Communications the key to our sustainable relationship
Advocacy
Robert Doty, Minnesota Department of Revenue commissioner | June/July 2021 Footnote
Editor's note: Updated May 27, 2021
With another challenging income tax filing season in the books, I want to thank the MNCPA and its members for the work you do on behalf of your clients. Each year, most taxpayers file and pay their taxes accurately and on time, and your efforts help make that possible.
The Department of Revenue aims to provide the information, tools and guidance you need to serve your clients — and, by extension, all Minnesotans. We rely on your feedback and questions to help us improve. This month, I wanted to answer some recent MNCPA questions about our partnership.
The MNCPA and its members have a strong working relationship with Revenue. Are there things the society and its members should focus on to facilitate meaningful discussions and continue a successful partnership, while still advocating for clients and businesses?
Our partnership works both ways. It’s important for us to provide resources and people, at all levels, to work with you. I encourage you to reach out to our divisions when you have questions or need to resolve an issue about a specific tax type.
- For questions about preparing or filing a return, our customer service representatives are a great resource and the best place to start. You’ll find a list of contacts at www.revenue.state.mn.us/about-us.
- For questions during an audit, you can contact the auditor or their supervisor directly using the contact information in our letters or notices.
- For technical questions about recent law changes, email us at TaxLawChanges@state.mn.us.
- For deeper policy questions or issues, you can reach out to our division leadership for the relevant tax. Enter “divisions” into the search box on our home page to get started.
Also, Mark Krause, our tax professional outreach coordinator, is available to help answer questions and connect you with resources. You can reach Mark at
taxpro.outreach@state.mn.us.
With respect to process and relationships with stakeholders, MNCPA members have shared what appears to be a gradual shift from Revenue staff providing advance guidance and toward resolving issues after they arise. What can CPAs and their clients do so Revenue can provide this guidance to help avoid potential misunderstandings, disagreements and litigation?
Providing guidance about tax laws, policies and updates is a crucial part of our job — both for us at Revenue and for you as tax representatives to your clients. It’s no small challenge for any of us in today’s ever-changing tax landscape. We do our best at Revenue to provide the information and other resources you need to prepare accurate tax returns. We offer updates, Revenue Notices and other guidance through our website, email bulletins, classes and webinars, and other outreach efforts.
We also respond to many questions each year; though, given the near-infinite number of variables, we cannot always give answers that address all possible tax situations. When that happens, we appreciate the flexibility of the CPA community as we navigate those issues together. It’s always more efficient to avoid audits or litigation. Please know that’s a goal we share with you even if it’s not always possible.
A concern for all industries is losing institutional knowledge when the workforce turns over due to retirements or other transitions. How can Revenue work to not only maintain the knowledge of law and process, but also help establish new relationships with tax advisers and preparers?
Like most organizations, the department is hiring more early- to mid-career workers as people retire or move on to other opportunities. In response, we’re emphasizing:
- Succession planning for key positions.
- Recruiting workers early in their careers.
- Providing more training and development opportunities.
- Building a diverse team to ensure we’re meeting the needs of all Minnesotans.
We emphasize communications, teamwork and other “soft” skills — in addition to technology, tools and continuing education — to help our team build tax knowledge and relationships at Revenue and with our customers.
Are there trends (either positive or negative) that Revenue is seeing when working with CPAs? Are there steps CPAs can take to eliminate the negative trends or expand on the positive trends?
We have stepped up our outreach to CPAs in the last couple of years and, despite the challenges posed by COVID-19 and its effect on public life, I think it’s helping all of us. Our tax professional liaison, Mark Krause, reports that he’s received many more questions from CPAs during this year’s filing season than ever before. We appreciate that more of you are reaching out this way before filing to help avoid the need for tax return adjustments or audits.
As we get to know more of you at events or through your questions, I anticipate we will build on this momentum, which can only strengthen our partnership. Meanwhile, please contact us any time you have questions or need additional guidance and we’ll do our best to help.
Robert Doty is the commissioner of the Minnesota Department of Revenue.
