MNCPA submits amicus brief to the Minnesota Supreme Court
March 31, 2023 | Geno Fragnito
Tax professionals and businesses often rely on Tax Court rulings when deciding what position to take on future tax questions.
Consistent application of the law and guidance from tax administrators is required so taxpayers can properly comply with the laws. Tax Court rulings often are the result of a taxpayer and the Minnesota Department of Revenue disagreeing on how a law applies.
The CPA’s role as a trusted business and community adviser is well-known and based on guidance provided because of a thorough understanding of very complex state and federal tax codes. Through this role, you may find yourself in a situation where the tax code may be gray and needs interpretation. One place you seek clarification is through a Tax Court case.
In recent years, there have been some questions about whether Tax Court decisions where it ruled in favor of the taxpayer are precedential and binding on the DOR. If the cases are not precedential and binding, how can CPAs be sure they are applying the law correctly?
Cities Management Inc. v. Commissioner of Revenue
One way the MNCPA supports our members is through advocacy on behalf of the profession and working to educate policymakers to understand the effects of the tax laws they pass. This occasionally includes providing insight to the Minnesota Supreme Court as it deliberates a case.
Recently, the MNCPA submitted a brief as amicus curiae to urge the Court to determine that Minnesota Tax Court decisions serve as binding precedent upon the Revenue commissioner in the Cities Management Inc. v. Commissioner of Revenue case.
Taxpayers should be able to rely on Tax Court interpretations of the law as they file taxes and should not be left to wonder if tax administrators will decide to follow or not follow a Tax Court decision the taxpayer was using as the basis for taking a position.
Clear guidance on the frontend is much better policy for all involved.
Topics: Legislative & Government Affairs, Taxation-Individual, Taxation-Business
Geno Fragnito
Geno Fragnito is the MNCPA government relations director, advocating on behalf of the CPA profession. His days consist of last-minute meeting changes, building relationships with lawmakers, helping CPAs navigate state government, and putting in more than 15,000 steps per day walking the halls of the Capitol. Geno unwinds with a little golf and traveling with his family. If he weren’t a lobbyist, Geno would perfect his cast and be a professional fisherman. Geno can be reached at 952-885-5550 or gfragnito@mncpa.org.
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