SF 3597

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/03/2026 09:00 a.m.

A bill for an act
relating to taxation; modifying the time limit to file a claim for refund; amending
Minnesota Statutes 2024, section 289A.40, subdivision 1.

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

Section 1.

Minnesota Statutes 2024, section 289A.40, subdivision 1, is amended to read:

Subdivision 1.

Time limit; generally.

new text begin (a) new text end Unless otherwise provided in this chapter, a
claim for a refund of an overpayment of state tax must be filed within 3-1/2 years from the
date prescribed for filing the return, plus any extension of time granted for filing the return,
but only if filed within the extended time, or deleted text begin one year from the date of an order assessing
tax under section 270C.33 or an order determining an appeal under section 270C.35,
subdivision 8, or one year from the date of a return made by the commissioner under section
270C.33, subdivision 3, upon payment in full of the tax, penalties, and interest shown on
the order or return made by the commissioner deleted text end new text begin two years from the date the tax, penalties, or
interest was paid new text end , whichever period expires later. deleted text begin Claims for refund, except for taxes under
chapter 297A, filed after the 3-1/2 year period but within the one-year period are limited to
the amount of the tax, penalties, and interest on the order or return made by the commissioner
and to issues determined by the order or return made by the commissioner.
deleted text end

deleted text begin In the case of assessments under section 289A.38, subdivision 5 or 6, claims for refund
under chapter 297A filed after the 3-1/2 year period but within the one-year period are
limited to the amount of the tax, penalties, and interest on the order or return made by the
commissioner that are due for the period before the 3-1/2 year period.
deleted text end

new text begin (b) For purposes of this subdivision, the amount of a refund is limited as follows:
new text end

new text begin (1) if the claim was filed by the taxpayer during the 3-1/2 year period prescribed in
paragraph (a), the refund must not exceed the tax, penalties, and interest paid within the
period, immediately preceding the filing of the claim, equal to 3-1/2 years plus any extension
of time granted for filing the return, but only if filed within the extended time;
new text end

new text begin (2) if the claim was not filed by the taxpayer within the 3-1/2 year period prescribed in
paragraph (a), the refund must not exceed the tax, penalties, and interest paid during the
two years immediately preceding the filing of the claim; and
new text end

new text begin (3) if no claim was filed by the taxpayer, the refund must not exceed the amount which
would be allowable under clause (1) or (2), if the claim was filed on the date the refund is
allowed.
new text end

new text begin (c) For purposes of this subdivision, the prepayment of tax made by withholding of tax
at the source or payment of estimated tax before the due date is considered paid on the last
day prescribed by law for the payment of the tax by the taxpayer. A return filed before the
last day prescribed for filing the return is considered to be filed on the last day. Where an
extension for filing a return is granted, a return filed before the extended due date is
considered as filed on the extended due date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to claims for refund filed on or after that date.
new text end