Federal conformity

Updated July 2019

The Tax Cuts and Jobs Act of 2017 (TCJA) created several new nonconforming provisions in Minnesota’s tax code. The 2019 tax bill made some conforming changes.

The issue

The TCJA created new uncertainty and new opportunities for federal conformity. Legislative leaders understand the impact of nonconformity and made it a top priority in 2019.

Nonconformity continues to frustrate not only CPAs but also the businesses you work for and the clients you represent. The MNCPA has advocated for simplicity and federal conformity. Past efforts have resulted in some but not full conformity.

Minnesota’s tax code is closer to conformity, but many differences still exist. The MNCPA will continue to help legislators and Gov. Walz understand the importance of additional simplicity.

The state’s budget has been stable and has had a surplus for the past four years. CPAs will have many opportunities to advocate for further conformity, help legislators understand its importance to taxpayers and identify issues still needing clarification.

Senate tax bill summary

House tax bill summary

Why you should care

  • Tax policy that is easy to understand increases taxpayer compliance and helps create a more efficient process for all involved.
  • Tax law that is hard to understand causes unintentional noncompliance and leads to more administrative burdens for the state. Many people who do not use a CPA may not know about not conforming tax laws and, therefore, may not submit a correct tax return or receive a benefit to which they are entitled.

What can you do

Contact your legislators and educate them on how Minnesota's tax laws are impacting your business and your clients.

Encourage them to support federal conformity legislation.

Influencing positive change

MN State Capitol

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  • Carry a unified message on CPA issues to legislators.
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