Divorced tax payers filing IRS OIC

tax payers whom filed MFJ and owe back taxes. They qualify for an OIC. They are both self-employed with their own business & living expenses. My question is should I fill out separate 433A forms for each tax payer and combined the net income/assets to the IRS offer form 656? I researched this and couldn't find detailed answers or guidance even with the IRS. I thank anyone for their input.

Since the 433-A reports household income and expense information, I'd prepare a separate Collection Information Statement for each taxpayer/household. First, though, I'd look at whether a joint or separate Offers would be most advantageous for the taxpayers, and whether there was a potential conflict in representing taxpayers with possible competing interests.

Since the 433-A reports household income and expense information, I'd prepare a separate Collection Information Statement for each taxpayer/household. First, though, I'd look at whether a joint or separate Offers would be most advantageous for the taxpayers, and whether there was a potential conflict in representing taxpayers with possible competing interests. ============== I agree that there may be an ethics problem here. You should probably get written acknowledgement from both of them regarding any conflicts that might arise for representing both of them.

I generally don't do OICs, but if this were my clients, I'd submit one offer but state their separate liabilities as an attachment to the offer.

"Terry Fallis" wrote

Yes. They are now separate. File separate statements.

Nope. The taxpayer is severable liable and you have to make separate offers. The RO I worked with said that was they way it had to be done.

And note: I didn't do the other spouses offer.

According to IRM 5.8.3.5 (03-26-2010)

"Two or more taxpayers who jointly owe the same liability (including spouses living separately or divorced) may submit a joint OIC on one Form 656 showing each name, address, and taxpayer identification number. However, separate OICs (one for each person) may be submitted if the individuals deem it to be appropriate for their particular situation."

Each 656 will incur a processing fee.