| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; providing limitations on assessments of individual income, |
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| 3 | 3 | | 1.3 corporate franchise, and sales and use taxes; amending Minnesota Statutes 2024, |
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| 4 | 4 | | 1.4 section 270C.33, by adding a subdivision. |
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| 5 | 5 | | 1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 6 | 6 | | 1.6 Section 1. Minnesota Statutes 2024, section 270C.33, is amended by adding a subdivision |
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| 7 | 7 | | 1.7to read: |
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| 8 | 8 | | 1.8 Subd. 4a.Limitations; sales, corporate, and income taxes.(a) The provisions of this |
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| 9 | 9 | | 1.9subdivision are a limitation on the assessment authority of the commissioner under this |
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| 10 | 10 | | 1.10section. |
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| 11 | 11 | | 1.11 (b) The commissioner must not assess additional tax due under chapter 290 or 297A if |
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| 12 | 12 | | 1.12each of the following requirements are met: |
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| 13 | 13 | | 1.13 (1) the taxpayer was given erroneous advice in writing by an employee of the department |
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| 14 | 14 | | 1.14acting in an official capacity, if the advice: |
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| 15 | 15 | | 1.15 (i) was reasonably relied on and was included in a tax order or in response to a specific |
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| 16 | 16 | | 1.16written request by the taxpayer; and |
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| 17 | 17 | | 1.17 (ii) was not the result of failure by the taxpayer to provide adequate or accurate |
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| 18 | 18 | | 1.18information; and |
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| 19 | 19 | | 1.19 (2) effective for a taxable period beginning after the period covered by clause (1), neither |
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| 20 | 20 | | 1.20the statute or administrative rule on which the reporting or other practice is based has been |
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| 21 | 21 | | 1.21materially changed, its interpretation has not been changed by a court decision, or there has |
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| 22 | 22 | | 1.22been a federal adjustment as defined under section 289A.381, subdivision 7, and the |
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| 23 | 23 | | 1Section 1. |
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| 24 | 24 | | REVISOR EAP/HL 25-0068211/22/24 |
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| 25 | 25 | | State of Minnesota |
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| 26 | 26 | | This Document can be made available |
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| 27 | 27 | | in alternative formats upon request |
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| 28 | 28 | | HOUSE OF REPRESENTATIVES |
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| 29 | 29 | | H. F. No. 2270 |
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| 30 | 30 | | NINETY-FOURTH SESSION |
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| 31 | 31 | | Authored by Hanson, J., and Davids03/12/2025 |
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| 32 | 32 | | The bill was read for the first time and referred to the Committee on Taxes 2.1commissioner has not issued a revenue notice or directly notified the taxpayer, in writing, |
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| 33 | 33 | | 2.2of the commissioner's position as to the proper reporting or other treatment of the relevant |
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| 34 | 34 | | 2.3income, transaction, deduction, credit, or other item of tax preference. |
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| 35 | 35 | | 2.4 (c) For an audit of a prior taxable period by the commissioner, paragraph (b), clause (1), |
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| 36 | 36 | | 2.5applies only to the issues within the scope of and specifically addressed by the audit where |
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| 37 | 37 | | 2.6the written order given to the taxpayer includes erroneous advice on those issues. For a |
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| 38 | 38 | | 2.7written order that includes data sampling, paragraph (b), clause (1), applies only to the |
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| 39 | 39 | | 2.8reviewed sampled population. |
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| 40 | 40 | | 2.9 EFFECTIVE DATE.This section is effective for erroneous advice given to the taxpayer |
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| 41 | 41 | | 2.10in writing after June 30, 2025. |
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| 42 | 42 | | 2Section 1. |
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| 43 | 43 | | REVISOR EAP/HL 25-0068211/22/24 |
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