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Last Updated: 12/27/2018

Personal Liability Assessment

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You may be liable for the tax debts of your business. If the business fails to pay the debt, the Minnesota Department of Revenue sends:

  • an Order Assessing Personal Liability letter notifying you of your responsibility to pay the business debt
  • your appeal rights explaining your right to request a review of our assessment

 (See Minnesota Statutes, section 270C.56, 289A.31, and 290.92.)  

Assessing personal liability 

The Department of Revenue

​These entities

May assess personal liability at any time
  • ​Officers and directors
  • Managers
  • Treasurers and financial secretaries
  • Accountants and bookkeepers
  • Supervisors and other employees who:
    • have the 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
​Must assess personal liability, prior to enforced collection actions against them
  • ​Officers of corporations
  • Limited liability companies
  • Cooperatives
  • Estate and trust organization - profit or non-profit
​Is not required to assess prior to enforced collection actions against them
  • ​Sole proprietors
  • Individual spouses in a qualified joint venture

Personal Liability Assessment Appeal

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

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

What taxes are subject to personal liability? 

​The Department of Revenue

​Tax or fee

​May assess personal liability
  • ​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 shareowners
  • Solid Waste Management Tax
  • Tobacco Health Impact Fee
Does not assess personal liability
  • ​Corporate Franchise (Income) Tax
  • Partnership Income Tax
  • MinnesotaCare Tax (from 1995 and earlier)
  • Other Agency Debt