HF 5467

as introduced - 93rd Legislature (2023 - 2024) Posted on 05/13/2024 10:49am

A bill for an act
relating to taxation; providing limitations on assessments of individual income,
corporate franchise, and sales and use taxes; amending Minnesota Statutes 2022,
section 270C.33, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2022, section 270C.33, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Limitations; sales, corporate, and income taxes. new text end

new text begin (a) The provisions of this
subdivision are a limitation on the assessment authority of the commissioner under this
section.
new text end

new text begin (b) The commissioner must not assess additional tax due under chapter 290 or 297A if
each of the following requirements are met:
new text end

new text begin (1) the taxpayer was given erroneous advice in writing by an employee of the department
acting in an official capacity, if the advice:
new text end

new text begin (i) was reasonably relied on and was included in a tax order or in response to a specific
written request by the taxpayer; and
new text end

new text begin (ii) was not the result of failure by the taxpayer to provide adequate or accurate
information; and
new text end

new text begin (2) effective for a taxable period beginning after the period covered by clause (1), neither
the statute or administrative rule on which the reporting or other practice is based has been
materially changed, its interpretation has not been changed by a court decision, or there has
been a federal adjustment as defined under section 289A.381, subdivision 7, and the
commissioner has not issued a revenue notice or directly notified the taxpayer, in writing,
of the commissioner's position as to the proper reporting or other treatment of the relevant
income, transaction, deduction, credit, or other item of tax preference.
new text end

new text begin (c) For an audit of a prior taxable period by the commissioner, paragraph (b), clause (1),
applies only to the issues within the scope of and specifically addressed by the audit where
the written order given to the taxpayer includes erroneous advice on those issues. For a
written order that includes data sampling, paragraph (b), clause (1), applies only to the
reviewed sampled population.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for erroneous advice given to the taxpayer
in writing after June 30, 2024.
new text end