If someone, a “third party”, owes money to a debtor, the Minnesota Department of Revenue can levy that money to pay the owed debt. A third party levy is a one-time levy that requires that the full amount of any payment due to the debtor is sent directly to the department within 30 days of receiving the levy notice.
The department will release a third party levy if the debtor can prove one of the following:
- Funds owed are exempt from the levy.
- The debtor no longer has a business relationship with the party levied.
- The debtor files for bankruptcy.