MINNESOTA DEPARTMENT OF REVENUE BACK TAX RELIEF

Get started resolving your state tax liabilities using the information below.  If you still need help, reach out to us using the contact form to the right of this page.

Okay, there’s an easy place to start.  Google “MN-DOR Collection”.  You should see the Department of Revenue’s tax collection page with a ton of great information on a lot of important topics.

MN-DOR Monthly Payment Plan

Individuals may be eligible to secure a Payment Plan Agreement online.  There is a $50 nonrefundable fee for the agreement.

Businesses must contact by phone, email or letter to obtain a monthly payment plan.

The amount of your monthly payment will be determined by your financial situation.  The state uses Collection Information Statement forms to help determine a taxpayer’s ability to pay.

The MN-DOR uses the same guidelines as the IRS when considering a monthly Installment Payment Plan, including IRS Collection Financial Standards to help analyze the Collection Information Statements. 

  • Although the monthly payment is determined by financial circumstances, you won’t be given unlimited time to pay.  Up to 5 years may be granted on case by case basis.
  • If paid within 6 months, you may not need to provide financial information.
  • Payments may be paid monthly, biweekly, weekly.
  • Payments must be paid through the Electronic Funds Transfer (EFT).
  • If denied, taxpayer has the right to reconsideration by the Taxpayer Rights Advocate.
  • If a business’s sales tax permit has been revoked, it cannot be reinstated until taxpayer has made payment in full.
  • You may have to pay any outstanding parking tickets before being allowed into an Agreement.
  • The DOR may revoke or stop the issuance or renewal of a taxpayer’s business or professional license when a back tax is owed.

MN-DOR uses outside collection agencies in some cases.  If your case has been referred to a collection agency, you may set up a monthly payment plan with the collection agency by contacting them directly.

State of Minnesota Offer in Compromise

Yes, the Minnesota Department of Revenue has an Offer in Compromise.

Here are some quick tips.

  • The DOR states that the Offer in Compromise is reserved for extreme circumstances, not just a lack of funds.
  • OIC usually reviewed in 60 days, provided all information/documents needed are received, but DOR says to allow for at least 90 days.
  • $250 non-refundable deposit to be submitted with Offer
  • MN-DOR considers whether or not tax is “Trust” tax (sales, withholding) when reviewing OIC.
  • A one-time lump sum payment to pay an accepted Offer is standard, paying the Offered amount in monthly payments is rare, but possible.
  • There are no formal Appeal rights if your Offer is denied by the Department or Attorney General.

Penalty Relief

It’s very difficult to get penalties removed.  You need to provide an explanation of the reason(s) for the delinquency within 60 days of the date that the notice stating a penalty has been imposed was mailed.

Requests pointing to Reasonable Cause, circumstances out of the taxpayer’s control, will be considered for penalty relief.

 Will the DOR remove interest?  Don’t count on it.





 
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Our Specialties

  • Tax Debt Resolution / Tax Relief
  • Offer in Compromise / IRS Settlement
  • IRS Penalty Abatement and Relief
  • Installment Agreement / Monthly Payment Plan
  • Tax Lien, Levy and Garnishment Removal
  • IRS Lien Subordination, Withdrawal, Discharge
  • Enrolled Agents / Tax Debt Specialists

Fresh Start Tax Relief LLC, Taxes - Consultants & Representatives, Chicago, IL

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