TAX DEBT RELIEF OPTIONS – Minnesota Department of Revenue

M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals in Minnesota since 2007 and nationwide since 2005.  We deal with the IRS and State taxing authorities, so you do not have to!  

Minnesota Department of Revenue’s website provides a good starting point to resolve your business or personal tax liability.  

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.

PAYMENT PLANS TO RESOLVE MINNESOTA BACK TAXES

Minnesota Department of Revenue (MN-DOR) is typically more lenient and easier to deal with when a personal tax is owed compared to when a business tax is owed.  Here are the key points you need to know about setting up a Payment Agreement to satisfy your personal and business tax liabilities.  

Personal Payment Agreements

• Individuals can set up a Payment Agreement online using the Payment Plan Agreement System. 
• Payment Agreement terms vary based on your financial ability. 
• MN-DOR may require a Personal Collection Information Statement to support your financial ability to make monthly payments. 

Business Payment Agreements

• Businesses must contact the state directly via phone, email or letter to discuss monthly payment plan options.  You cannot set up a Payment Agreement online. 
• MN-DOR typically requires a completed Business Collection Information Statement form to support the business’ ability to make monthly payments, unless you can pay the tax liability in full with 6 months.  
• 60 months is the max term for business Payment Agreements. 
• Payment frequency may be set up monthly, biweekly or weekly. 
• Payment Agreements must be paid through Electronic Funds Transfer. 
• A Business with a revoked Sales Tax License will not have it reinstated just because a Payment Agreement has been set up.
• MN-DOR may revoke your business or professional license if an outstanding tax debt exists. 
• If your Payment Agreement request is declined, you may ask the Taxpayer Rights Advocate to reconsider. 

Quick Tip:  If you cannot afford to pay your Minnesota back-tax debt, you may be eligible to have your Collection Case Suspended.  

REDUCE YOUR MN-DOR TAX DEBT

Offer in Compromise

Minnesota Department of Revenue does have an Offer in Compromise to settle a back-tax liability for a lesser amount.  Based on our 10+ years of experience, this is not a good strategy for an operating business but may work well for an individual tax debt.  

The MN-DOR will only accept an Offer in extreme cases and any individual submitting an OIC is subject to stringent financial review.  If your Offer is accepted, you will likely be required to pay your offer amount in a lump sum payment.  In some cases, you may be able to pay your settlement monthly, but don’t count on it.  

MN-DOR will take at least 90 days to approve or deny an Offer in Compromise once it has been received.  Unfortunately, if your Offer is denied you do not have the right to appeal it.  

Penalty Relief

Minnesota Department of Revenue is not very friendly when it comes to penalty relief.  If you want to have a chance of penalty relief you have to act quickly.  MN-DOR states that you must submit your request for the abatement of penalty within 60 days of receiving a notice from MN-DOR assessing the penalty. MN-DOR will not abate penalties associated with a sales tax liability.  Interest is typically nonnegotiable.  

Quick Tip:  For questions about an Appeal or Hardship, try the Taxpayer Rights Advocate.

MINNESOTA TAX RESOLUTION CASE EXAMPLES

The Minnesota Department of Revenue has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.



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