Requesting a Compromise
A compromise allows you to settle certain debts collected by the Minnesota Department of Revenue for less than the full amount owed. (See Minnesota Statute 270C.52.) When you apply for a compromise, we consider your circumstances, including your:
- Ability to pay
We also review federal and state expense guidelines:
If your tax debt is from a joint tax return or audit, you may request a compromise together or separately. To make a separate request, you must first apply for a Separation of Liability.
If your tax debt is currently in appeal or bankruptcy, you can submit a Compromise Application after the appeal or bankruptcy is complete.
If you received a compromise approval from the IRS, it does not mean your compromise for Minnesota state tax debt will be approved.