HF 3605

as introduced - 86th Legislature (2009 - 2010) Posted on 03/10/2010 03:33pm

A bill for an act
relating to taxation; income; corporate franchise; interest netting; 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.407] INTEREST OFFSET.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin This section only applies when a taxpayer makes an
overpayment of tax for any tax period, and as a result of a settlement agreement with the
Internal Revenue Service or the commissioner, transfers the overpayment of tax to any tax
period in which the taxpayer made an underpayment of tax.
new text end

new text begin Subd. 2. new text end

new text begin Interest amount. new text end

new text begin To the extent that interest is allowable under section
270C.405 on an amount of tax that was overpaid by a taxpayer for an incorrect tax period,
producing an equivalent underpayment of tax by the same taxpayer in another tax period
by which interest is payable under section 270C.40, the net interest accruing on the
equivalent overpayment and underpayment of tax is zero.
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 interest paid after that date.
new text end