Minnesota Taxing Information
If you are able to prove reasonable cause, the State may grant an abatement of penalties assessed for delinquent taxes or related matters, if you request one in a timely manner upon notification. Interest, however, is rarely abated.
Business Successor Liability
If you are buying or otherwise acquiring a business or its assets, you are responsible for checking with the Department of Revenue for liens. Failure to check for liens may result in your being held liable for the associated liability. If liens are filed, you should notify the DOR of the transfer of ownership via the appropriate documentation.
If you are unable to pay your tax debt in full, you may request a Compromise Agreement. This will enable the settlement of your liability for less than the full amount. Requesting a Compromise requires a comprehensive proposal, and you will need to adhere to any terms and conditions given by the State.
Before the State can take enforced collection actions, they are required to issue a written notification of those actions. This provides a period in which the recipient may resolve the debt in order to prevent such actions.
Failure to resolve your liability may result in the issuance of a levy. The State may levy property or rights thereto, including bank accounts, wages, investment assets, and associated third parties, as well as real or personal property. Levies enable the State to seize up to the value or the amount of your liability.
Priority One: Stopping Aggressive Enforced Collections
The State also has the authority to file a lien against your real or personal property. A tax lien serves as a public claim against the property, extending the statute of limitations on collections. Paying your liability will result in the lifting of a lien.
If you are unable to pay your tax debt in full, the State may consider a request for a payment plan. Should they accept, you will be required to pay in installments, and penalties and interest will still accrue on whatever amount of your liability remains unpaid, even as you pay it off.
The State is obligated to protect its interests, so you will need to comply closely with the terms of any agreement you make, lest you incur further penalties or an enforced collection process.
The State may hold an individual responsible for the tax liability of a business. The individual is determined based upon their status, as a corporate officer or another such bearer of responsibility within the business.
Power of Attorney
Both the third party authorized to receive tax debt information and the means of that authorization are referred to as Power of Attorney. In order to discuss tax information, appropriate documentation must be completed based on the context in which the authorization is taking place.
Taxpayer Rights Advocate
If you have exhausted all other means of appeal, you may request the assistance of the Taxpayer Rights Advocate office.
The TRA office may intervene on a debtor’s behalf when requested, providing a review of the debtor’s tax situation while remaining in line with the state tax code. The TRA also provides other services, such as settling spousal or ex-spousal disputes.