If you cannot pay a Minnesota tax debt in full, you may request installment payments. Approval and the payment amount depend on Revenue’s review of your finances. A payment agreement gives you time to pay; it does not erase the debt. Start with Minnesota Revenue’s Payment Agreements.
Individuals and businesses have different application routes. The online system is available to an individual or assessed officer with a Social Security number who has received a bill, has no existing agreement, is not in bankruptcy, and has no levy issued against them. Businesses and people who cannot use the online system should contact Revenue. Revenue says businesses subject to Cannabis Tax or holding an active liquor license cannot enter an agreement.
Revenue’s Denying or Canceling a Payment Agreement page, updated September 21, 2026, says you may not set up an agreement while in bankruptcy. Contact Revenue about an affected account rather than assuming the restriction applies only to online applications. Missing requested information can cause denial. A denial letter explains the reason and reconsideration through the Taxpayer Rights Advocate.
Use the application link on Revenue’s Payment Agreements page if you meet its online criteria. Otherwise, contact the Collection Division at 651-556-3003 or 800-657-3909, or use its official contact form or mailing instructions. Have your notice and financial records ready. If you have not received a bill, ask Revenue about your next step; do not assume a pre-bill agreement is available. Do not send a Social Security number or financial documents through ordinary email without an approved secure method.
Revenue uses your current financial situation and IRS financial guidelines to set payments and may require a personal or business financial statement with supporting records. The written agreement controls your amount, schedule, and payment method. Interest continues under Minnesota law. Applicable penalties depend on the tax and circumstances; do not assume an uncapped monthly penalty. Existing agreement terms cannot simply be changed: Revenue may cancel an agreement and consider a new one.
Revenue may continue collection activity while a plan is requested or active, including filing a lien. State and federal refunds may still be applied to the debt. A plan does not guarantee a lien release or withdrawal. Confirm any specific collection arrangements with Revenue.
Do not assume that requesting or entering a payment agreement automatically stops an existing levy. Revenue’s Continuous Levy and Wage Levy for Individuals instructions say an issued levy cannot be stopped by entering a payment agreement. Its Bank Levy page also cautions that an issued levy cannot simply be stopped.
There is a statutory qualification: Minnesota Statutes section 270C.7109, subdivision 1(3), requires levy release after an installment agreement under section 270C.52, subdivision 2, unless the agreement provides otherwise or release would jeopardize Revenue’s secured-creditor status. The statute also permits a later levy. Revenue’s general agency instructions and the statutory release rule differ. Whether release is required in your case depends on the agreement and the statutory exceptions.
Contact Revenue about your particular levy, agreement terms, exemptions, and hardship options. Obtain confirmation of any release or reduction and whether Revenue has notified the bank, employer, or other payer; do not assume withholding or a transfer of funds has stopped.
Make agreed payments and file and pay new returns on time. Revenue may cancel for missed payments, improved finances, missing updated financial information, or collection risk. Section 270C.52, subdivision 2, also covers inaccurate or incomplete information and subsequent financial changes. Generally, Revenue must give at least 14 calendar days’ termination notice and explain reconsideration rights. Reconsideration does not extend the collection stay beyond that period. Jeopardy termination may proceed without the 14-day wait. Contact Revenue before a missed payment; reinstatement is not guaranteed.
Revenue offers a compromise process for settling eligible debt for less, based on what it expects to collect and the applicant’s circumstances. It is not limited to people already rejected for installments, and approval is not guaranteed. A collection suspension may also be requested if full payment or an agreement is unaffordable. Revenue does not suspend active businesses. A suspension can still allow liens and refund offsets.
Keep the agreement, payment confirmations, and notices. Ask Revenue how payments are applied and what remains due. If ordinary channels do not resolve a problem, consult the Taxpayer Rights Advocate Office. Follow the specific reconsideration or appeal procedure that applies to your notice; a payment agreement request does not replace a tax appeal.
Educational information only. Confirm the rules and facts for your account with Minnesota Revenue or a qualified adviser.
