1. (a) If the overpayment, which is the subject of the request for compromise, qualifies as an “overpayment debt” as defined in Emp 409.02 (i), the department shall not consider a request for compromise until the individual has demonstrated through documentation the individual’s tax filing status for the tax year in question for which a tax refund offset may be, or has been, certified by the department to satisfy a debt owed by the individual.
2. (b) If the individual’s tax filing status is such that another individual would be entitled to file a request for injured spouse allocation with the IRS in order to claim a portion of the tax refund, the department shall require, prior to considering the request for compromise, the injured spouse allocation process first be exhausted with the IRS.
3. (c) If following exhaustion of the injured spouse allocation process, the individual demonstrates through documentation that the injured spouse allocation request has been rejected by the IRS, the department shall then consider a request for compromise.

Source. #10423, eff 9-27-13