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Last Updated: 9/5/2018

Personal Liability

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You may be liable for tax debts of your business. If the business fails to pay the debt, we send an Order Assessing Personal Liability letter informing you of your responsibility to pay the business debt along with your appeal rights. (See Minnesota Statutes, section 270C.56, 289A.31, and 290.92.)

Who can be assessed?

We may assess personal liability to any of the following:
  • officers and directors
  • managers
  • treasurers and financial secretaries
  • accountants and bookkeepers
  • supervisors and other employees who:
    • have authority to write checks for the business
    • have the authority to decide whether to file tax returns and pay debts
    • hire and fire employees
    • control the business’ financials
    • have an entrepreneurial stake in the business

Officers of corporations, limited liability companies, cooperatives, estate and trust and organizations, whether profit or non-profit, must be assessed before we take enforced collection action against them.

We do not have to assess sole proprietors and individual spouses in a qualified joint venture before we take enforced collection actions for business debt.

General partners are jointly liable for the partnership minimum fee.

Appeal Period

Once assessed, you have 60 days to appeal either to us, or to Minnesota Tax Court. If appealing to us, you may request, in writing, an additional 30 days to appeal. The letter we sent you contains this information.

If we deny your appeal, you have 60 days from the date of our denial to appeal in Minnesota Tax Court. We will not take any collection action during your appeal period.

What taxes are subject to personal liability?

We may assess personal liability for the following:
  • Cigarette and Tobacco Tax
  • Gambling Tax
  • Liquor Tax
  • MinnesotaCare Tax (from 1996 on)
  • Petroleum Tax
  • Sales and Use Tax
  • Withholding Tax and Non-Resident Withholding Tax against shareholders
  • Solid Waste Management Tax
  • Tobacco Health Impact Fees
 The following are not subject to personal liability:
  •  Corporate Franchise (Income) Tax
  • Partnership Income Tax

  • MinnesotaCare Taxes (from 1995 and earlier)

  • Other Agency Debts