offers in compromise

[pooh319]

After not filing both state and federal income taxes for several years, I recently filed. The time period was from 1996-1999. During that period my wife (now ex-wife) filed married filing seperately. The divorce became final in 3/2000, and I remarried later that same month. My question is: Will my new wifes assets and income be used in determining my ability to pay in an offer in compromise? My name is not attached to any of her accounts, belongings, or real estate titles. If I choose to file bankruptcy, will that filing affect her credit in any way? What impact will this have on any future tax refunds that may be due to us? Thanks for your help.

 

[loku]

Wife's assets

If you are contemplating an offer in compromise, I would suggest you download IRS Form 656 Offer in Compromise. It has the forms and instructions you need.

As for your spouse's liability, when only one spouse has a tax liability but both have incomes, only the spouse responsible for the debt is required to prepare the necessary financial statements. In states with community property laws, however, the IRS requires financial statements from both spouses. The may also request financial information of the non-liable spouse for offer verification purposes, even when community property laws do not apply.