Federal conformity
Updated January 2023
Legislators debated and passed a federal conformity during the first week of the legislative session. Their quick action was followed by Gov. Walz signing the conformity bill on Jan. 12.
The issue
Minnesota is a static conformity state and will need to pass additional legislation if Congress makes any additional changes during the filing season.
The state’s budget forecast shows projected $17.6 billion surplus through June 30, 2023. A surplus provides an opportunity for leaders con consider additional changes to address issues such as bonus depreciation and estate tax conformity.
CPAs will have many opportunities to advocate for further conformity, help legislators understand its importance to taxpayers and identify issues still needing clarification.
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
With the help of your donations to the MNCPA PAC, we have had great success at the Capitol throughout the past decade.
Reasons to contribute:
- Carry a unified message on CPA issues to legislators.
- Raise CPAs' visibility at the Capitol.
- Continue the proven track record of success.
Contribute to the PAC
