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Chapter 270C
Section 270C.70
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This is an historical version of this statute chapter. Also view the most recent published version.
270C.70 PERSONAL LIABILITY FOR FAILURE TO HONOR A LEVY.
Subdivision 1. Surrender of property subject to levy. A person who fails or refuses to
surrender property or rights to property subject to a levy served on the person under section
270C.67, 270C.68, or 270C.69 is liable in an amount equal to the value of the property or rights
not surrendered, or the amount of taxes, penalties, and interest for the collection of which the
levy was made, whichever is less. A financial institution need not surrender funds on deposit until
ten days after service of the levy.
Subd. 2. Penalty. In addition to the personal liability imposed by subdivision 1, if a person
required to surrender property or rights to property fails to do so without reasonable cause, the
person is liable for a penalty equal to 25 percent of the amount under subdivision 1.
Subd. 3. Person defined. The term "person" as used in this section includes an officer or
employee of a corporation, or a member or employee of a partnership, who as such officer,
employee, or member is under a duty to surrender the property or rights to property or to respond
to the levy.
Subd. 4. Order assessing liability. The liability imposed by this section may, after demand
to honor a levy has been made, be assessed by the commissioner within 60 days after service of
the demand. The assessment may be based on information available to the commissioner. The
assessment is presumed to be valid, and the burden is on the person assessed to show it is incorrect
or invalid. An order assessing liability for failure to honor a levy is reviewable administratively
under section 270C.35, and is appealable to Tax Court under chapter 271. The amount assessed,
plus interest at the rate specified in section 270C.40, may be collected by any remedy available
to the commissioner for the collection of taxes. The proceeds collected are applied first to the
liability of the original taxpayer to the extent of the liability under subdivision 1 plus interest,
and then to the penalty under subdivision 2.
History: 2005 c 151 art 1 s 76
Subdivision 1. Surrender of property subject to levy. A person who fails or refuses to
surrender property or rights to property subject to a levy served on the person under section
270C.67, 270C.68, or 270C.69 is liable in an amount equal to the value of the property or rights
not surrendered, or the amount of taxes, penalties, and interest for the collection of which the
levy was made, whichever is less. A financial institution need not surrender funds on deposit until
ten days after service of the levy.
Subd. 2. Penalty. In addition to the personal liability imposed by subdivision 1, if a person
required to surrender property or rights to property fails to do so without reasonable cause, the
person is liable for a penalty equal to 25 percent of the amount under subdivision 1.
Subd. 3. Person defined. The term "person" as used in this section includes an officer or
employee of a corporation, or a member or employee of a partnership, who as such officer,
employee, or member is under a duty to surrender the property or rights to property or to respond
to the levy.
Subd. 4. Order assessing liability. The liability imposed by this section may, after demand
to honor a levy has been made, be assessed by the commissioner within 60 days after service of
the demand. The assessment may be based on information available to the commissioner. The
assessment is presumed to be valid, and the burden is on the person assessed to show it is incorrect
or invalid. An order assessing liability for failure to honor a levy is reviewable administratively
under section 270C.35, and is appealable to Tax Court under chapter 271. The amount assessed,
plus interest at the rate specified in section 270C.40, may be collected by any remedy available
to the commissioner for the collection of taxes. The proceeds collected are applied first to the
liability of the original taxpayer to the extent of the liability under subdivision 1 plus interest,
and then to the penalty under subdivision 2.
History: 2005 c 151 art 1 s 76
Official Publication of the State of Minnesota
Revisor of Statutes