Offer in Compromise for Married Couples – What If Only One Spouse Owes?

Marc Boulanger • July 7, 2025

If you’re married but only one spouse owes back taxes, applying for an IRS Offer in Compromise (OIC) gets more complicated.

Can you still settle the debt? Will your spouse’s income count against your offer? Will they seize jointly owned property?

At Boulanger CPA and Consulting PC, we help Oklahoma couples file successful Offers in Compromise — even when only one partner owes the IRS.

Here’s what you need to know before you apply.

Yes. You can file an Offer in Compromise as an individual taxpayer even if you’re married, as long as the tax debt is in your name only.

This is common with:

But be warned: The IRS will still ask about household income, shared expenses, and joint assets.

The IRS will require you to report total household income — including your spouse’s — on Form 433-A (OIC).

However, if your spouse is not liable for the debt, you can also claim a marital income allocation to exclude their income from your disposable income calculation.

This is done by:

This calculation can significantly lower your Reasonable Collection Potential (RCP).

If you share assets like:

The IRS will assume you own 50% of any jointly held asset — unless you prove otherwise.

So if you have $10,000 in a joint bank account, the IRS will count $5,000 as your equity in the OIC.

Pro tip: If your spouse contributes 90% of the money in the account, provide bank statements or wage deposits to document it.

If only one spouse owes, the other should not sign Form 656 or be listed as a co-applicant.

You can protect the non-liable spouse by:

If you're already in an installment agreement or owe taxes jointly from prior years, you may want to look at innocent spouse relief.

Get Help

We help Oklahoma couples resolve complex tax problems, including Offers in Compromise when only one spouse owes.

We'll prepare your Form 433-A (OIC), calculate RCP, and build your package for maximum protection and the best chance of IRS acceptance.

📞 Call (405) 384-4900
📅 Schedule a free strategy call

FAQ

Can I file an Offer in Compromise if I'm married but only I owe?

Yes. If the tax debt is only in your name, you can file individually, but the IRS will still consider household income and shared assets.

Does my spouse’s income count in the OIC calculation?

The IRS requires you to report total household income, but you can claim a marital income allocation to exclude your spouse’s income proportionally.

Will the IRS take our joint bank account?

The IRS will assume you own 50% of any joint account unless you prove otherwise. Proper documentation can reduce your reported equity.

Should we file a joint or separate OIC?

If only one spouse owes the debt, a separate OIC is usually better. It protects the non-liable spouse’s income and assets.

✍️ About the Author

Marc Boulanger, CPA, is the founder of Boulanger CPA and Consulting PC, a CPA firm based in Oklahoma City, OK.

Marc is the author of Oklahoma Taxpayers' Guide: Taking a Stand Against the IRS and has resolved hundreds of complex federal and state tax cases.

With over a decade of experience in IRS and OTC representation, Marc helps Oklahomans navigate high-stakes tax problems with clear strategy and calm expertise.

He is a Certified Tax Representation Consultant and a member of the American Society of Tax Problem Solvers (ASTPS).

📍 Office: Oklahoma City, OK | 📞 (405) 384-4900 | 🌐 www.oklahomacity.cpa