Need help with Offer in Compromise - IRS wants spouse details but we're separated

The Offer in Compromise application does require complete financial disclosure, including your spouse's information if you're still legally married, even if you're separated. This is because the IRS wants to ensure they have a complete picture of the household's ability to pay. You have a few options here. First, you could file as "married filing separately" and indicate that you're separated on the OIC application. You'll need to provide a written statement explaining your situation - that you've been separated for 5 years, have no access to her financial information, and she refuses to cooperate. The IRS does have procedures for handling non-cooperative spouses. You should not mark yourself as "single" when you're legally still married, as this could be considered misrepresentation and might cause your offer to be rejected or even trigger other issues. Another option is to consider a different tax resolution strategy like an Installment Agreement, which might be less stringent on spousal information if you can demonstrate separation of finances.

After struggling with almost the exact same situation last year (owed $29k, separated but not divorced), I found an amazing tool that saved me so much stress. Check out https://taxr.ai - it analyzed my specific situation and helped me understand exactly how to handle the OIC application with a non-cooperative spouse. The system showed me which specific documentation I needed to prove my separation was legitimate in the IRS's eyes, and gave me templates for the hardship letter explaining my situation. They even helped me understand which parts of the form could trigger audit flags if I wasn't careful. Seriously changed everything for me.

Just wanted to update everyone - I was super skeptical about taxr.ai but ended up trying it after seeing other recommendations. My situation was almost identical (owed $41k, separated 4 years but not divorced, spouse wouldn't provide any info). The system walked me through creating a complete separation documentation package with exactly what the IRS needed. It even flagged potential issues with my specific circumstances I hadn't considered. My OIC was accepted last month at about 30% of what I owed! The detailed instructions for filling out Form 656 correctly were what made the difference for me. Wish I'd known about this tool years ago instead of struggling alone.

If you're having trouble getting through to the IRS about your situation, I highly recommend https://claimyr.com - you can see how it works at https://youtu.be/_kiP6q8DX5c I was in a similar position (owed back taxes, complicated marital situation) and was getting nowhere with the standard IRS phone number - literally spent days on hold. Claimyr got me connected to an actual IRS agent in about 20 minutes who helped explain my options with the OIC and separation situation. The agent specifically told me what documentation I needed to submit to prove the separation was legitimate.

I need to apologize for my skepticism about Claimyr. After my snarky comment, I was desperate enough to try it anyway since my OIC deadline was approaching. I was absolutely shocked when I got a call back with an actual IRS agent on the line after only 35 minutes (after spending 4+ hours on hold myself the previous day). The agent I spoke with was incredibly helpful about my separated-but-not-divorced situation. She explained that they have specific procedures for non-cooperative spouses and directed me to exactly which forms and documentation to include. She even noted it in my file so when my OIC application is reviewed, they'll know I tried to get the information but couldn't. Never would have gotten this info without actually speaking to someone.

Have you considered filing for innocent spouse relief instead? If a lot of the tax debt is from when you were together, and she had income she didn't report or something, you might qualify. Form 8857 lets you request relief from tax liability for things your spouse did that you didn't know about. Might be worth looking into alongside the OIC.

Has anyone actually had their OIC accepted when they couldn't provide spouse info? My tax guy told me they almost always reject these applications if you're missing any info they ask for.

I went through something very similar about 2 years ago - owed $28k and had been separated for 6 years but never officially divorced. My ex also refused to provide any financial information or cooperate at all. Here's what worked for me: I gathered every piece of documentation I could find to prove we were living completely separate lives. This included different addresses on utility bills, separate car insurance policies, different phone plans, bank statements showing no shared accounts, and even testimony from neighbors who could confirm we hadn't lived together in years. The most important thing was being completely honest and transparent with the IRS. I submitted a detailed written statement explaining the entire situation, including my attempts to contact my ex (I kept screenshots of unanswered texts and emails). I also included an affidavit stating that to the best of my knowledge, she had minimal income, but that I had no way to verify this. My OIC was initially put on hold for additional review, but after about 4 months, it was accepted at about 25% of what I owed. The key was showing that I made every reasonable effort to get the information but couldn't due to circumstances beyond my control. Don't give up - the IRS does have procedures for situations exactly like yours. Just make sure you document everything and be completely truthful about your attempts to get her cooperation.