Can an individual submit an Offer in Compromise with respect to a joint liability?
Yes. The State may (1) accept the offer as payment in full of the entire obligation, (2) accept the offer as payment made by a spouse who did not earn income which contributed to the tax liability (innocent spouse), or (3) accept the offer as payment in full of the applicant’s liability and pursue collection of the remainder from the co-obligor. To the extent the State accepts the offer as payment in full only of the applicant’s liability, such action will not release the applicant from any liability to the co-obligor. The co-obligor may pursue the applicant for contribution to the extent forced to pay the remainder of the obligation.
Related Questions
- How many Forms 656 must I complete if my spouse and I are submitting one offer to compromise the same joint liability? How many application fees must be attached?
- When a married couple owes a joint liability and one spouse also owes an individual (non-joint) liability, how many Offers In Compromise are required?
- Can an individual submit an Offer in Compromise with respect to a joint liability?
