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
  • Income
  • Expenses
  • Assets

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.


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