Challenge, change and partnership
Advocacy
Robert Doty, Minnesota Department of Revenue commissioner | December 2020/January 2021 Footnote
Editor's note: Updated November 30, 2020
As the Minnesota Department of Revenue prepares for the 2021 tax season, we know it will be a unique year for everyone in the tax community. We’re committed to working with you and your clients to continue to fund Minnesota’s future through these challenges.
As the new Revenue commissioner, I’d like to share a little bit about my background. I previously served as Revenue’s assistant commissioner for tax policy and public engagement (since 2019). In that capacity — and during three decades as an accountant and finance leader — I’ve seen how the department’s partnership with the MNCPA and other groups benefits our state.
We rely on you in our work to administer the state tax system, which helps fund a range of public services for Minnesota residents and businesses.
Challenging year
This year, many people and businesses have faced unemployment, closures and falling incomes due to the stark impact of the COVID-19 pandemic — and measures to slow its spread — on our economy.
Our federal, state and local governments responded with a range of financial assistance that may affect many income and business tax returns. While these programs provided necessary relief from this historic pandemic, they will make for a busy and complex filing season in 2021.
In addition, Minnesota tax laws were changed to provide conformity with federal business expensing rules under Section 179 of the Internal Revenue Code (IRC). Signed into law Oct. 21, 2020, this update includes:
- Full conformity for all Section 179 expensing for tax year 2020 and beyond.
- Retroactive conformity to Section 179 for tax years 2017, 2018 and 2019 for certain business property acquired in a like-kind exchange under Section 1031 of the IRC.
These changes may affect taxpayers who made additions or claim related subtractions for Section 179 expensing.
We recognize the challenges you face and are working hard to provide the information, tools and systems Minnesotans rely on to understand and meet their tax obligations. For example:
- We’ve upgraded the department’s online services to be more intuitive and user-friendly. This recent update includes e-Services for Business, Where’s My Refund and 1099-G Lookup, among others.
- We’ve updated state tax forms and instructions for tax year 2020 based on current law. We also updated 2017–19 forms to reflect the retroactive Section 179 update.
- We’ll continue to update our website — and reach out through other channels — if there are new federal or state law changes, or as more information becomes available.
Visit our website for more information, updates to forms and other resources (
www.revenue.state.mn.us/tax-law-changes). You can also subscribe to email updates to receive our latest bulletins and updates. To start or update your subscriptions, enter your email address in the field at the bottom of any page on the site.
Transitions
Our partnership is built on many relationships between Revenue and the MNCPA, though the faces may change — as is happening now.
First, I’m honored that Gov. Tim Walz appointed me to lead the department. I share his vision for One Minnesota. As commissioner, my top priority is to provide a fair and transparent revenue system to help plan for Minnesota’s future.
Next, please join me in welcoming our newest assistant commissioner, Sarah Bronson, who brings a strong focus on customer service and relationships — and a legal background — to the job. (She succeeds Cynthia Rowley, who retired in September after 18 years with the department.)
Sarah joined Revenue in 2017 as the taxpayer rights advocate, advising agency leadership to create policies and procedures that address the needs of taxpayers. Before that, she was director of the Mid-Minnesota Legal Aid Low Income Taxpayer Clinic.
Finally, I want to recognize my predecessor, Cynthia Bauerly. She left Revenue in October after six years as commissioner — the longest stint in our history. Cynthia was a strong advocate for the department, our customers and partners.
I look forward to building on our recent work to strengthen relationships with the MNCPA and other organizations while broadening the department’s outreach and education initiatives.
This year has brought unprecedented challenges to our state and it has been gratifying to see how the department, the MNCPA and our other partners have risen to the occasion. On behalf of everyone at Revenue, thank you for your partnership.
Robert Doty is commissioner of the Minnesota Department of Revenue.
