Minnesota enacted a Taxpayers’ Bill of Rights in 1990, which are organized by subject below.
General Department of Revenue Practices
In-person interviews and recordings: Taxpayers have certain rights during most in-person interviews, including the right to record the interview, to buy a copy of our recording if we have one, and to have someone come to the interview to represent them.
Taxpayer Assistance Orders: The Taxpayer Rights Advocate Office has the power to issue taxpayer assistance orders.
No uneconomical levies: Revenue cannot take taxpayer property and sell it to pay off their debt if it expects the cost doing so is more than the property is currently worth.
No levies on appearance date of a subpoena: Revenue cannot levy property the same day a taxpayer or their representative is supposed to appear to respond to a subpoena, unless they believe collection of the tax is in jeopardy.
Release of levies: Revenue must release a levy in certain situations, including if the lien is satisfied or unenforceable, if the taxpayer enters a payment plan, and many more. If the taxpayer needs to use the property for their trade or business, they can get a fast review of whether the lien must be released.
Limited enforcement quotas: In some cases, the Department of Revenue cannot use tax enforcement results or quotas in evaluating Revenue employees or their supervisors.
Notice and Explanation
Notice of rights: Revenue must inform taxpayers of their rights. It must write them out in simple, nontechnical terms and distribute them at certain times, including whenever Revenue contacts a taxpayer about the determination or collection of a tax.
Content of notices of assessments: Revenue must explain how much the taxpayer owes in taxes, penalties, and interest, and how the amount was determined in its notices regarding assessments, determinations, or orders.
Notice of levy, payment alternatives: Before issuing a levy, Revenue must give the taxpayer a notice explaining their appeal rights and available alternatives, including payment plans.
Abatement
The Minnesota Department of Revenue may abate (remove or reduce) penalties some situations.
Reasonable cause or disaster: Revenue may remove certain penalties if there was reasonable cause and the taxpayer did not file or pay on time, or if the taxpayer lives in an area the president or governor declared a state of emergency.
Incorrect advice: Revenue must remove certain penalties if the taxpayer reasonably relied on advice from a Revenue employee and the advice meets both these requirements:
- It was given in response to a specific written request the taxpayer made
- It was not caused by the taxpayer providing inaccurate or misleading information.
Help if you think Revenue has made a mistake
Failure to release a lien: A taxpayer can sue Revenue for knowingly or negligently failing to release a lien when they are required to.
Revenue employee misconduct: A taxpayer can sue Revenue if an employee recklessly or intentionally disregards a law while trying to collect overdue taxes.
Appeal of incorrect liens: A taxpayer can appeal an incorrect lien to the commissioner, in the form and at the time prescribed by the commissioner. If Revenue does not release an incorrect lien quickly enough, they may be liable for damages and attorney fees.
Right to request seized property be sold
Right to request sale of seized property: If Revenue seizes taxpayer property, the taxpayer has a right ask them to sell it within 60 days (or a longer period requested by the owner). In most cases, they must sell the property within the time requested.
Judicial Review
Administrative and judicial review of jeopardy assessments: Provides for the administrative and judicial review of jeopardy assessments and collections. Revenue must follow the administrative review process that Minnesota law describes, and decisions by Revenue under that process are appealable to the court.
Appeal of determination that property is perishable: Normally, if a levy would otherwise be temporarily halted, Revenue can still sell the property if any of these apply:
- The property is perishable
- The property may be greatly reduced in value by holding it too long
- The property is very expensive to keep
If a taxpayer disagrees, they can appeal this to the Minnesota Tax Court.
Refund of overpaid interest: If a taxpayer pays too much interest on an order of the Minnesota Tax Court, they can ask to have the court reopen the case and refund the overpayment.
Tax Court injunctions during appeal, interest, costs: The Minnesota Tax Court can order Revenue not to enforce an order while a taxpayer is appealing it. The taxpayer can also order Revenue to pay interest and litigation costs if it does not refund a taxpayer quickly enough after an order.
Attorney fees and costs: The Minnesota Tax Court or Minnesota Supreme Court may award a taxpayer fees and costs if Revenue’s position was not substantially justified, including expenses the taxpayer paid to administratively protest or appeal.
