Enrolled agents expressly excluded from debt settlement statutes

In 2016, the Legislature took action targeting bad actors in the debt settlement field who were unqualified and unable to fulfill their promise of settling a tax debt. Some took payment upfront and failed to follow through.

A new law, effective Aug. 1, 2022, clarifies that professional firms and enrolled agents – those federally recognized to provide tax services – are not debt settlement providers and do not fall under statutes regulating that industry.

Rep. Andrew Carlson (DFL-Bloomington) and Sen. Jeff Howe (R-Rockville) sponsor the law.

HF2342/SF1391*/CH67

SF1391* / HF2342 / CH67