The book goes over a case study for one spouse liable. However, I have a case where the tax payer lives with his fiance and his mom takes care of his two daughters (daughters do not live with taxpayer, he sends mom child support voluntarily not court ordered).
Will the IRS allow the 433 analysis as a household of 4 even though:
1. Taxpayer is not legally married. Only lives with fiance.
2. Daughters don’t live with him they live with his mom.
If not, if I submit the 433 omitting fiance’s income and expenses and including a statement disclosing the fiancé’s information will IRS accept it. Fiance’s income about 80k a year. Both Taxpayer and Finance share the checking account. Taxpayer works very little and lives off student loans. He is in medschool. Taxpayer incurred debt for prior years because he had worked as contractor and never paid the SE taxes.
Presently, I am conducting the 433 analysis on both scenarios:
-Taxpayer Income and expenses only vs. 433 analysis as a household of 4.