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Last Updated: 12/4/2018

Payment Agreements

If you owe tax or other debt to the Minnesota Department of Revenue and cannot pay in full, you may request to make installment payments. Once you agree to a payment agreement, we add a $50 non-refundable fee to your balance. (See Minnesota Statute 270C.52.) 
 
We may deny your request, or cancel an agreement after it begins. See Denying, Canceling, or Changing a Payment Agreement.
 

For individuals 

Once you receive a bill, you may request a payment agreement online by going to our Payment Plan Agreement System. If you want to set up a payment agreement before you receive a bill, you must contact us by phone, email, or letter. See Contact Us in the upper right hand corner of this page.
 

For businesses 

To request a payment agreement for business debt, you must contact us by phone, email, or letter. See Contact Us in the upper right hand corner of this page.
 
If you have a sales tax permit, we may revoke your permit if you do not meet the terms of the agreement. By agreeing to a payment plan, you are giving up your right to a hearing regarding the permit revocation.
 

How do payment agreements work? 

  • We base the amount you pay on your current financial situation using the same guidelines as the IRS.
  • If you are an individual, we may require you to send us a financial statement detailing your income, expenses, and assets along with supporting documentation. If you are a business, we may require you to send a business financial statement.
  • Once we agree on the amount and frequency of your payments, we send you a formal agreement. You must sign and return the signature page to us. If you do not, we still withdraw the payments from your account by electronic funds transfer (EFT) on the agreed date.
  • The agreement terms cannot change. However, in some cases, we may cancel it and set up a new one with new terns. An additional $50 may be charged. 
Note: A payment agreement does not prevent your state or federal tax refund from applying to your debt. If it does, the balance is reduced and your payment agreement may end earlier.  

Third Party Payers 

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 the 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 do notify you if your payment agreement defaults.