HF 3043

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing for a tax information 
  1.3             sample data study; requiring certain tax preparers to 
  1.4             file by electronic means; giving the commissioner of 
  1.5             revenue certain temporary powers; amending Minnesota 
  1.6             Statutes 1998, section 289A.08, by adding a 
  1.7             subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [TAX INFORMATION SAMPLE DATA STUDY.] 
  1.10     (a) One of the goals of a reengineered income tax system is 
  1.11  to reduce the administrative burden for both taxpayers and tax 
  1.12  administrators.  In order to reduce the cost of handling paper 
  1.13  returns and to explore electronic options for taxpayer filing of 
  1.14  tax data, the department of revenue will explore eliminating the 
  1.15  requirement of Minnesota Statutes, section 289A.08, subdivision 
  1.16  11, that the federal return be attached in filing a Minnesota 
  1.17  individual income tax return.  This federal return information 
  1.18  is used for the purposes of ensuring the accurate calculation of 
  1.19  individuals' Minnesota income tax liabilities and for the 
  1.20  purposes of preparing the microdata samples under Minnesota 
  1.21  Statutes, section 270.0681. 
  1.22     (b) To ensure the continued reliability of income tax data 
  1.23  samples and to evaluate ways in which the quality of samples may 
  1.24  be improved, the commissioner shall study and evaluate 
  1.25  alternatives to requiring taxpayers to attach a copy of their 
  1.26  federal return when filing Minnesota state income tax.  The 
  2.1   study must be prepared in consultation with the coordinating 
  2.2   committee established in Minnesota Statutes, section 270.0681, 
  2.3   subdivision 2.  The study must: 
  2.4      (1) evaluate the quality of federal electronic data 
  2.5   compared to sample data prepared from returns filed with the 
  2.6   department; 
  2.7      (2) evaluate alternative sampling methodology, including 
  2.8   preselection of sampled returns, panel data, and other sampling 
  2.9   methods; and 
  2.10     (3) evaluate and test whether alternative methods can 
  2.11  gather reliable data without the federal return attached. 
  2.12     (c) The commissioner of revenue shall report the findings 
  2.13  of the study to the house tax committee chair, the senate tax 
  2.14  committee chair, and the commissioner of finance.  The 
  2.15  commissioner of revenue may, notwithstanding the provisions of 
  2.16  Minnesota Statutes, section 289A.08, subdivision 11, remove the 
  2.17  requirement that the federal individual income tax return be 
  2.18  included as part of the Minnesota individual income tax return 
  2.19  if the commissioner of finance approves the study.  The 
  2.20  commissioner of finance may approve only if: 
  2.21     (1) the study under paragraph (b) finds that an alternative 
  2.22  would provide a data sample that is as accurate and reliable as 
  2.23  one prepared from returns required to be attached to or filed 
  2.24  with the Minnesota tax return; and 
  2.25     (2) the commissioner of finance determines that a sample 
  2.26  prepared using the alternative method will continue to be 
  2.27  available to staff of both the department of finance and 
  2.28  legislature on the same basis as one prepared from returns 
  2.29  required to be attached to or filed with the Minnesota tax 
  2.30  returns. 
  2.31     Sec. 2.  Minnesota Statutes 1998, section 289A.08, is 
  2.32  amended by adding a subdivision to read: 
  2.33     Subd. 16.  [TAX REFUND OR RETURN PREPARERS.] (a) A "tax 
  2.34  refund or return preparer," as defined in section 289A.60, 
  2.35  subdivision 13, paragraph (g), who prepared more than 500 
  2.36  Minnesota individual income tax returns for the prior calendar 
  3.1   year must file all Minnesota individual income tax returns 
  3.2   prepared for the current calendar year by electronic means. 
  3.3      (b) For tax returns prepared for the tax year beginning in 
  3.4   2001, the "500" in paragraph (a) is reduced to 250. 
  3.5      (c) For tax returns prepared for tax years beginning after 
  3.6   December 31, 2001, the "500" in paragraph (a) is reduced to 100. 
  3.7      (d) Paragraph (a) does not apply to a return if the 
  3.8   taxpayer has indicated on the return that the taxpayer did not 
  3.9   want the return filed by electronic means. 
  3.10     Sec. 3.  [COMMISSIONER OF REVENUE; TEMPORARY POWERS.] 
  3.11     Subdivision 1.  [APPLICABILITY.] This section gives the 
  3.12  commissioner of revenue certain temporary powers.  These powers 
  3.13  apply only to taxes imposed under Minnesota Statutes, sections 
  3.14  290.032, 290.06, and 290.091 administered by the commissioner 
  3.15  under Minnesota Statutes, chapters 289A and 290. 
  3.16     Subd. 2.  [PAYMENT OF TAXES.] The commissioner may 
  3.17  establish additional due dates, applicable to certain groups of 
  3.18  taxpayers, for the payment of taxes.  Unless the commissioner 
  3.19  has the written consent of the taxpayer, the additional payment 
  3.20  dates must not require the taxpayer to pay the tax earlier than 
  3.21  the payment dates provided by statute or rule.  The commissioner 
  3.22  may accept various forms of payment, including, but not limited 
  3.23  to, financial transaction cards and electronic funds transfer.  
  3.24     Subd. 3.  [FILING OF RETURN.] The commissioner may 
  3.25  establish additional due dates, applicable to certain groups of 
  3.26  taxpayers, for the filing of tax returns.  Unless the 
  3.27  commissioner has the written consent of the taxpayer, the return 
  3.28  due date must not be earlier than the due date provided by 
  3.29  statute or rule.  In conducting pilot studies, the commissioner 
  3.30  may use tax return forms with varying formats, accept electronic 
  3.31  filed returns, and waive the taxpayer signature requirements.  
  3.32     Subd. 4.  [AGREEMENTS.] The commissioner may enter written 
  3.33  agreements with taxpayers that provide for the payment of taxes 
  3.34  or the filing of returns at dates earlier than provided by 
  3.35  statute or rule.  The commissioner and the taxpayer may also 
  3.36  agree in writing to other changes from the statutory or rule 
  4.1   requirements related to the administration of these taxes.  If 
  4.2   the taxpayer agrees to pay taxes at a date earlier than that 
  4.3   provided by statute, the commissioner may negotiate payments to 
  4.4   the taxpayer to compensate in part or in full for the loss 
  4.5   incurred as a result of the accelerated payment.  
  4.6      Subd. 5.  [PROCEDURE; APPROVAL.] Pilot studies proposed 
  4.7   under these authorities must be presented to the chairs of the 
  4.8   house of representatives tax committee and the senate committee 
  4.9   on taxes and to the chairs of the committees on state government 
  4.10  finance of the house of representatives and the senate.  No 
  4.11  study may be undertaken without the approval of both tax 
  4.12  committee chairs.  If either chair fails to respond within 15 
  4.13  days after the proposal is presented, that chair is considered 
  4.14  to have approved the study.  If the study is approved, the 
  4.15  commissioner shall initially seek participation on a voluntary 
  4.16  basis from within the targeted taxpayer group. 
  4.17     Subd. 6.  [EXPIRATION DATE.] This section expires June 30, 
  4.18  2002, and all pilot projects under this section must be 
  4.19  completed by June 30, 2002. 
  4.20     Sec. 4.  [EFFECTIVE DATE.] 
  4.21     Section 2 is effective for tax returns prepared for tax 
  4.22  years beginning after December 31, 1999.  Sections 1 and 3 are 
  4.23  effective the day following final enactment.