The Minnesota Department of Revenue may issue a continuous levy to a third party to collect your debt. (See Minnesota Statutes, section 270C.68). They must respond to our levy or risk being assessed for your debt, plus a 25% penalty.
If you are:
A business, the third party must send 100% of the funds owed to you
An individual, the third party must send up to 25% of each payment owed to you
Examples of payment types we can levy include 1099 non-employee funds, dividends, rents, royalties, trust distributions, contract payments, or any other type of periodic payments.
When we issue a continuous levy, we send you a Continuous Levy Notification and Exemption Claim Form. The form lists the most common exemptions, but does not include them all. After we receive your claim form, we will determine if it is valid. If it is, we release the levy. (See Minnesota Statutes, section 550.37).
The exemption claim applies only to:
- Wage levies
Continuous levies issued for non-employee compensation
Setoffs and Adverse Interests
Levy setoffs and adverse interests may reduce the amount our levy can take.
Once we issue a levy, you cannot enter into a payment agreement to stop it. You may send voluntary payments to shorten the length of time it stays in place, but we do not stop the levy.
We may reduce the amount of the payments if it is causing a significant hardship.
If a new debt is added to your account after we issue a levy, we do not include it on the existing levy. We must send due process for the new debt, and when the levy is paid in full, we may issue a levy for the new debt.
We will release levies when:
You claim a valid exemption
The debt is paid in full
Adverse interests or setoffs prevent a payment
You file bankruptcy