Navigate Up
Sign In
Last Updated: 7/26/2017

Payment Agreements

If you owe us a tax or other debt and cannot pay in full, you may request a payment agreement that allows you to make installment payments.

We can set up payment agreements for both individuals and businesses.  See Requesting a Payment Agreement.

We may deny your request for payment agreement, or cancel an agreement after it begins. See Denying or Canceling a Payment Agreement.

Note: If you owe tax debt, we charge a $50 fee to set up a new payment agreement. This non-refundable fee gets included in the agreement.

 How it Works

 A payment agreement is a formal contract between you and the department. The payment agreement process is as follows:

  • You request a payment agreement for the debt you owe us and propose a payment amount and schedule. For most personal debts, you can do that online; for business debts, you must call us.
  • You may need to complete a financial statement, which details your income, expenses, and assets. We use this information to consider your ability to pay.
  • If we accept your request, we send you a formal payment agreement that details your payment terms.
  • We may require a different payment amount or schedule from what you propose. In most cases, you must send payments by electronic funds transfer (EFT).
  • You cannot change the terms of your agreement. In some cases, we may agree to cancel an existing agreement and set up a new one with new terms.
Note: Even if you have a payment agreement, we may take other steps to collect your debt. This may include taking your state or federal tax refund.

(See Minnesota Statute 270C.52.)