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Federal conformity

Updated Jan. 19, 2022

The Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, provided economic assistance to families and small businesses affected by the pandemic. A major component of this federal legislation was the Paycheck Protection Program (PPP), which provides forgivable loans small businesses need to pay employees and cover expenses throughout the pandemic.  

The issue

Minnesota is a static conformity state and has not adopted the many changes Congress has passed since 2018. Without additional conformity, Minnesota taxpayers face an increasingly more complex tax return along with additional compliance costs.   

The state’s budget forecast shows a surplus through June 30, 2022. A surplus provides an opportunity for leaders to pass a conformity bill, provide certainty as 2021 tax returns are prepared and future planning decisions are made and reduce complexity.

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

MN State Capitol

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