I have been offered an offer and compromise from the IRS on back taxes. I am getting divorced and my wife has a larger income. She is willing to give me a down payment on a condo as part of our divorce settlement. I know that IRS has 3 years to recoup the full amount of back taxes if a person comes into money during that time. Would my divorce settlement be exempt or would IRS take it?

It is likely the IRS would try to take the divorce settlement. The best way t handle it is to have your ex-wife make the condo down payment directly to the seller of the condo, with her relinquishing any rights to the condo.

That would be considered a gift by her, and she may have to file a gift tax return to report the gift, but the Unified Credit will likely prevent her from actually paying any gift tax.