Settling For Less Personal Income Tax
IRS offers are done separately for each entity. Individuals, couples with joint liabilities, corporations, partnerships, trusts, all file separate offer forms.
Individual Taxes Owed Separately Or Joint
If you owe taxes as an individual only, you file one offer in compromise for 656. On the form you list your 1040 taxes and any other tax like trust fund (civil penalty) charged to you.
- If you are married and have a liability from any years you filed jointly with your spouse, you must also file a joint offer for 656 for those years.
- If your spouse is not filing an offer those years, you could list it on your individual application. If accepted, only you get the tax deduction.
- Your spouse or ex-spouse will still owe the total amount. They must take action separately to get any reduction.
