HF 517

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; requiring expanded information reporting; appropriating
money; amending Minnesota Statutes 2006, section 289A.12, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 289A.12, subdivision 4, is amended to
read:

Subd. 4.

Returns by persons, corporations, cooperatives, governmental entities,
or school districts.

new text begin (a) new text end The commissioner may by notice and demand require to the
extent required by section 6041 of the Internal Revenue Code, a person, corporation,
or cooperative, the state of Minnesota and its political subdivisions, and a city, county,
and school district in Minnesota, making payments in the regular course of a trade or
business during the taxable year to any person or corporation of $600 or more on account
of rents or royalties, or of $10 or more on account of interest, or $10 or more on account
of dividends or patronage dividends, or $600 or more on account of either wages, salaries,
commissions, fees, prizes, awards, pensions, annuities, or any other fixed or determinable
gains, profits or income, not otherwise reportable under section 289A.09, subdivision 2, or
on account of earnings of $10 or more distributed to its members by savings associations
or credit unions chartered under the laws of this state or the United States, (1) to file with
the commissioner a return (except in cases where a valid agreement to participate in the
combined federal and state information reporting system has been entered into, and the
return is filed only with the commissioner of internal revenue under the applicable filing
and informational reporting requirements of the Internal Revenue Code) with respect to
the payments in excess of the amounts named, giving the names and addresses of the
persons to whom the payments were made, the amounts paid to each, and (2) to make
a return with respect to the total number of payments and total amount of payments,
for each category of income named, which were in excess of the amounts named. This
subdivision does not apply to the payment of interest or dividends to a person who was a
nonresident of Minnesota for the entire year.

new text begin (b) For payments for which a return is covered by paragraph (a), regardless of
whether the commissioner has required filing under paragraph (a), the payor must file a
copy of the return with the commissioner if:
new text end

new text begin (i) the return is for a payment made to a Minnesota resident, to a recipient with a
Minnesota address, or for activity occurring in the state of Minnesota; and
new text end

new text begin (ii) the payment is for wages, salaries, or other compensation for services provided.
The commissioner may require this information to be filed in electronic or another form
that the commissioner determines is appropriate, notwithstanding the provisions of
paragraph (c).
new text end

new text begin (c) new text end A person, corporation, or cooperative required to file returns under this
subdivision must file the returns on magnetic media if magnetic media was used to satisfy
the federal reporting requirement under section 6011(e) of the Internal Revenue Code,
unless the person establishes to the satisfaction of the commissioner that compliance with
this requirement would be an undue hardship.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for forms required to be filed by
federal law after December 31, 2007.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2008 and $....... in fiscal year 2009 are appropriated from the
general fund to the commissioner of revenue. The commissioner shall use the amounts
appropriated under this section to use the information reporting required under section
1 to increase compliance with the individual income tax, including but not limited to
developing information systems, matching the information returns with tax returns and
other information, and auditing taxpayers.
new text end