COVID-19 Penalty Relief: You may ask us to cancel or reduce filing or payment penalties if you have a reasonable cause or are negatively affected by the COVID-19 pandemic. For more information, updates, and resources, see Our Response to COVID-19.
The taxpayer must send a written request to the agency.
The request must be received within 45 days of the mailing date of the original notice or of the corrected notice. (See Minnesota Statute 270A.08.)
If a taxpayer contacts your agency and requests a contested claim hearing:
Place the claim on hold until hearing is complete and it is determined if the debt is valid or the claim needs to be closed
Respond as shown here:
Refer to your agency’s policy for disputes
Schedule a hearing with the Office of Administrative hearings within 30 days of receiving the written request. Contact OAH for acceptable options. If you do not schedule a hearing, the debt will become invalid and you will be required to remove the claim. You may also work with the debtor to resolve the debt.
For further questions about the hearing process, contact the Office of Administrative Hearings:
We require you remove claims for deceased debtors before the statute of limitations for the debt expires.
We recommend removing non-expired deceased debtor claims 3.5 years after the due date of the final tax return. Refunds will not apply after that time. This allows your agency to write the balance off as uncollectible.
To determine if a customer is deceased, you can check with the Minnesota Department of Health for:
What Does an Agency Need to Determine Exemption Qualification?
Debtors must provide their federal tax return and all sources of income for the tax year they received the medical service to the claimant agency. Use the Poverty (Medical) Income Guidelines chart on this page to determine if the income is at or below poverty.
What qualifies as income?
For this purpose, income is the debtors' federal adjusted gross income plus any of the following income for both spouses:
For married filers, the Minnesota Department of Revenue may take a joint refund for debts owed by one spouse. The other (nonliable) spouse may request a refund of their portion. If your agency receives a claim from a nonliable spouse, you must:
Determine how much of the original refund belongs to the nonliable spouse by using the Calculation Worksheet
When your agency files a claim for a debt, you must send notice to the debtor's last known address no later than five days after filing the claim. If the notice is returned mail, you must check e-Services for a new address. If you find a new address:
Document it in your records
Update the address on your system
Send new notification within five days
Your agency can get a customer address in e-Services if you have a name and Social Security Number.
If you add a claim for a deceased customer, you must send notice to the Estate of [customer name] within five days.
What information is required in the notice?
Your agency's Revenue Recapture notice must clearly state all of the following:
The date, reason, and amount of debt.
Your agency will apply the debtor's state refunds to the debt until the debt is paid, canceled, or the statute of limitations expires.
The debtor may dispute recapture of their refund by requesting a contested case hearing.
Any other information required by law, depending on the type of debt or agency making the claim.
When referring to revenue recapture, the Statute of Limitations (SOL) is the length of time an agency may use the revenue recapture process to offset refunds and pay debts. Once the SOL expires, you must cancel the recapture claim.
Some situations change the SOL for a debt. These include:
Agency-specific statutes based on the debt type collected. For example, child support arrearage and restitution debts do not expire. If your agency governs under a statute that allows a longer SOL, contact the Revenue Recapture Program.
Filing judgments before the SOL has expired allows you to use Revenue Recapture until the debt is paid.
Voluntary payments restart the SOL from the date the payment is received. Your agency must update the SOL in e-Services.
Signed waiver before the SOL has expired.
Revenue Recapture requires agencies to add the SOL date on any new claim and when editing an existing claim without one.
Agencies must monitor and remove claims before they expire. If an agency fails to remove claims before expiration, we may suspend them from using Revenue Recapture.
Key Statute of Limitations Dates:
Date claim was entered
Prior to December 12, 2018
Date of Debt and SOL were not a required field
Agencies used plus and minus to increase or decrease claims
Electronic claims could be submitted for less than $25
Agencies monitored and removed claims prior to expiration
A unique control number up to nine characters long was required for each claim
After December 12, 2018
Date of Debt is a required field and cannot be edited
SOL is a required field and is editable
If a claim entered prior to December 12, 2018, is edited, an SOL is now required
Agencies must enter the current balance of the claim
Electronic claims must be $25 or greater
A unique control number up to 18 characters long is required for each claim
Claims are zeroed out and a hold added one day prior to expiration
The hold will cease and the case will close after 90 days
Agencies must review and close their claims without SOLs prior to expiration
Agencies must verify the claims with SOLs automatically close
Under Minnesota law, claimant agencies cannot use outside debt collectors or other third parties to manage their Revenue Recapture claims. Only authorized employees of an agency are allowed to manage its claims.