Navigate Up
Sign In
Last Updated: 1/7/2015

Payment Agreements

General Information

If you owe a tax debt or other debt to the Minnesota Department of Revenue and cannot afford to pay it all at once, you can request a payment agreement to settle your debt over time.

We can set up payment agreements for both individuals and businesses.  But the process and forms are different. For details, see Requesting a Payment Agreement.

In some cases, we may deny your request for payment agreement, or cancel an agreement after it begins. For details, see Denying or Canceling a Payment Agreement.

Note: If you owe a tax debt, we charge a $50 fee to set up a new payment agreement. This non-refundable fee is added to what you owe and figured into the agreement.

 How it Works

 A payment agreement is a formal contract between you and the department. The general process is outlined below.

  • 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 complete a financial statement, which details your income, expenses, and assets. We use this information to consider your request based on your circumstances and ability to pay the debt.
  • If we accept your request, we send you a formal payment agreement that details what you owe, the length and ending date of the agreement, and the payment terms.
  • In some cases, we may require a different payment amount or schedule from what you proposed. In most cases, you must send payments by electronic funds transfer (EFT).
  • Once you enter into a payment agreement, you cannot change the terms of that agreement. In some cases, we may agree to cancel an existing agreement and set up a new one with a different payment amount and schedule.
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.

View the statute (Minnesota Statutes, section 270C.52).