HF 843

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

A bill for an act
relating to tax administration; providing for electronic filing of individual income
tax returns through the Department of Revenue Web site; requiring a report;
amending Minnesota Statutes 2006, section 289A.08, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2006, section 289A.08, is amended by adding a
subdivision to read:

new text begin Subd. 17. new text end

new text begin Electronic filing of individual income tax returns on Department of
Revenue Web site. new text end

new text begin The commissioner of revenue must provide the option for taxpayers
to electronically file individual income tax returns on the Department of Revenue's Web
site. The commissioner may not charge a fee to taxpayers who file their own returns
electronically on the department's Web site.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for returns relating to taxable years
beginning after December 31, 2006.
new text end

Sec. 2.

Minnesota Statutes 2006, section 289A.08, is amended by adding a subdivision
to read:

new text begin Subd. 18. new text end

new text begin ReadyReturn for individual income tax returns. new text end

new text begin (a) The ReadyReturn
program is an optional filing method that provides eligible taxpayers a tax return
using tax data of the taxpayer, already collected by the Department of Revenue, and
calculations based on that data. The commissioner may provide all eligible taxpayers
with a ReadyReturn in electronic format in the manner specified in this subdivision.
The ReadyReturn includes a record of the taxpayera??s wages that have been reported by
employers and provides the tax liability attributable to that income.
new text end

new text begin (b) The commissioner must notify taxpayers that the ReadyReturn program is an
available filing option for eligible taxpayers. The notification must contain all of the
following information:
new text end

new text begin (1) That taxpayers eligible for the program may choose to view or file a ReadyReturn
under the program.
new text end

new text begin (2) A description of the ReadyReturn program, that includes, but is not limited to,
the following statement:
new text end

new text begin "ReadyReturn gives a taxpayer access to the wage data received from an employer.
ReadyReturn gives a taxpayer the option of viewing or filing a a??ReadyReturn.a?? A
ReadyReturn is a completed tax return that is based on the following: wage data received
from an employer, the taxpayera??s filing status from the prior year, amounts withheld by the
employer, and additional taxes owed to the state or refund owed to the taxpayer."
new text end

new text begin (3) Immediately below the description in clause (2) and in boldface type and in a
large font, the following statement: "The ReadyReturn program is an optional service
for the convenience of taxpayers with simple returns. You are under absolutely no
requirement to use this program. You may choose not to look at the online program, or to
look at the online program and not file the ReadyReturn. If you choose not to view or file
a ReadyReturn, this will not affect your tax liability in any way."
new text end

new text begin (4) The statement described in clause (3) must be prominently displayed on the
ReadyReturn Web site, and provided to every taxpayer that uses the online ReadyReturn
prior to logging in and prior to electronically signing an electronically submitted
ReadyReturn.
new text end

new text begin A negative inference must not be drawn from a taxpayera??s decision not to file a
ReadyReturn or to file a return under a different method. If a taxpayer files a ReadyReturn
and makes payment of the amount indicated on the ReadyReturn, a penalty is not imposed
under section 289A.60, subdivision 1, paragraph (c), for failure to pay tax, or under
section 289A.60, subdivision 4, for understatement of tax required to be shown on that
return which is not so shown.
new text end

new text begin (d) In order to operate the ReadyReturn program, the commissioner must:
new text end

new text begin (1) design and implement a ReadyReturn Web page or pages on the Department of
Revenue Web site. The ReadyReturn Web page must provide all taxpayers with secure
online access to their personal wage data, as reported by employers, and other personal
tax return information as reported by third parties, that is maintained in the records of the
Department of Revenue, no later than January 31, 2009, for data relating to taxable year
2008, and by January 31 of each following year for data relating to the immediately
preceding taxable year;
new text end

new text begin (2) by March 1, 2008, report to the committees of the house and the senate with
jurisdiction over taxes on the status of the successful implementation of an online system
that will ensure taxpayer privacy and security of taxpayer data. If the commissioner
cannot guarantee the appropriate level of taxpayer privacy and security of taxpayer data
by January 31, 2009, the commissioner must request an extension of the January 31,
2009, deadline as part of the report; and
new text end

new text begin (3) develop an alternative method for eligible taxpayers without access to the
Internet to request their completed ReadyReturn in paper form.
new text end

new text begin (e) Contingent upon the successful implementation of an authentication solution to
ensure taxpayer privacy and security of taxpayer data, taxpayers must be able to authorize
their preparers or agents to access any information provided as part of the ReadyReturn
program and any third-party reporting information described in paragraph (b). The
commissioner must consult with providers of proprietary software to make the information
described in paragraphs (a) and (b) available to taxpayers using that software.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
with the ReadyReturn program effective for individual income tax returns relating to
taxable year 2008.
new text end