Question:

    My husband and I have been married since 2001.  We have joint tax liability since then, and I also have tax liability from 1998 through 2000.  Can we file just one offer in compromise?

Answer:

    When you file an offer in compromise, the IRS is required to compromise ALL of your tax liability.  So if you had personal income tax liability and the IRS had assessed the Trust Fund Recovery Penalty against you for a business that you owned, you would be required to try to settle all of the tax against you.  Similarly, if you have a personal liability for 1998, 1999, and 2000 and you and your husband have a joint liability for years 2001-2007, you and your husband will be required to file separate offers in compromise.  While this is not a major shift from filing just one offer in compromise, the problem created is that there will now be a requirement for two $150 application fees and two down payments.  While this does not necessarily double your offer amount, it will most likely just alter the amounts for each offer in compromise.