catch up when I did but then never got well. I was on not collectable status but was just taken off and they want another 433-F (financial form) which requires that I put my husband's income and assets down too. He was laid off in July and received quite a bit of severance. He has since got a new position but paying less. Can they ask for some of his severance to pay off my debt or use that in any way to determine what I can pay? Thanks so very much!

 

[Zigner]

What is the name of your state? Maryland

My husband isn't liable for my tax debt.

Why do you say that?

 

[hopeandme]

We filed married filing separate for the years in which I owe and my accountant as well as the IRS has told me that he isn't liable due to this. Thanks for asking and please let me know if you have any insight.

 

[Ohiogal]

Do you have joint bank accounts?

 

[hopeandme]

We do not but on the 433-F (financial sheet) that I have to fill out you have to include your spouse's checking and savings information. You have to include their income as well because he contributes to the household. Some how they calculate what I can afford to pay based on the household income and assets. If you can assist me further I'd greatly appreciate it!

 

[Taxing Matters]

What is the name of your state? Maryland
Can they ask for some of his severance to pay off my debt or use that in any way to determine what I can pay? Thanks so very much!

The IRS could ASK for whatever it wants. But the IRS could not levy (forcibly take) assets that are solely your husband's assets to pay the tax liability that you owe. And in practice the IRS would not ask your husband to turn over his separate assets to pay your tax liability. But the IRS will require that you provide the financial information for both of you on the Form 433A or 433F because it is important to get the picture of the total household financial information in order to figure out what your ability to pay the liability is.

 

[hopeandme]

The IRS could ASK for whatever it wants. But the IRS could not levy (forcibly take) assets that are solely your husband's assets to pay the tax liability that you owe. And in practice the IRS would not ask your husband to turn over his separate assets to pay your tax liability. But the IRS will require that you provide the financial information for both of you on the Form 433A or 433F because it is important to get the picture of the total household financial information in order to figure out what your ability to pay the liability is.

Thank you so much! His severance is desperately needed to pay for Cobra, my medical expenses, end of year taxes that we expect to owe and to supplement our income because he is making less at his new job.

 

[Taxing Matters]

Thank you so much! His severance is desperately needed to pay for Cobra, my medical expenses, end of year taxes that we expect to owe and to supplement our income because he is making less at his new job.

Those are all things the IRS would regard as necessary living expenses and would be allowed by the IRS in figuring what (if anything) you could pay on an installment agreement towards your liability.