Uncollectible Debt | Minnesota Department of Revenue (2024)

When a debt becomesuncollectible,theMinnesotaDepartmentofRevenuemay stopactive collections on that debt. (See Minnesota Statute 16D.09.)

We determine a debt is uncollectible when:

• The statute of limitations has expired

• The debt is discharged in bankruptcy

• The liable debtor is deceased or indigent

• We made all reasonable collection efforts

• It costs more to collect the debt than the amount owed

• Your available income and assets are insufficient to pay

• It is not in the state’s best interest to pursue collection

We may continue to apply tax refunds for up to 10 years after a debt originated. After that time, we may remove the debt from our records.

If we are collecting debtfor another agency, we returnit to that agency.