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Penalty Abatement for Businesses
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The Minnesota Department of Revenue may assess penalties when you do not comply with state tax laws. You may be able to request an abatement (cancellation) of these penalties and interest on the penalties.
You may request an abatement if:
- You have reasonable cause for filing or paying late, such as circumstances beyond your control or a first-time occurrence.
- You received incorrect advice in writing from a Minnesota Department of Revenue employee.
Submit your request after we notify you of a penalty. We do not abate tax and rarely abate the interest on tax.
Learn more about Penalties and Interest Rates for Businesses.
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You have reasonable cause when the late filing or payment is due to circumstances beyond your control. This may include losing your home, business, or records as a result of an unforeseen disasters or hardships, including:
- Severe weather
- Fire
- Flood
- Theft
Note: If a natural disaster affected your ability to file or pay on time, you may qualify for tax relief. For more information, see Disaster Relief.
You must send a written request within 60 days of the date on the first notice of penalty we mail you. You do not need to pay tax or interest before requesting an abatement if your request is timely.
Your request must include:
- Your name and contact information
- Your business’ name
- Your Federal Employer Identification Number (FEIN) or Minnesota Tax ID Number
- Statement requesting an abatement
- Tax types and periods included in request
- Reason we should abate the penalty
- Supporting documentation
Use the table below to determine where to send your request.
| IF YOU |
THEN |
| Received a letter notifying you of the penalty |
- e-Services: Send us a message through your e-Services profile. Choose the correct account type when sending your message.
- Email: Email the appropriate tax division.
- Mail: Send to address on “Your right to appeal (ask for a change in our decision)” enclosure in your letter.
|
| Received a bill |
- e-Services: Send us a message through your e-Services profile. When selecting the Message Type, choose Collection Question.
- Email: mdor.collection@state.mn.us.
- Mail: Minnesota Department of Revenue, PO Box 64564, St. Paul, MN 55164-0564
|
| Cannot locate a letter from us notifying you of the penalty |
- e-Services: Send us a message through your e-Services profile. Choose the correct account type when sending your message.
- Email: Email the appropriate tax division.
- Mail:
- For Sales Tax: Minnesota Department of Revenue, Mail Station 6330, 600 N. Robert St., St. Paul, MN 55146-6330
- For all others: Minnesota Department of Revenue, Mail Station 4108, 600 N. Robert St., St. Paul, MN 55146-4108
|
Note: If you do not submit an abatement request within the 60 days, you may be able to file a claim for a refund. For more information, see Claim for Refund.
We will consider your request and notify you of our decision.
- If we approve your request: We will notify you by mail and either reduce your amount due or refund your amount overpaid.
- If we deny your request: We will send you a letter explaining why and provide appeal instructions.
If you do not receive our decision within 45 days of your request, contact us to check the status. If we do not respond to your request within 60 days, you may appeal to the Minnesota Tax Court.
