Innocent Spouse or CNC or OIC

[Michael O’Leary]

I have an interesting situation and I want to see what the group thinks:

I have a client who is in collection status with IRS for tax years 2009-2013. She was (and still is) married to the same spouse now as in those years. No income for her for 2009-2013. Filed joint returns, tax was never paid, now totals $132K. Spouse discharged his liability for the tax debt for those years through solo bankruptcy. Now IRS comes after her based upon joint and several.

I think I have options here, namely CNC (to by time) before filing either Innocent Spouse (equitable relief) or an OIC.

Do you agree? Am I missing something here?

[Eric Green]

Nope, I agree. You can have her deemed CNC to try and run the statute out or potentially an OIC if she qualifies and it makes sense from an RCP analysis. It is probably a lot easier and cheaper than trying an innocent spouse filing.

[Michael O’Leary]

Thank you Eric, you are a great teacher. I’m learning.

[Author]

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