When a debtor does not voluntarily pay a debt, enforced collection action is used by the Minnesota Department of Revenue in an attempt to collect the debt. A levy (also referred to as Levy and Distraint) is an administrative collection tool. It gives a collector with delegated authority the power to take property and the rights to obtain property from a person owing a tax or other agency debt. This includes levies against wages, bank accounts, investment accounts, cash, rents and other real property and personal property.
Minn. Stat. §270C.67 authorizes the use of Levy and Distraint to seize property other than wages. It is served on a third party holding the property; examples of third parties are banks, investment companies and individuals or companies that owe compensation other than wages to a debtor.
Minn. Stat. §270C.7101 gives the Commissioner of Revenue the authority to require an investment company to liquidate a debtor’s securities and transfer the proceeds to the department.
Minn. Stat. §270C.69 Subd. 1 gives the Commissioner of Revenue the authority to require an employer to withhold an amount from an employee’s wages in addition to the regular withholding deduction.
For other agency debts, Minn. Stat. §16.D.08 Subd. 2A and 2B gives the Minnesota Department of Revenue the authority to use administrative collection tools allowed for tax debts without first obtaining a judgment.
The following posts give review the different types of levies that may be used by the Minnesota Department of Revenue to collect an unpaid debt. The following posts do not provide legal advice. When faced with a levy, you should consult with an experienced Minnesota tax attorney.