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Uncollectible Debt
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When a debt becomes uncollectible, the Minnesota Department of Revenue may stop active collections on that debt. (See Minnesota Statute 16D.09.)
We determine a debt is uncollectible when:
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The statute of limitations has expired
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The debt is discharged in bankruptcy
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The liable debtor is deceased or indigent
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We made all reasonable collection efforts
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It costs more to collect the debt than the amount owed
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Your available income and assets are insufficient to pay
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It is not in the state’s best interest to pursue collection
We may continue to apply tax refunds for up to 10 years after a debt originated. After that time, we may remove the debt from our records.
If we are collecting debt for another agency, we return it to that agency.