1999 Minnesota Statutes

     270.67 Agreements regarding tax liability or extension 
  of payment of tax. 

    Subdivision 1.    Liability agreements.  The 
 commissioner of revenue, or any officer or employee of the 
 department of revenue authorized in writing by the commissioner, 
 is authorized to enter into an agreement in writing with any 
 taxpayer, or duly authorized agent or representative of the 
 taxpayer, relating to the liability of the taxpayer in respect 
 of any state tax administered by the commissioner for any 
 taxable period ending prior to the date of the agreement.  The 
 agreement shall be final and conclusive and, except upon a 
 showing of fraud or malfeasance, or misrepresentation of a 
 material fact, the case shall not be reopened as to the matters 
 agreed upon, or the agreement modified, by any officer, 
 employee, or agent of the state; and, in any suit, action, or 
 proceeding, the agreement, or any determination, assessment, 
 collection, payment, abatement, refund, or credit made in 
 accordance with the agreement, shall not be annulled, modified, 
 set aside, or disregarded.  

    Subd. 2.    Extension agreements.  When any portion of 
 any tax payable to the commissioner of revenue together with 
 interest and penalty thereon, if any, has not been paid, the 
 commissioner may extend the time for payment for a further 
 period.  When the authority of this section is invoked, the 
 extension shall be evidenced by written agreement signed by the 
 taxpayer and the commissioner, stating the amount of the tax 
 with penalty and interest, if any, and providing for the payment 
 of the amount in installments.  The agreement may contain a 
 confession of judgment for the amount and for any unpaid portion 
 thereof and shall provide that the commissioner may forthwith 
 enter judgment against the taxpayer in the district court of the 
 county of residence as shown upon the taxpayer's tax return for 
 the unpaid portion of the amount specified in the extension 
 agreement.  The agreement shall provide that it can be 
 terminated, after notice by the commissioner, if information 
 provided by the taxpayer prior to the agreement was inaccurate 
 or incomplete, collection of the tax covered by the agreement is 
 in jeopardy, there is a subsequent change in the taxpayer's 
 financial condition, the taxpayer has failed to make a payment 
 due under the agreement, or has failed to pay any other tax or 
 file a tax return coming due after the agreement.  The notice 
 must be given at least 14 calendar days prior to termination, 
 and shall advise the taxpayer of the right to request a 
 reconsideration from the commissioner of whether termination is 
 reasonable and appropriate under the circumstances.  A request 
 for reconsideration does not stay collection action beyond the 
 14-day notice period.  If the commissioner has reason to believe 
 that collection of the tax covered by the agreement is in 
 jeopardy, the commissioner may proceed under sections 270.70, 
 subdivision 2, paragraph (b), and 270.274, and terminate the 
 agreement without regard to the 14-day period.  The commissioner 
 may accept other collateral the commissioner considers 
 appropriate to secure satisfaction of the tax liability.  The 
 principal sum specified in the agreement shall bear interest at 
 the rate specified in section 270.75 on all unpaid portions 
 thereof until the same has been fully paid or the unpaid portion 
 thereof has been entered as a judgment.  The judgment shall bear 
 interest at the rate specified in section 270.75.  If it appears 
 to the commissioner that the tax reported by the taxpayer is in 
 excess of the amount actually owing by the taxpayer, the 
 extension agreement or the judgment entered pursuant thereto 
 shall be corrected.  If after making the extension agreement or 
 entering judgment with respect thereto, the commissioner 
 determines that the tax as reported by the taxpayer is less than 
 the amount actually due, the commissioner shall assess a further 
 tax in accordance with the provisions of law applicable to the 
 tax.  The authority granted to the commissioner by this section 
 is in addition to any other authority granted to the 
 commissioner by law to extend the time of payment or the time 
 for filing a return and shall not be construed in limitation 
 thereof. 

    Subd. 3.    Consent agreement.  A taxpayer shall have 
 the right at any time, whether or not an order has been issued, 
 to sign and deliver to the commissioner a written consent to a 
 change in tax liability which waives the requirement of any 
 additional notice and all rights of appeal to the tax court 
 concerning the assessment and collection of any part or all of 
 the tax liability. 

    Subd. 4.    Offer-in-compromise and installment payment 
 program.  (a) In implementing the authority provided in 
 subdivision 1 or in section 8.30 to accept offers of installment 
 payments or offers-in-compromise of tax liabilities, the 
 commissioner of revenue shall prescribe guidelines for employees 
 of the department of revenue to determine whether an 
 offer-in-compromise or an offer to make installment payments is 
 adequate and should be accepted to resolve a dispute.  In 
 prescribing the guidelines, the commissioner shall develop and 
 publish schedules of national and local allowances designed to 
 provide that taxpayers entering into a compromise or payment 
 agreement have an adequate means to provide for basic living 
 expenses.  The guidelines must provide that the taxpayer's 
 ownership interest in a motor vehicle, to the extent of the 
 value allowed in section 550.37, will not be considered as an 
 asset; in the case of an offer related to a joint tax liability 
 of spouses, that value of two motor vehicles must be excluded.  
 The guidelines must provide that employees of the department 
 shall determine, on the basis of the facts and circumstances of 
 each taxpayer, whether the use of the schedules is appropriate 
 and that employees must not use the schedules to the extent the 
 use would result in the taxpayer not having adequate means to 
 provide for basic living expenses.  The guidelines must provide 
 that: 

    (1) an employee of the department shall not reject an 
 offer-in-compromise or an offer to make installment payments 
 from a low-income taxpayer solely on the basis of the amount of 
 the offer; and 

    (2) in the case of an offer-in-compromise which relates 
 only to issues of liability of the taxpayer: 

    (i) the offer must not be rejected solely because the 
 commissioner is unable to locate the taxpayer's return or return 
 information for verification of the liability; and 

    (ii) the taxpayer shall not be required to provide an 
 audited, reviewed, or compiled financial statement. 

    (b) The commissioner shall establish procedures: 

    (1) that require presentation of a counteroffer or a 
 written rejection of the offer by the commissioner if the amount 
 offered by the taxpayer in an offer-in-compromise or an offer to 
 make installment payments is not accepted by the commissioner; 

    (2) for an administrative review of any written rejection 
 of a proposed offer-in-compromise or installment agreement made 
 by a taxpayer under this section before the rejection is 
 communicated to the taxpayer; 

    (3) that allow a taxpayer to request reconsideration of any 
 written rejection of the offer or agreement to the commissioner 
 of revenue to determine whether the rejection is reasonable and 
 appropriate under the circumstances; and 

    (4) that provide for notification to the taxpayer when an 
 offer-in-compromise has been accepted, and issuance of 
 certificates of release of any liens imposed under section 
 270.69 related to the liability which is the subject of the 
 compromise. 

    HIST: 1982 c 523 art 2 s 6; 1985 c 210 art 1 s 6; 1986 c 444; 
 1990 c 480 art 2 s 5,6; 1997 c 84 art 6 s 11; 1998 c 389 art 16 
 s 12; 1999 c 243 art 16 s 6