https://minnesotalawyer.com/statutes/chapter-289a/Recent content in Chapter 289A — Application of Chapter on MinnesotaLawyer.comHugoen-ushttps://minnesotalawyer.com/statutes/chapter-289a/289a.01/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.01/This chapter sets the rules for how the Minnesota Department of Revenue handles income tax, property tax refunds, estate tax, and sales tax. It covers filing requirements, due dates, payments, penalties, and refunds for these taxes.https://minnesotalawyer.com/statutes/chapter-289a/289a.02/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.02/This section defines key terms used throughout the tax administration chapter, including ‘commissioner’ (the head of the Minnesota Department of Revenue), ’taxpayer’ (anyone who must file, pay, or collect a state tax), and ‘person’ (which includes individuals, businesses, and government agencies). It also specifies which version of the federal Internal Revenue Code Minnesota follows.https://minnesotalawyer.com/statutes/chapter-289a/289a.07/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.07/This section has been repealed. It is no longer in effect and has no current legal force.https://minnesotalawyer.com/statutes/chapter-289a/289a.08/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.08/This section explains who must file Minnesota income tax returns, including individuals, corporations, fiduciaries, partnerships, and mining companies. Married couples must file jointly or separately based on how they filed their federal return. The section also covers special rules for composite returns, pass-through entity taxes, and electronic filing requirements for tax preparers.https://minnesotalawyer.com/statutes/chapter-289a/289a.09/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.09/Employers who withhold income tax from employee wages must file quarterly returns with the state. This section also requires returns from entertainers, out-of-state contractors, and partnerships or S corporations that withhold tax. Employers must give each employee an annual statement (like a W-2) showing wages paid and taxes withheld by January 31.https://minnesotalawyer.com/statutes/chapter-289a/289a.10/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.10/An estate tax return must be filed with the state if a deceased person had property in Minnesota and either a federal estate tax return is required or the estate plus recent gifts exceeds the Minnesota threshold. The threshold increased over time and is now $3,000,000 for deaths occurring in 2020 and after.https://minnesotalawyer.com/statutes/chapter-289a/289a.11/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.11/Retailers with a sales tax permit must file regular sales tax returns. Businesses with small annual purchases may file an annual use tax return instead of monthly. People whose religious beliefs prevent them from using electronics may file paper returns by mail without extra fees.https://minnesotalawyer.com/statutes/chapter-289a/289a.12/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.12/This section requires various information returns to be filed with the Department of Revenue. Partnerships, S corporations, and fiduciaries must report income to their partners, shareholders, and beneficiaries. Businesses must report payments of wages, rents, royalties, interest, and dividends over certain thresholds. Brokers, agents, and trustees may also be required to report.https://minnesotalawyer.com/statutes/chapter-289a/289a.121/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.121/Tax shelters that involve Minnesota residents, property, or businesses must be registered with the Minnesota Department of Revenue. Material advisors must register, participants must disclose reportable transactions, and investor lists must be provided to the commissioner. These rules apply to transactions that the IRS considers reportable or listed transactions.https://minnesotalawyer.com/statutes/chapter-289a/289a.13/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.13/This section has been repealed. It is no longer in effect and has no current legal force.https://minnesotalawyer.com/statutes/chapter-289a/289a.14/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.14/This section defines terms related to illegal devices used to hide sales from tax authorities. A ‘zapper’ or automated sales suppression device is software that changes or deletes cash register records. ‘Phantom-ware’ is hidden programming built into a cash register that can manipulate or erase transaction data.https://minnesotalawyer.com/statutes/chapter-289a/289a.18/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.18/This section lists the due dates for all Minnesota tax returns. Individual income tax returns are due April 15. Corporate and partnership returns follow federal due dates. Withholding returns are due monthly or quarterly. Estate tax returns are due nine months after death. Sales tax returns are generally due by the 20th of the following month. Property tax refund claims are due August 15.https://minnesotalawyer.com/statutes/chapter-289a/289a.19/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.19/Taxpayers can get extensions to file their Minnesota tax returns. If you get a federal filing extension, it automatically extends your Minnesota filing deadline for income, corporate, and partnership returns. Estate tax extensions can be granted for up to 12 months. Sales tax returns generally cannot be extended.https://minnesotalawyer.com/statutes/chapter-289a/289a.20/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.20/This section sets the deadlines for paying Minnesota taxes. Income tax is due when the return is filed. Withholding tax deposits follow a schedule based on the amount owed, ranging from monthly to twice-monthly. Sales tax is due when the return is filed, with large retailers making an accelerated June payment. Estate tax is due nine months after death.https://minnesotalawyer.com/statutes/chapter-289a/289a.25/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.25/Individuals, trusts, S corporations, and partnerships must make estimated tax payments during the year if they expect to owe more than a certain amount. Payments are usually due in four installments on April 15, June 15, September 15, and January 15. The payments must be based on either the current year’s expected tax or the prior year’s actual tax.https://minnesotalawyer.com/statutes/chapter-289a/289a.26/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.26/Corporations must pay estimated franchise tax during the year if they expect their tax to exceed a minimum amount. Payments are due in quarterly installments. The minimum liability thresholds and calculation methods are tied to the corporation’s expected tax for the current year or actual tax from the prior year.https://minnesotalawyer.com/statutes/chapter-289a/289a.30/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.30/The commissioner can grant extensions for paying fiduciary income tax and corporate franchise tax. The commissioner can also extend the time for paying estate tax if paying on time would cause undue hardship, with extensions of up to 12 months. Sales tax payment extensions are also available.https://minnesotalawyer.com/statutes/chapter-289a/289a.31/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.31/This section establishes who is responsible for paying different types of taxes. Individual taxpayers, fiduciaries, corporations, and entertainment entities are each liable for their respective taxes. Employers who withhold taxes from wages are responsible for paying those withheld amounts. In joint returns, both spouses are jointly and individually liable.https://minnesotalawyer.com/statutes/chapter-289a/289a.33/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.33/Cannabis businesses that cannot get bank accounts because of their cannabis-related activities may be excused from the requirement to pay taxes electronically. The commissioner can waive electronic payment requirements on a case-by-case basis or publish a broader waiver if the banking access problem is widespread.https://minnesotalawyer.com/statutes/chapter-289a/289a.35/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.35/The commissioner can audit tax returns and adjust a taxpayer’s income, deductions, and credits to make them match Minnesota tax law. Filing a return is treated as a self-assessment of tax. The commissioner may also allow S corporations and partnerships to receive assessments and pay tax on behalf of their owners.https://minnesotalawyer.com/statutes/chapter-289a/289a.36/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.36/This section has been repealed. It is no longer in effect and has no current legal force.https://minnesotalawyer.com/statutes/chapter-289a/289a.37/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.37/The commissioner can assess taxes against joint filers and recover erroneous refunds. If a refund was issued by mistake, the excess amount is treated as a tax due that can be collected. This section also addresses assessment procedures for joint income tax returns.https://minnesotalawyer.com/statutes/chapter-289a/289a.38/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.38/The state generally has 3.5 years from when a return is filed to assess additional taxes. If more than 25% of gross income was left off the return, the period extends to 6.5 years. There is no time limit if no return was filed or if the return was fraudulent. Special rules apply to withholding tax, sales tax, and estate tax.https://minnesotalawyer.com/statutes/chapter-289a/289a.381/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.381/This section defines terms and establishes procedures for how changes to federal partnership audits affect Minnesota taxes. When the IRS adjusts a partnership’s federal return, those changes must be reported to Minnesota. The section defines key terms like ‘audited partnership,’ ‘direct partner,’ and ‘federal adjustments.’https://minnesotalawyer.com/statutes/chapter-289a/289a.382/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.382/When the IRS changes a partnership’s federal tax return, the partnership must report those changes to Minnesota and pay any additional tax owed. The partnership must designate a state partnership representative. Partners can elect to file amended returns individually, or the partnership can pay the tax on behalf of all partners.https://minnesotalawyer.com/statutes/chapter-289a/289a.39/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.39/Military service members get extra time to file tax returns and pay taxes. The deadlines for filing, paying, claiming refunds, and other tax actions are extended by the amount of time the person served in the armed forces during a combat zone or hazardous duty area, plus 180 days.https://minnesotalawyer.com/statutes/chapter-289a/289a.40/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.40/You must file a claim for a tax refund within 3.5 years of filing your return, or within one year after the tax was paid, whichever is later. If you agreed to extend the assessment period, you have six months after the extension ends to file a refund claim. Special rules apply when federal changes affect your Minnesota return.https://minnesotalawyer.com/statutes/chapter-289a/289a.41/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.41/When a person files for bankruptcy, the time the state has to assess or collect taxes is paused. The pause lasts from the date the bankruptcy petition is filed until 30 days after the state is notified that the bankruptcy case is closed or the automatic stay has ended. This applies to the bankrupt person and anyone else partially liable for the tax.https://minnesotalawyer.com/statutes/chapter-289a/289a.42/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.42/A taxpayer can agree in writing to extend the time the state has to assess additional taxes. This extension also extends the time to file a refund claim. The commissioner can enter into extension agreements of up to one year, and multiple extensions can be agreed to. Special rules apply to partnerships.https://minnesotalawyer.com/statutes/chapter-289a/289a.43/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.43/This section has been repealed. It is no longer in effect and has no current legal force.https://minnesotalawyer.com/statutes/chapter-289a/289a.50/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.50/Taxpayers who paid more tax than they owed can file a claim for a refund. The commissioner must review the claim and either approve it or deny it. Refunds can be applied to other taxes owed, including debts referred for collection. The section also covers how to appeal if a refund claim is denied.https://minnesotalawyer.com/statutes/chapter-289a/289a.51/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.51/Minnesota offers a rebate for buying an electric-assisted bicycle. The rebate amount depends on the buyer’s income level. Lower-income buyers may qualify for a larger rebate. The rebate is administered by the Department of Revenue and is available through approved retailers.https://minnesotalawyer.com/statutes/chapter-289a/289a.55/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.55/When taxes are paid late, the taxpayer must pay interest to the state on the unpaid amount. The interest rate is set annually by the commissioner based on federal rates. Interest runs from the due date of the return until the date the tax is paid. The interest applies to all types of state taxes covered by this chapter.https://minnesotalawyer.com/statutes/chapter-289a/289a.56/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.56/When the state owes a taxpayer a refund, the state must pay interest on the overpayment. Interest begins to accrue after a specified period following the filing of the return or the due date, whichever is later. The interest rate is the same rate used when taxpayers owe money to the state.https://minnesotalawyer.com/statutes/chapter-289a/289a.60/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.60/This section establishes civil penalties for tax violations including failure to file, failure to pay, filing a frivolous return, and using sales suppression devices. Penalties range from a percentage of the unpaid tax for simple late filing to substantial fines for fraud. Tax preparers face separate penalties for errors and misconduct.https://minnesotalawyer.com/statutes/chapter-289a/289a.63/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.63/This section establishes criminal penalties for tax crimes. Knowingly failing to file a return or pay taxes is a gross misdemeanor. Willfully attempting to evade taxes is a felony punishable by up to five years in prison and fines up to $10,000. Using zappers or phantom-ware to hide sales is also a felony.https://minnesotalawyer.com/statutes/chapter-289a/289a.65/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-289a/289a.65/This section has been repealed. It is no longer in effect and has no current legal force.