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Bob261
New Member

IRS OIC Pre-Qualifier asks for household income, does that include tax exempt income?

The IRS OIC (offer in compromise) tool asks for household income from everyone who contributes -- does this include tax exempt income such as SSI (supplemental security income) or income made under Notice 2014-7 (for example, an IHSS worker living with their eligible person)?

 

This isn't made clear on the IRS' website and seems like a very important factor.

 

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2 Replies
ee-ea
Level 15

IRS OIC Pre-Qualifier asks for household income, does that include tax exempt income?

The  question in OIC is, What money is available to pay the past due tax?  That the money is tax exempt is irrelevant.

Bob261
New Member

IRS OIC Pre-Qualifier asks for household income, does that include tax exempt income?

Thanks for the reply! Although it seems weird for tax exempt status to not matter when considering... paying taxes. But I understand. Further, it seems weird to count the entire household as "available funds" to pay via OIC when I do not have access to my entire household's funds. Spouse I can understand, but the two unrelated adults I live with? It's not like I can just tell them "hey you guys have to pay my portion of the rent now until this is paid off, we good?" That's... not how people live. 

 

Unless I'm misunderstanding what they mean by household, but it seems pretty cut and dry. Also weird that they "calculate" food and such for me, especially when we have an abnormally high electric bill that drastically shifts our money situation, argh.

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