1997 Minnesota Statutes

CHAPTER 294. General provisions

     294.01 Gross earnings tax.  

    Subdivision 1.  Every company, joint stock association, 
 copartnership, corporation, or individual required by law to pay 
 taxes to the state on a gross earnings basis shall file a return 
 with the commissioner of revenue, in such form as the 
 commissioner shall prescribe, containing a true and just report 
 of the gross earnings for and during the year ending December 
 thirty-first preceding.  Such return and payment of the tax due 
 therewith shall be submitted on or before the date provided in 
 chapter 295, for such company, joint stock association, 
 copartnership, corporation, or individual.  The gross earnings 
 and the tax due thereon shall be computed in accordance with the 
 method prescribed by law.  

    Subd. 2.  Repealed, 1969 c 1147 s 22 

    HIST: (2233) 1913 c 487 s 1; 1927 c 308; 1967 c 821 s 1; 1969 
 c 1147 s 1; 1973 c 582 s 3; 1986 c 444 

     294.02 Examination of returns; assessments, refund. 

    The commissioner of revenue shall, as soon as practicable 
 after the return is filed, examine the same and make any 
 investigation or examination of the taxpayer's records and 
 accounts that the commissioner may deem necessary for 
 determining the correctness of the return.  The tax computed by 
 the commissioner on the basis of such examination and 
 investigation shall be the tax to be paid by such taxpayer.  If 
 the tax found due shall be greater than the amount reported as 
 due on the taxpayer's return, the commissioner shall assess a 
 tax in the amount of such excess and the whole amount of such 
 excess shall be paid to the commissioner within 60 days after 
 notice of the amount and demand for its payment shall have been 
 mailed to the taxpayer by the commissioner.  If the 
 understatement of the tax on the return was false or fraudulent 
 with intent to evade the tax, the installments of the tax shown 
 by the taxpayer on the taxpayer's return which have not yet been 
 paid shall be paid to the commissioner within 60 days after 
 notice of the amount thereof and demand for payment shall have 
 been mailed to the taxpayer by the commissioner.  If the amount 
 of tax found due by the commissioner shall be less than that 
 reported as due on the taxpayer's return, the excess shall be 
 refunded to the taxpayer in the manner provided in section 
 294.09 (except that no demand therefor shall be necessary), if 
 the taxpayer has already paid the whole of such tax, or credited 
 against any unpaid installment thereof; provided, that no 
 refundment shall be made except as provided in section 294.09, 
 after the expiration of three and one-half years after the 
 filing of the return. 

    The commissioner, on examining returns of a taxpayer for 
 more than one year, may issue one order covering the several 
 years under consideration reflecting the aggregate refund or 
 additional tax due. 

    The notices and demands provided for by sections 294.02 and 
 294.021 shall be in such form as the commissioner may determine 
 (including a statement) and shall contain a brief explanation of 
 the computation of the tax and shall be sent by mail to the 
 taxpayer at the address given in the return, if any, and if no 
 such address is given, then to the taxpayer's last known address.

    In cases where there has been an overpayment of a 
 self-assessed liability as shown on the return filed by the 
 taxpayer, the commissioner may refund such overpayment to the 
 taxpayer and no demand therefor shall be necessary. 

    HIST: (2234) 1913 c 487 s 2; 1967 c 821 s 2; 1969 c 1147 s 2; 
 1973 c 582 s 3; 1978 c 767 s 27; 1986 c 444 

     294.021 Assessment; failure to file return, false or 
  fraudulent return filed. 

    If any company, joint stock association, copartnership, 
 corporation, or individual required by this chapter to file any 
 return shall fail to do so within the time prescribed by this 
 chapter or by rules under the authority thereof, or shall make, 
 willfully or otherwise, an incorrect, false, or fraudulent 
 return, it shall, on the written demand of the commissioner of 
 revenue, file such return, or corrected return, within 30 days 
 after the mailing of such written demand and at the same time 
 pay the whole tax, or additional tax, due on the basis thereof.  
 If such taxpayer shall fail within that time to file such 
 return, or corrected return, the commissioner shall make for the 
 taxpayer a return, or corrected return, from the commissioner's 
 own knowledge and from such information as the commissioner can 
 obtain through testimony, or otherwise, and assess a tax on the 
 basis thereof, which tax (less any payments theretofore made on 
 account of the tax for the taxable year covered by such return) 
 shall be paid within 60 days after the commissioner has mailed 
 to such taxpayer a written notice of the amount thereof and 
 demand for its payment. Any such return or assessment made by 
 the commissioner on account of the failure of the taxpayer to 
 make a return, or a corrected return, shall be prima facie 
 correct and valid, and the taxpayer shall have the burden of 
 establishing its incorrectness or invalidity in any action or 
 proceeding thereto. 

    HIST: 1969 c 1147 s 3; 1973 c 582 s 3; 1978 c 767 s 28; 1985 c 
 248 s 70; 1986 c 444 

     294.03 Failure to pay tax; penalties, interest. 

    Subdivision 1.  If any company, joint stock association, 
 copartnership, corporation, or individual required by law to pay 
 taxes to the state on a gross earnings basis shall fail to pay 
 such tax or gross earnings percentage within the time specified 
 by law for the payment thereof, or within 30 days after final 
 determination of an appeal to the Minnesota tax court relating 
 thereto, there shall be added a specific penalty equal to five 
 percent of the amount so remaining unpaid if the failure is for 
 not more than 30 days, with an additional penalty of five 
 percent of the amount of tax remaining unpaid during each 
 additional 30 days or fraction of 30 days during which the 
 failure continues, not exceeding 15 percent in the aggregate.  
 Such penalty shall be collected as part of said tax, and the 
 amount of said tax not timely paid, together with said penalty, 
 shall bear interest at the rate specified in section 270.75 from 
 the time such tax should have been paid until paid. 

    Subd. 2.  In case of any failure to make and file a return 
 as required by this chapter within the time prescribed by law or 
 prescribed by the commissioner in pursuance of law, a penalty is 
 imposed of five percent of the amount of tax not timely paid.  
 The amount so added to any tax shall be collected at the same 
 time and in the same manner and as a part of the tax, and the 
 amount of said tax together with the amount so added shall bear 
 interest at the rate specified in section 270.75 from the time 
 such tax should have been paid until paid unless the tax has 
 been paid before the discovery of the neglect, in which case the 
 amount so added shall be collected in the same manner as the tax.

    For purposes of this subdivision, the amount of any taxes 
 required to be shown on the return shall be reduced by the 
 amount of any part of the tax which is paid on or before the 
 date prescribed for payment of the tax and by the amount of any 
 credit against the tax which may be claimed upon the return. 

    Subd. 3.  Where any such company, joint stock association, 
 copartnership, corporation or individual, with intent to evade 
 the tax, shall fail to file any return required or shall with 
 such intent file a false or fraudulent return, there shall also 
 be imposed upon such company, joint stock association, 
 copartnership, corporation or individual an additional penalty 
 equal to 50 percent of any tax (less any amount paid on the 
 basis of such false or fraudulent return) found due for the 
 period to which such return related.  The penalty imposed by 
 this subdivision shall be collected as part of the tax and shall 
 be in addition to any other penalties provided by law. 

    Subd. 4.  If there is a pattern by a person of repeated 
 failures to timely file returns or timely pay taxes, and written 
 notice is given that a penalty will be imposed if such failures 
 continue, a penalty of 25 percent of the amount of tax not 
 timely paid as a result of each such subsequent failure is added 
 to the tax.  The penalty can be abated under the abatement 
 authority in section 270.07, subdivisions 1, paragraph (e), and 
 6. 

    HIST: (2235) 1913 c 487 s 3; 1967 c 821 s 3; 1969 c 1147 s 4; 
 1975 c 377 s 30,31; 1976 c 134 s 78; 1977 c 307 s 29; 1993 c 375 
 art 10 s 24-26; 1995 c 186 s 58 

  294.04 Repealed, 1969 c 1147 s 22 

  294.05 Repealed, 1969 c 1147 s 22 

     294.06 Delinquent taxes; collection.  

    Such delinquent and unpaid gross earnings tax, penalties 
 and interest, assessed and certified by the commissioner of 
 revenue, as provided in section 294.03 by law, shall be a lien 
 upon all the property, estate and effects of any such company, 
 joint stock association, copartnership, corporation or 
 individual, and shall take precedence of all demands and 
 judgments against the same; and said lien shall relate back to 
 and be effective from the date when such tax was originally due 
 and payable; and the certificate of the commissioner of revenue 
 that said tax, penalties and interest are due and unpaid, and/or 
 the unpaid draft of the commissioner of finance issued in 
 pursuance of tax on gross earnings received by such company, 
 joint stock association, copartnership, corporation, or 
 individual on or prior to December 31, 1968, or by telephone 
 companies on or prior to December 31, 1966, shall be sufficient 
 warrant for the attorney general to institute proceedings for 
 the collection of said tax, penalties and interest by sale of 
 such property or otherwise.  

    HIST: (2238) 1913 c 487 s 5; 1943 c 120; 1967 c 821 s 5; 1969 
 c 1147 s 5; 1971 c 24 s 30; 1973 c 492 s 14; 1973 c 582 s 3 

     294.07 Uniform system of accounting.  

    The commissioner of revenue shall have authority and power 
 to prescribe for such companies, joint stock associations, 
 copartnerships, corporations, or individuals a system of gross 
 earnings accounts that shall be uniform for each class of 
 companies and shall supervise the method of keeping such 
 accounts; provided, that such system shall conform, as nearly as 
 practicable, with that prescribed for such companies by the 
 United States government.  

    HIST: (2239) 1913 c 487 s 6; 1969 c 1147 s 6; 1973 c 582 s 3; 
 1986 c 444 

     294.08 Evasions; violations.  

    Subdivision 1.    Assessment, generally.  Except as 
 otherwise provided in this chapter, the amount of gross earnings 
 taxes shall be assessed within three and one-half years after 
 the return prescribed by section 294.01 is filed.  Such taxes 
 shall be deemed to have been assessed within the meaning of this 
 section whenever the commissioner of revenue shall have 
 determined the gross earnings subject to tax and computed and 
 recorded the amount of tax with respect thereto, and if the 
 amount is found to be in excess of that originally declared on 
 the return, whenever the commissioner shall have prepared a 
 notice of tax assessment and mailed same to the taxpayer.  The 
 notice of tax assessment shall be sent by mail to the post 
 office address given in the return and the record of such 
 mailing shall be presumptive evidence of the giving of such 
 notice, and such records shall be preserved by the commissioner. 

    Subd. 2.    Computation of time.  For the purposes of 
 this section and section 294.09, a return filed before the last 
 day prescribed by law for the filing thereof shall be considered 
 as filed on such last day.  

    Subd. 3.    False or fraudulent return and no return.  
 When a company, joint stock association, copartnership, 
 corporation, or individual required to file a return under this 
 chapter files a false or fraudulent return or fails to file a 
 return, the tax may be assessed and the attorney general may 
 begin proceedings in accordance with section 294.06 at any time. 

    Subd. 4.    Consent to extend time.  Where before the 
 expiration of the time prescribed in subdivision 1 for the 
 assessment of the tax, the commissioner of revenue and the 
 company, joint stock association, copartnership, corporation, or 
 individual filing the return consent in writing to an extension 
 of time for the assessment of the tax, the tax may be assessed 
 at any time prior to the expiration of the period agreed upon.  
 The period so agreed upon may be extended by subsequent 
 agreements in writing made before the expiration of the period 
 previously agreed upon.  

    Subd. 5.    Omission in excess of 25 percent.  If the 
 taxpayer omits from gross earnings an amount properly includable 
 therein which is in excess of 25 percent of the amount of gross 
 earnings stated in the return, the tax may be assessed, or a 
 proceeding in court for the collection of such tax may be begun 
 at any time within six years after the return was filed.  

    HIST: (2240) 1913 c 487 s 7; 1969 c 1147 s 7; 1973 c 582 s 3 

     294.09 Overpayments; claims for refund. 

    Subdivision 1.    Procedures; time limit.  A company, 
 joint stock association, copartnership, corporation, or 
 individual who has paid, voluntarily or otherwise, or from whom 
 there has been collected (other than by proceedings instituted 
 by the attorney general under sections 294.06 and 294.08, 
 subdivision 3) an amount of gross earnings tax for any year in 
 excess of the amount legally due for that year, may file with 
 the commissioner of revenue a claim for a refund of such 
 excess.  Except as provided in subdivision 4, no such claim 
 shall be entertained unless filed within the period prescribed 
 in section 289A.40, subdivision 1.  Upon the filing of a claim 
 the commissioner shall examine the same and shall make and file 
 written findings thereon denying or allowing the claim in whole 
 or in part and shall mail a notice thereof to such company, 
 joint stock association, copartnership, corporation, or 
 individual at the address stated upon the return.  If such claim 
 is allowed in whole or in part, the commissioner shall credit 
 the amount of the allowance against any tax due the state from 
 the claimant and for the balance of said allowance, if any, the 
 commissioner shall issue a certificate for the refundment of the 
 excess paid.  The commissioner of finance shall cause such 
 refund to be paid out of the proceeds of the gross earnings 
 taxes imposed by Minnesota Statutes 1967, chapters 294 and 295 
 as other state moneys are expended.  So much of the proceeds as 
 may be necessary are hereby appropriated for that purpose.  Any 
 allowance so made by the commissioner shall include interest at 
 the rate specified in section 270.76 computed from the date of 
 payment or collection of the tax until the date the refund is 
 paid to the claimant.  

    Subd. 2.    Denial of claim, court proceedings.  If the 
 claim is denied in whole or in part, the taxpayer may commence 
 an action against the commissioner to recover any overpayments 
 of taxes claimed to be refundable but for which the commissioner 
 has issued no certificate of refundment.  Such action may be 
 brought in the district court of the district in which lies the 
 county of the taxpayer's residence or principal place of 
 business or in the district court of Ramsey county.  Such action 
 may be commenced after the expiration of six months after the 
 claim is filed if the commissioner has not then taken final 
 action thereon, and shall be commenced within 18 months after 
 the notice of the order denying the claim.  

    Subd. 3.    Denial of claim, appeal.  Either party to 
 the civil action may appeal to the court of appeals as in other 
 civil cases.  

    Subd. 4.    Consent to extend time.  If the commissioner 
 and the taxpayer have within the periods prescribed in 
 subdivision 1 consented in writing to any extension of time for 
 the assessment of the tax under the provisions of section 
 294.08, subdivision 4, the period within which a claim for 
 refund may be filed, or a refund may be made or allowed, if no 
 claim is filed, shall be the period within which the 
 commissioner and the taxpayer have consented to an extension for 
 the assessment of the tax and six months thereafter. 

    HIST: (2241) 1913 c 487 s 8; 1969 c 1147 s 8; 1973 c 492 s 14; 
 1973 c 582 s 3; 1983 c 247 s 124; 1Sp1985 c 14 art 15 s 13; 1986 
 c 444; 1995 c 264 art 13 s 14,15 

*   NOTE:  The amendment to subdivision 1 by Laws 1995, chapter 
*264, article 13, section 14, is effective for claims for refund 
*which have not been filed as of June 2, 1995, and in which the 
*time period for filing the claim has not expired under the 
*provisions in effect prior to June 2, 1995.  The time period for 
*filing such claims is the time period prescribed in subdivision 
*1, or one year after June 2, 1995, whichever is greater.  Laws 1995, 
*chapter 264, article 13, section 24.

     294.10 Records and files kept for six years by companies.

    Every person, company, joint stock association, 
 copartnership, or corporation required by law to pay taxes to 
 the state upon a gross earnings basis, shall keep, as a 
 permanent file and in such a manner as to make them easily 
 accessible at all times for inspection by a properly accredited 
 representative of the commissioner of revenue, all books, 
 records, documents, papers, and statistics relating to such 
 gross earnings for at least six years subsequent to the date 
 that such gross earnings tax returns have been rendered to the 
 state.  

    HIST: (2243) 1909 c 258 s 1; 1969 c 1147 s 9; 1973 c 582 s 3 

     294.11 Destruction of certain papers.  

    Any detached papers subordinate to statements of gross 
 earnings, or reports compiled in the accounting department, the 
 full details of which are included in other statements or 
 reports on file in as perfect a form, and which have been passed 
 upon in a general examination by the special examiners or 
 representatives of the state, but which have not reached the 
 time limit prescribed in section 294.10, may, upon the 
 recommendations of such special examiner or representative and 
 the written approval of the commissioner of revenue, be 
 destroyed.  

    If in the opinion of the commissioner of revenue, gross 
 earnings may be adequately verified without reference to certain 
 of such subordinate detached papers, the commissioner may 
 authorize destruction of such detached papers without 
 examination.  

    HIST: (2244) 1909 c 258 s 2; 1965 c 137 s 1; 1969 c 1147 s 10; 
 1973 c 582 s 3; 1986 c 444 

     294.12 Violation, a gross misdemeanor.  

    Any person who shall willfully violate the provisions of 
 sections 294.10 and 294.11 shall be deemed guilty of a gross 
 misdemeanor.  

    HIST: (2245) 1909 c 258 s 3 

  294.21 Repealed, 1987 c 268 art 9 s 44 

  294.22 Repealed, 1987 c 268 art 9 s 44 

  294.23 Repealed, 1987 c 268 art 9 s 44 

  294.24 Repealed, 1987 c 268 art 9 s 44 

  294.25 Repealed, 1987 c 268 art 9 s 44 

  294.26 Repealed, 1987 c 268 art 9 s 44 

  294.27 Repealed, 1977 c 423 art 10 s 30 

  294.28 Repealed, 1977 c 423 art 10 s 30