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Last Updated: 7/24/2017

Abatement

​​An abatement is the cancelation of valid penalty, and the interest on the penalty. (See Minnesota Statutes, section 270C.34.)

We assess penalties for:

  • not filing a tax return
  • filing late tax returns
  • paying tax late
  • not paying required estimated deposits

To request an abatement, you must send a written request to us within 60 days from our first written notice of penalty. You do not have to pay tax and interest or file and pay missing tax returns before we consider an abatement as long as you can prove reasonable cause. If you are asking for abatement on more than one tax debt, we will examine each debt separately.

Reasonable Cause

A reasonable cause results from circumstances beyond your control. We decide each case based on the information you provide. Not having funds to pay the amount due or good filing history alone is not considered reasonable cause.

Business Trust Taxes

We rarely abate penalty for sales or withholding tax because the money belongs to the state at the time you collect it. You cannot use trust taxes for any other purpose.

Partial Abatement of Penalty

We may abate a partial amount of the penalty after reviewing your circumstances.

Abatement of Interest

We will abate interest on any penalty we abate. We rarely abate interest on the unpaid tax.

Denial of Abatement

If we deny your timely filed abatement request, you have the right to appeal our decision to the Appeals and Legal Services Division. If they deny your appeal, you will have an additional 60 days to appeal the denial in Minnesota Tax Court.