The Minnesota Department of Revenue uses financial statements to evaluate a debtor’s ability to pay. Financial statements verify assets, income sources and expenses. Financial Statements are also used in allowing a debtor to propose payment agreements.
Types of Financial Statements
When a debtor claims to have an inability to pay a debt in full, and an agreement cannot be reached, the department uses one of four different financial statements:
Reasons Financial Statements are Requested
Financial statements are requested from debtors to help make a determination for following requests:
Expense Allowance Guidelines
The department uses the same financial standards that the Internal Revenue Service (IRS) uses when collecting past-due debts. These financial standards are used as a guideline to help us determine a debtor’s ability to pay the debt. View the IRS National Standards.