HF2270

Purpose of the Bill

The purpose of this bill is to limit the authority of the Minnesota Department of Revenue to assess additional income, corporate franchise, and sales and use taxes under certain conditions. These conditions are intended to protect taxpayers who have relied on written guidance from the department.

Main Provisions

• Limitation on Tax Assessments: The bill outlines specific situations where the commissioner cannot assess additional taxes. It is designed to provide fairness when taxpayers have reasonably relied on official written advice from the department.
• Criteria for Protection: Tax assessments cannot be made if:
  • The taxpayer received erroneous advice in writing from a department employee acting in an official capacity.
  • The advice was relied upon reasonably in a tax order or was in response to a specific written request.
  • The taxpayer did not fail to provide adequate or accurate information.
  • The relevant tax law has not materially changed, and there has been no new court ruling or federal adjustment affecting the advice.
  • The commissioner has not issued any new revenue notice or directly informed the taxpayer in writing about a changed position on the issue.

Significant Changes to Existing Law

• New Subdivision: This bill adds a new subdivision to Minnesota Statutes 2024 section 270C.33, which imposes constraints on the department's ability to reassess taxes if the above conditions are met.
• Impact of Written Advice: It formally integrates the reliance on written department advice as a protective measure for taxpayers against later reassessments.

Relevant Terms

• Assessment
• Minnesota Department of Revenue
• Taxpayer Protection
• Erroneous Advice
• Written Guidance
• Statute and Administrative Rule
• Tax Order
• Audit