Joint Offer in Compromise for Divorced Couples

In an earlier blog, I talked about an ex-wife’s liability when the ex-husband successfully pursued an Offer in Compromise. I said that the IRS can pursue this person’s ex-wife for any joint tax liability remaining after his Offer in Compromise is paid. Today I’m going to propose another solution to his problem that will also relieve the liability of the ex-wife. However, the two must be willing to cooperate! Even though the two are divorced, they can still file a joint Offer In Compromise. This will involve knowing the assets and earning power of both parties. If an Offer is possible considering all of their assets combined, then the delinquent tax would be completely satisfied by the amount of the Offer. Pursuant to the Court Order, the husband would have to pay the total Offer amount, but this would still be a lot less than the total owed. The IRS does not care who pays the Offer, only that it is paid. This is the best solution if they can work together.