Things to watch for this filing season
Advocacy
Robert Doty, Minnesota Department of Revenue commissioner | April/May 2022 Footnote
Editor's note: Updated March 29, 2022
Spring is a busy time for the Minnesota Department of Revenue and our partners like the MNCPA. The individual income tax due date is approaching fast. And state policymakers are discussing a wide range of potential tax law changes as we move toward the end of this year’s legislative session.
The relationships Revenue enjoys with the MNCPA and other partners help all of us through this particularly challenging time of year — though we rely on tax professionals like you every day.
We appreciate the care and knowledge you bring to the task of serving your clients. Our Revenue team works hard to provide the resources you need to help them file and pay correctly while also receiving the refunds and other tax benefits they deserve.
This year, we expect to process more than 3 million individual returns — many with flow-through business income from partnerships or S Corporations — and issue more than 2 million refunds. We’ll also process nearly 35,000 corporate franchise tax returns, and sales tax returns for about 170,000 businesses, among others.
Many of these families and businesses count on your diligence and hard work, just as we do. So, on behalf of Revenue, thank you for another successful filing season and for the services you provide all year long.
Common filing issues
We strive to process tax returns, payments and refunds as quickly as possible once we receive them. But some returns require extra attention or adjustments on our end. Sometimes we may also need to request more information or verification from a taxpayer, or their return needs to be amended. Examples include:
- Incorrect names or Social Security numbers for filers or their dependents.
- Math errors or incorrect amounts for withholding or estimated tax payments.
- Not amending a Minnesota income tax return after changes to a filer’s federal return.
- Not amending a property tax refund return after changes to a filer’s federal or state income tax return.
- Filing a property tax refund return without a Certificate of Rent Paid (for renters), or forgetting to indicate if they are a renter, homeowner, mobile homeowner or nursing home resident.
As tax preparers, you can help your clients avoid processing delays, adjustments or tax orders by double-checking names and other taxpayer information, and by making sure they have provided all their W-2, 1099 and other financial information. It’s especially important to verify that tax withholding amounts and estimated payments are accurate.
Reporting the wrong amount for estimated payments is a common issue that results in processing delays or adjustments on an income tax return.
For individuals, you can call our taxpayer assistance line at 651-296-3781 to get payment dates and amounts for the previous year. But — since the return has not been filed yet — you need to have a power of attorney on file with us or your client on the phone when you call. For businesses, estimated payments should be available in your client’s e-Services account.
Failing to amend a filer’s Minnesota return to reflect changes on their federal return is another common issue that can result in additional tax owed, plus penalties and interest. If you amend a client’s federal return or it is adjusted by the IRS, you have 180 days to let us know about the federal changes:
- If the changes affect their Minnesota return: File an amended return, even if the changes do not affect their refund or amount due. Pay any additional tax due when you file the amended return to avoid a late-payment penalty.
- If the changes do not affect their Minnesota return: Send us a letter of explanation about the federal changes and why they do not affect the state return.
You can find more information on our website at www.revenue.state.mn.us. Search with keyword
amended return for individual taxes or look under the appropriate business tax type.
Legislative session
Though 2022 is not a budgeting year, taxes are a hot topic at the Capitol during this year’s legislative session. We are tracking a wide range of potential tax law changes proposed by Gov. Tim Walz and state lawmakers.
A strong budget surplus — projected at $9.25 billion in the February state budget forecast — represents an opportunity to provide tax relief for middle-class Minnesotans and small businesses while making other important investments in our state’s future and those who will help build it.
We’ll provide updates and guidance on any law or policy changes that affect your work after the legislative session. Meanwhile, I encourage you to subscribe to our email updates or follow us on social media to get the latest information. To get started, look under Connect With Us at the bottom of our homepage.
Thank you for your partnership.
Robert Doty is commissioner of the Minnesota Department of Revenue.
