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Last Updated: 12/27/2018


A levy is a legal action the Department of Revenue may use to take money or property to collect unpaid taxes and other debts. (See Minnesota Statute 16D.08, subdivision 2.)

To collect your debt, we may issue a:

Priority of Levies  

The following levies take priority over ours:  

  • Internal Revenue Service (IRS)

  • Court ordered child support

  • Federal student loan

  • Department of Employment and Economic Development (DEED)


A setoff occurs when your financial institution uses the funds in your account to pay outstanding loans, including those held as collateral for a loan. They must submit proof the "right of setoff" was done prior to receiving our levy. (See Minnesota Statutes, section 270C.67.) 

A setoff could also be an authorized payment deduction from your wages, commissions, or bank account. If we are levying the same funds, you may have to prove there was a signed, written agreement with a creditor at least 30 days prior to our levy for us to allow this setoff. (See Minnesota Statutes, section 270C.69.) 

Adverse Interests  

Adverse interests are claims by creditors against your earnings or a third party who has a right to your assets. To prove their claim, the financial institution must provide the details of the assets. (See Minnesota Statutes, section 571.72 and Minnesota Statutes, section 571.923.)

If your employer received our wage levy, it takes priority over any Adverse Interest that has been in place for at least 70 days.

Failure to Honor  

When a payer fails to complete electronic disclosures and send payments, they are not complying with our levy. We may hold the payer liable for your unpaid balance and add a 25 percent penalty for failing to honor the levy. (See Minnesota Statute 270C.70.)

 Employee Rights 

An employer cannot terminate or discipline you because of a levy. (See Minnesota Statute 270C.69, subdivision 2 and Minnesota Statute 571.927.)