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Last Updated: 4/26/2018

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 and propose a payment amount and schedule. For most personal debts, you can do this online. If you owe business debt, you must call us. See Contact Us at the top, right corner of this page.
  • We may ask for a completed financial statement detailing your income, expenses, and assets to determine your ability to pay.
  • If we accept your request, we send you a formal payment agreement that details your payment terms.
  • 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.
  • 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 may request to have a third party pay on your behalf. A third party could be a parent, spouse, or employer. If you choose this option, please note:
    • We cannot talk to your third-party payer about case-specific information without a valid Power of Attorney form. This includes, but is not limited to:
      • Account balance
      • Payments unrelated to the payment agreement
      • Reason for debt
    • We cannot disclose your third-party payer's financial information without a valid Power of Attorney form.
    • We cannot change your agreement without approval from the third party unless you are using a different payment method.
    • We notify you if your payment agreement defaults.
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.)