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SF 3320

as introduced - 91st Legislature (2019 - 2020) Posted on 02/20/2020 02:26pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to taxation; individual income; requiring a report on free filing for
individual income taxpayers; appropriating money.

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

Section 1. new text beginDEPARTMENT OF REVENUE FREE FILING REPORT.
new text end

new text begin (a) By January 15, 2021, the commissioner of revenue must provide a written report to
the chairs and ranking minority members of the legislative committees with jurisdiction
over taxes. The report must comply with the requirements of Minnesota Statutes, sections
3.195 and 3.197, and must also provide information on free electronic filing options for
preparing and filing Minnesota individual income tax returns.
new text end

new text begin (b) The commissioner must survey tax preparation software vendors for information on
a free electronic preparation and filing option for taxpayers to file Minnesota individual
income tax returns. The survey must request information from vendors that addresses the
following concerns:
new text end

new text begin (1) system development, capability, security, and costs for consumer-based tax filing
software;
new text end

new text begin (2) costs per return that would be charged to the state of Minnesota to provide an
electronic individual income tax return preparation, submission, and payment remittance
process;
new text end

new text begin (3) providing customer service and issue resolution to taxpayers using the software;
new text end

new text begin (4) providing and maintaining an appropriate link between the Department of Revenue
and the Internal Revenue Service Modernized Electronic Filing Program;
new text end

new text begin (5) ensuring that taxpayer return information is maintained and protected as required by
Minnesota Statutes, chapters 13 and 270B, Internal Revenue Service Publication 1075, and
any other applicable requirements; and
new text end

new text begin (6) current availability of products for the free filing and submitting of both Minnesota
and federal returns offered to customers and the income thresholds for using those products.
new text end

new text begin (c) The report by the commissioner must include at a minimum:
new text end

new text begin (1) a review of options that other states use for state electronic filing;
new text end

new text begin (2) an assessment of taxpayer needs for electronic filing, including current filing practices;
new text end

new text begin (3) an analysis of alternative options to provide free filing, such as tax credits, vendor
incentives, or other benefits; and
new text end

new text begin (4) an analysis of the Internal Revenue Service Free File Program usage.
new text end

Sec. 2. new text beginAPPROPRIATION; DEPARTMENT OF REVENUE FREE FILING
REPORT.
new text end

new text begin $175,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of revenue for the free filing report required under section 1. This is a onetime appropriation.
new text end