HF 2454

as introduced - 90th Legislature (2017 - 2018) Posted on 03/20/2017 01:28pm

A bill for an act
relating to taxation; individual income; requiring the commissioner of revenue to
implement a free electronic filing system for individual income tax returns;
requiring reports; proposing coding for new law in Minnesota Statutes, chapter
270C.

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

Section 1.

new text begin [270C.303] FREE ELECTRONIC FILING OF INDIVIDUAL INCOME
TAX RETURNS.
new text end

new text begin (a) The commissioner must develop and implement a system for the secure electronic
filing of individual income tax returns and payment of individual income tax liabilities on
the department's Web site at no cost. The system must allow for filing of individual returns
by individuals and also by tax preparers.
new text end

new text begin (b) The system must automatically populate returns with taxpayer data available to the
commissioner including but not limited to wage data received from one or more employers,
state income tax withheld by one or more employers, and additional taxes owed to the state
or refund owed to the taxpayer.
new text end

new text begin (c) The system must be available:
new text end

new text begin (1) by January 15, 2019, for the filing and payment of tax year 2018 individual income
taxes of filers with income only from wages, fewer than five dependents, and federal adjusted
gross income less than $200,000 for married couples filing joint returns, and less than
$100,000 for all other filers; and
new text end

new text begin (2) by January 15, 2020, for the filing and payment of tax year 2019 individual income
taxes of filers with income only from wages, Social Security benefits, interest, dividends,
individual retirement account distributions and pensions, fewer than five dependents, and
federal adjusted gross income less than $200,000 for married couples filing joint returns,
and less than $100,000 for all other filers.
new text end

new text begin (d) For purposes of this section, "federal adjusted gross income" has the meaning given
in section 62 of the Internal Revenue Code. Other terms have the meanings given in chapter
290.
new text end

new text begin (e) By September 15 of each year, beginning in 2019, the commissioner must provide
a report to the committees of the house of representatives and senate with jurisdiction over
taxes, in compliance with sections 3.195 and 3.197. The report must include statistics on
usage of the free electronic filing system required in this section; ways in which the
commissioner could expand the system, including draft legislation if needed for system
expansion; and any other information the commissioner considers relevant.
new text end

Sec. 2. new text begin FREE ELECTRONIC FILING OF INDIVIDUAL INCOME TAX RETURNS;
PILOT PROGRAM.
new text end

new text begin (a) The commissioner must conduct a pilot program to test the free electronic filing
requirement in Minnesota Statutes, section 270C.303. The pilot program must operate at
least three taxpayer assistance sites that receive grants under Minnesota Statutes, section
270C.21. At least one of the pilot program sites must be in the seven-county metropolitan
area, and at least one must be in greater Minnesota. The pilot program system must be
available by January 15, 2018, for the filing and payment of tax year 2017 individual income
taxes of filers with income only from wages, fewer than five dependents, and federal adjusted
gross income less than $200,000 for married couples filing joint returns, and less than
$100,000 for all other filers.
new text end

new text begin (b) The system must automatically populate returns with taxpayer data available to the
commissioner including but not limited to W-2 data on wages and state income tax
withholding.
new text end

new text begin (c) For purposes of this section, "federal adjusted gross income" has the meaning given
in section 62 of the Internal Revenue Code. Other terms have the meanings given in
Minnesota Statutes, chapter 290.
new text end

new text begin (d) By August 15, 2018, the commissioner must report final statistics on usage of the
pilot program and on plans to implement tax year 2018 electronic filing as required in
Minnesota Statutes, section 270C.303. The report must comply with the requirements of
Minnesota Statutes, sections 3.195 and 3.197.
new text end