Payment Options

Bankruptcy is the court-ordered protection for those who cannot pay their bills. The Department of Revenue may file a bankruptcy claim for payment of tax debts in certain bankruptcies. For more information, see Bankruptcy and the Collection Process.

A compromise is a written agreement to settle a tax debt for less than the full amount due. It may be an option if you cannot pay your full tax liability or doing so creates a financial hardship. We generally accept a compromise when the amount offered represents the most we may expect to collect.

An offer in compromise is not an option for everyone. Explore all available payment options before submitting a compromise. For more information, see Requesting a Compromise.

The Minnesota Department of Revenue may reconsider some enforced collection actions if you are unable to pay for basic necessities. You must submit a hardship claim along with documentation to support your claim. For more information, see Financial Hardship.

The Minnesota Department of Revenue uses financial statements -- along with supporting documentation -- to evaluate your ability to pay a tax debt or other debt we are collecting. For details, see Financial Statements.

In order to receive a receipt for full payment of a debt, you must pay in our lobby with one of the following methods:

• Cash
• Cashier's check
• Money order

Personal checks are accepted, but you will not get a receipt for payment in full.

If we are collecting a tax or other debt from you and you served time in a jail or prison, you may be exempt from certain enforced collection action for up to six months after your release. For more information, see Incarcerated Customers.

The Minnesota Department of Revenue temporarily stops collection action on tax debts owed by active-duty military personnel, National Guardsmen or reservists, and their spouses, upon request. For more information, see Tax Debt Relief for Military Personnel.

If you owe tax or other debt to the Minnesota Department of Revenue and cannot pay in full, you may request to make installment payments. For more information, see Payment Agreements.

Sometimes the Minnesota Department of Revenue requires you to pay a debt using secured funds, which are guaranteed by the issuing financial institution.

While secured funds will stop certain collection actions, they are not always considered payment in full when it comes to an agency we collect debts for. If you need a receipt for payment in full, refer to In-Person Payments.

For details, see Secured Funds.

The Minnesota Department of Revenue may suspend collection activity if you demonstrate an inability to pay by filling out a financial statement and providing documentation to support your request. For details, see Suspending Collections.