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