1998 Minnesota Statutes

     270.68 Legal action; confession of judgment. 

    Subdivision 1.    Legal action.  In addition to all 
 other methods authorized by law for the collection of tax, if 
 any tax payable to the commissioner of revenue or to the 
 department of revenue, including penalties and interest thereon, 
 is not paid within 60 days after it is required by law to be 
 paid, the commissioner of revenue may proceed under this 
 subdivision.  Within five years after the date of assessment of 
 the tax or at any time a lien filed under section 270.69 is 
 enforceable, or, if the action is to renew or enforce a 
 judgment, at any time before the judgment's expiration, the 
 commissioner may bring an action at law against the person 
 liable for the payment or collection of the tax, in the name of 
 the state, for the recovery of the tax and interest and 
 penalties due in respect thereof.  The action shall be brought 
 in the district court of the judicial district in which lies the 
 county of the residence or principal place of business within 
 this state of the taxpayer, or, in the case of an estate or 
 trust, of the place of its principal administration, and for 
 this purpose the place named as such in the return, if any, made 
 by the taxpayer shall be conclusive against the taxpayer in this 
 matter.  If no place is named in the return, the action may be 
 commenced in Ramsey county.  The action shall be commenced by 
 filing with the court administrator a statement showing the name 
 and address of the taxpayer, if known, an itemized summary of 
 the taxable periods and the type of tax, the tax due and unpaid 
 and the interest and penalties due with respect thereto under 
 the provisions of law applicable to the tax, and shall contain a 
 prayer that the court adjudge the taxpayer to be indebted on 
 account of the taxes, interest, and penalties in the amount 
 specified in the statement; a copy of the statement shall be 
 furnished to the court administrator therewith.  The court 
 administrator shall mail a copy of the statement by certified 
 mail to the taxpayer at the address given in the return, if any; 
 and to the taxpayer's last known address, within five days after 
 the same is filed, except that, if the taxpayer's address is not 
 known, notice shall be made by posting a copy of the statement 
 for ten days in the place in the courthouse where public notices 
 are regularly posted.  To litigate the claim, or any part of it, 
 the taxpayer shall serve an answer upon the commissioner on or 
 before the 20th day after the date of mailing the statement; or, 
 if notice has been given by posting, on or before the 20th day 
 after the expiration of the period during which the notice was 
 required to be posted.  If no answer is served within the 
 specified time, the court administrator, upon the filing of an 
 affidavit of default, shall enter judgment for the state in the 
 amount prayed for, plus costs of $10.  If an answer is filed, 
 the issues raised shall stand for trial as soon as possible 
 after the filing of the answer, and the court shall determine 
 the issues and direct judgment accordingly; and, if the taxes, 
 interest, or penalties are sustained to any extent over the 
 amount rendered by the taxpayer, shall assess $10 costs against 
 the taxpayer.  The court shall disregard all technicalities and 
 matters of form not affecting the substantial merits.  The 
 commissioner may call upon the county attorney or the attorney 
 general to conduct the proceedings on behalf of the state.  If a 
 proceeding is referred to a county attorney, and the county 
 attorney fails to issue or cause to be issued an indictment or 
 criminal complaint within 30 days after the referral by the 
 commissioner, the attorney general may conduct the proceeding.  
 Execution shall be issued upon the judgment at the request of 
 the commissioner, and the execution shall, in all other 
 respects, be governed by the laws applicable to executions 
 issued on judgments.  Only the homestead and household goods of 
 the judgment debtor shall be exempt from seizure and sale upon 
 the execution.  

    In addition to the procedure in this subdivision, legal 
 action may be commenced by the commissioner in district court in 
 the same manner or venue as any other civil action. 

    Subd. 2.    Appeals.  Either party to an action or a 
 judgment for the recovery of any taxes, interest, or penalties 
 under subdivision 1 may appeal the judgment as in other civil 
 cases. 

    Subd. 3.    Tax presumed valid.  The tax, as assessed by 
 the commissioner, with any penalties included therein, shall be 
 presumed to be valid and correctly determined and assessed, and 
 the burden shall be upon the taxpayer to show its incorrectness 
 or invalidity.  A statement filed by the commissioner showing 
 the amount of the tax and penalties as determined or assessed by 
 the commissioner, is admissible in evidence and shall establish 
 prima facie the facts set forth therein.  

    Subd. 4.    Confession of judgment.  (a) The 
 commissioner may, within 3-1/2 years after any return or report 
 is filed, notwithstanding section 541.09, enter judgment on any 
 confession of judgment contained in the return or report after 
 ten days' notice served upon the taxpayer by mail at the address 
 shown in the return or report.  The judgment shall be entered by 
 the court administrator of district court upon the filing of a 
 photocopy or similar reproduction of that part of the return or 
 report containing the confession of judgment along with a 
 statement of the commissioner or an agent that the tax has not 
 been paid.  The commissioner may prescribe the words for the 
 confession of judgment statement contained on the return or 
 report.  

    (b) Notwithstanding any other provision of the law to the 
 contrary, the commissioner may, within five years after a 
 written agreement is signed by the taxpayer and the commissioner 
 under the provisions of section 270.67, subdivision 2, enter 
 judgment on the confession of judgment contained within the 
 agreement after ten days' notice served upon the taxpayer at the 
 address shown in the agreement.  Such judgment shall be entered 
 by the court administrator of district court upon the filing of 
 the agreement or a certified copy thereof along with a statement 
 of the commissioner or an agent that the tax has not been paid.  

    HIST: 1982 c 523 art II s 7; 1983 c 247 s 118; 1985 c 101 s 
 4,5; 1Sp1985 c 14 art 1 s 6; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 
 1990 c 480 art 2 s 7,8; 1990 c 594 art 1 s 63; 1991 c 291 art 16 
 s 3; 1997 c 84 art 5 s 3