Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I have some questions about filling out an Offer in

Hi Pearl, I have...

Hi Pearl, I have some questions about filling out an Offer in Compromise. Is that something you can help with?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Great. I think I was just chatting with you on my phone. I just switched to my computer. I'll retype my questions here.

Accountant's Assistant: Is there anything else important you think the Accountant should know?

I have a back tax liability for years 2013-2016 for around $36K. I am married, but we file separately. We got married in 2016. We are trying to figure out how to fill out the form with a non-liable spouse. We've seen guidance on prorating, but no specific instructions. We are just not sure how to fill in income and expenses, given that we file separately.

Show More
Show Less
Ask Your Own Tax Question
Answered in 2 minutes by:
1/21/2018
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,007
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Do you need help with Form 8379 (Injured Spouse)?

What state do you reside in?

Ask Your Own Tax Question
Customer reply replied 4 months ago
Hi Barbara, no I don't need help with Form 3279. We live in Maryland. Here’s our situation:
Back tax liability for years 2013-2016. Married in 2016. We file separately and my wife and I do not have any joint tax liability.
Everything we’ve read online says that the non-liable spouse’s income is not taken into account in determining the OIC, but the 433A asks for her income (line 32). Should we include her total monthly income at all?
If we don’t include her income, do we just prorate our shared expenses? For instance, if my income is 44% of our total combined income, so I just multiply our shared expenses by that amount?

I understand.

You are making the OIC for your own tax liability?

Ask Your Own Tax Question
Customer reply replied 4 months ago
it is for my own tax liability.

You would include the total income and total expenses.

Please know that OICs are very difficult to obtain if the IRS feels the tax debt can be paid. The IRS will only approve the OIC if it believes there is no way it can collect the full amount that is owed.

The better alternative would have been to file as MFJ when you got married and use Form 8379 for your wife as the injured spouse. This way, she would have received her portion of the refund, and your portion would have used to pay down the debt.

Married filing separate is the least advantage filing status.

Did you use the OIC prequalifier on the IRS website to determine if you do qualify?

Ask Your Own Tax Question
Customer reply replied 4 months ago
Thanks for the feedback - that is something we will look into. When I use the prequalifier with my income and my prorated portion of the expenses, I qualify. If I include her income as well as mine and our total expenses, I don't qualify. I'm a bit confused as the IRS says it doesn't consider the income of a non-liable spouse, but rather the remaining funds left after considering the prorated percentage of expenses based how much my income contributes to our total household income.

That's correct. It is YOUR total income and expenses. I apologize if I was not clear.

The IRS will also look at jointly owned assets.

Ask Your Own Tax Question
Customer reply replied 4 months ago
OK, so then I don't include her income on the OIC? It is just confusing given the item#32 on the 433A asks for her income.

It's just the way the form is drawn up. It takes into account if both of you had the tax liability.

Ask Your Own Tax Question
Customer reply replied 4 months ago
OK, I think that makes sense. So, just to confirm. I would submit the OIC with just my gross income and my expenses. My expenses would be any of those that are solely mine and a prorated percentage of our shared expenses. Our prorated shared expenses would be the total shared expense multiplied by the percentage my income contributes to our total income, which in our case is 44%. Is that all correct?

Actually, Line 32 clearly states to include the income of the non-liable spouse.

Is this the form you are using: https://www.irs.gov/pub/irs-pdf/f656b.pdf

Ask Your Own Tax Question

You will include your wife's income on Line 32 and you will use the total of the household expenses. No proration is necessary.

Ask Your Own Tax Question
Customer reply replied 4 months ago
that is the form I am using.

Then, you include your wife's income on that line.

And as I mentioned, you will include the total household expenses.

Ask Your Own Tax Question
Customer reply replied 4 months ago
But then the OIC is taking into account my wife's income in the OIC, which I thought it wasn't supposed to do since she isn't liable?

She isn't liable, but for information purposes, the IRS wants to know the total household income in order for them to consider the OIC.

Ask Your Own Tax Question

That is what I initially meant when I said an OIC is very difficult to get approved. The IRS will only approve it if they feel there is no way to collect the full tax liability.

Ask Your Own Tax Question
Customer reply replied 4 months ago
But it includes her income in the calculation of remaining monthly income then? Essentially, the IRS is assuming it can pull from my wife's income to pay back my tax liability, even though she isn't liable?

No. The IRS is not assuming that it can take part of your wife's income to pay your debt, but it is considering the fact that there is other income in the household besides yours.

Ask Your Own Tax Question

The bot***** *****ne is the IRS wants their money, and if they believe that the full debt can be paid, they will not approve the OIC.

It would be better amending your prior year returns to MFJ and use Form 8379 for your wife.

Ask Your Own Tax Question

Using Form 8379 puts the IRS on notice that your wife is NOT responsible for any of your tax liability even though you are filing MFJ.

Ask Your Own Tax Question
Customer reply replied 4 months ago
OK, so it sounds as though in the future we might want to consider MFJ and a form 8379. We only got married in late 2016, so the back tax liability wouldn't be changed much by amending past returns.
Customer reply replied 4 months ago
As far as the OIC, it sounds like it just might not work for us.

I would definitely amend 2016 to MFJ and use Form 8379. File 2017 as MFJ and use Form 8379.

MFS is the LEAST ADVANTAGEOUS filing status.

I do not believe the IRS will approve the OIC, but at least you have another alternative to repay your tax liability and keep your wife out of it.

Ask Your Own Tax Question
Customer reply replied 4 months ago
Given that I had this tax liability and my wife owns a house in her name only, we were trying to make sure that the house was protected. Would that be the case with the MFJ and form 8379?

Yes. If the house is in her name only, using MFJ and Form 8379 will continue to protect her house.

Ask Your Own Tax Question
Customer reply replied 4 months ago
OK, thanks for all of the info Barbara. This has been helpful.

My pleasure.

Let me know if you need more help on this.

My goal is to provide you with excellent service. Please take a moment to rate my answer with a 5-star rating to let me know that I have achieved my goal.

Thank you.

Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,007
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified
Barbara and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 4 months ago
Will do. Thanks again, have a great night.

You're welcome.

Enjoy what's left of the weekend!

Ask Your Own Tax Question
Was this answer helpful?
Ask Barbara Your Own Question
Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,007
6,007 Satisfied Customers
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.

Barbara is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
VA form asks for adjusted gross income (disability form). We
VA form asks for adjusted gross income (disability form). We file joint; can we separate his income from mine for the form? How? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
If there is no federal tax liability in 2016 because there
If there is no federal tax liability in 2016 because there was no income in 2016, what is the minimum estimated tax that needs to be sent with the extension for 2017 to avoid a penalty?… read more
abci168
abci168
Principal
27 satisfied customers
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
On form 1040 line4 21 other income. is this where i should
on form 1040 line4 21 other income . is this where i should enter an amount shown from my pensiopn payments form 1099R … read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
108 satisfied customers
I am 77 and unmarried, no children. My gross income is
I am 77 and unmarried, no children. My gross income is $3500. I understand that this means I do not need to file. Do I have to do anything? … read more
abci168
abci168
Principal
27 satisfied customers
Filing a NR Canadian income on a US Federal 1040. Which form
Filing a NR Canadian income on a US Federal 1040. Which form is used to report this foreign income? only Box 16 reports income with numeral code 46 in box 14 and in box 15 is CAD. … read more
Mike-USACPA
Mike-USACPA
9 satisfied customers
On line 17, Form 1120 ,C Corp Federal Tax return are state
On line 17, Form 1120 ,C Corp Federal Tax return are state corporate income taxes deductible.If I am doing my Federal C Corp returns for 2017 are the state corporate income taxes due but not paid yet … read more
Barbara
Barbara
Enrolled Agent
6,007 satisfied customers
Using the 7.5% of gross income for out of pocket medical
using the 7.5% of gross income for out of pocket medical expenses, can I use any part of my assisted living rent? … read more
Barbara
Barbara
Enrolled Agent
6,007 satisfied customers
Adjusted gross income of 79084, single, over 65. How much is
adjusted gross income of 79084, single, over 65. How much is my tax … read more
Barbara
Barbara
Enrolled Agent
6,007 satisfied customers
Finally filing 2016 income tax returns. Filing as "married
Finally filing 2016 income tax returns. Filing as "married filing separate return". Did not live with spouse at all in 2016. What is she on my return: an exemption? a dependent? an alimony expense onl… read more
abci168
abci168
Principal
27 satisfied customers
Paid taxes on gross income claimed 2dependens 2017 did a
Paid taxes on gross income claimed 2dependens 2017 did a refi mortgage … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I am on SSI and have no other income, go I need to file a
I am on SSI and have no other income , go I need to file a tax return? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I have a tax liability with the State of Wisconsin. Can the
I have a tax liability with the State of Wisconsin. … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I am single and age 89.Gross income is 16,884.00 .received
I am single and age 89.Gross income is 16,884.00 .received fina distribution in a SEP ira I the amount of $117.35. Must I file??? Also, is there an age when someone o … read more
abci168
abci168
Principal
27 satisfied customers
If a resident US citizen has zero earnings or other income
If a resident US citizen has zero earnings or other income for a few years; are they exempt from any requirement to file a tax return during those years? If that same person chooses to sell off artwor… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I NEED MY 2016 ADJUSTED GROSS INCOME. I NEED GROSS INCOME TO
I NEED MY 2016 ADJUSTED GROSS INCOME JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: I NEED GROSS INCOME TO FILE 2017 TAXS JA: Is there anything else … read more
Barbara
Barbara
Enrolled Agent
6,007 satisfied customers
My gross income is $17,105.64. Do I have to file a tax
My gross income is $17,105.64. Do I have to file a tax return? … read more
Barbara
Barbara
Enrolled Agent
6,007 satisfied customers
Self employed, Im wondering if inmigration uses gross income
Self employed, Im wondering if inmigration uses gross income or net income for their figures... I make about 70,000 gross income on 1099 but after deductions net income is about 32,000.. we are a fami… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x