2006 Minnesota Statutes

270C.69 WITHHOLDING BY EMPLOYER OF DELINQUENT TAXES.
    Subdivision 1. Notice and procedures. (a) The commissioner may, within five years after
the date of assessment of the tax, or if a lien has been filed under section 270C.63, within the
statutory period for enforcement of the lien, give notice to any employer deriving income which
has a taxable situs in this state regardless of whether the income is exempt from taxation, that an
employee of that employer is delinquent in a certain amount with respect to any taxes, including
penalties, interest, and costs. The commissioner can proceed under this section only if the tax is
uncontested or if the time for appeal of the tax has expired. The commissioner shall not proceed
under this section until the expiration of 30 days after mailing to the taxpayer, at the taxpayer's last
known address, a written notice of (1) the amount of taxes, interest, and penalties due from the
taxpayer and demand for their payment, and (2) the commissioner's intention to require additional
withholding by the taxpayer's employer pursuant to this section. The effect of the notice shall
expire one year after it has been mailed to the taxpayer provided that the notice may be renewed
by mailing a new notice which is in accordance with this section. The renewed notice shall have
the effect of reinstating the priority of the original claim. The notice to the taxpayer shall be in
substantially the same form as that provided in section 571.72. The notice shall further inform the
taxpayer of the wage exemptions contained in section 550.37, subdivision 14. If no statement
of exemption is received by the commissioner within 30 days from the mailing of the notice,
the commissioner may proceed under this section. The notice to the taxpayer's employer may
be served by mail or by delivery by an agent of the department and shall be in substantially the
same form as provided in section 571.75. Upon receipt of notice, the employer shall withhold
from compensation due or to become due to the employee, the total amount shown by the notice,
subject to the provisions of section 571.922. The employer shall continue to withhold each pay
period until the notice is released by the commissioner under section 270C.7109. Upon receipt of
notice by the employer, the claim of the state of Minnesota shall have priority over any subsequent
garnishments or wage assignments. The commissioner may arrange between the employer and the
employee for withholding a portion of the total amount due the employee each pay period, until
the total amount shown by the notice plus accrued interest has been withheld.
(b) The "compensation due" any employee is defined in accordance with the provisions of
section 571.921. The maximum withholding allowed under this section for any one pay period
shall be decreased by any amounts payable pursuant to a garnishment action with respect to which
the employer was served prior to being served with the notice of delinquency and any amounts
covered by any irrevocable and previously effective assignment of wages; the employer shall give
notice to the commissioner of the amounts and the facts relating to such assignments within ten
days after the service of the notice of delinquency on the form provided by the commissioner as
noted in this section.
(c) Within ten days after the expiration of such pay period, the employer shall remit to the
commissioner, on a form and in the manner prescribed by the commissioner, the amount withheld
during each pay period under this section.
    Subd. 2. Termination of employment. If the employee ceases to be employed by the
employer before the full amount set forth in a notice of delinquency plus accrued interest has been
withheld, the employer shall immediately notify the commissioner in writing of the termination
date of the employee and the total amount withheld. No employer may discharge any employee
by reason of the fact that the commissioner has proceeded under subdivision 1. If an employer
discharges an employee in violation of this provision, the employee shall have the same remedy
as provided in section 571.927, subdivision 2.
    Subd. 3. Application to government employer. Subdivisions 1 and 2 apply to cases in which
the employer is the United States or any instrumentality thereof or this state or any municipality
or other subordinate unit thereof. The provisions imposing liability on the employer for failure to
withhold or remit under section 270C.70 do not apply to such government employers.
    Subd. 4. Refund to employee. The commissioner shall refund to the employee excess
amounts withheld from the employee under this section. If any excess results from payments by
the employer because of payments made under section 270C.70, the excess attributable to the
employer's payment shall be refunded to the employer.
    Subd. 5. Additional interest, costs, charges. Employers required to withhold delinquent
taxes, penalties, interest, and costs under this section shall not be required to compute any
additional interest, costs or other charges to be withheld.
    Subd. 6. Legal effect. The collection remedy provided to the commissioner by this section
shall have the same legal effect as if it were a levy made pursuant to section 270C.67.
History: 2005 c 151 art 1 s 75