2003 Minnesota Statutes

     289A.37 Order of assessment. 

    Subdivision 1.    Order of assessment; notice and demand 
 to taxpayer.  (a) When a return has been filed and the 
 commissioner determines that the tax disclosed by the return is 
 different than the tax determined by the examination, the 
 commissioner shall send an order of assessment to the taxpayer.  
 When no return has been filed, the commissioner may make a 
 return for the taxpayer under section 289A.35 or may send an 
 order of assessment under this subdivision.  The order must 
 explain the basis for the assessment and must explain the 
 taxpayer's appeal rights.  An order of assessment is final when 
 made but may be reconsidered by the commissioner under section 
 289A.65. 

    (b) No collection action can be taken, including the filing 
 of liens under section 270.69, and the penalty under section 
 289A.60, subdivision 1, is not imposed when a return has been 
 filed for the tax type and period upon which the order is based, 
 if the amount shown on the order is paid to the commissioner:  
 (1) within 60 days after the order has been mailed to the 
 taxpayer by the commissioner; or (2) if an administrative appeal 
 is filed under section 289A.65 or a Tax Court appeal is filed 
 under chapter 271, within 60 days following final determination 
 of the appeal if the appeal is based upon a constitutional 
 challenge to the tax, and if not, when the decision of the Tax 
 Court is made. 

    Subd. 2.    Erroneous refunds.  An erroneous refund is 
 considered an underpayment of tax on the date made.  An 
 assessment of a deficiency arising out of an erroneous refund 
 may be made at any time within two years from the making of the 
 refund.  If part of the refund was induced by fraud or 
 misrepresentation of a material fact, the assessment may be made 
 at any time. 

    Subd. 3.    Assessment presumed valid.  A return or 
 assessment of tax made by the commissioner is prima facie 
 correct and valid.  The taxpayer has the burden of establishing 
 its incorrectness or invalidity in any related action or 
 proceeding. 

    Subd. 4.    Aggregate refund or assessment.  The 
 commissioner, on examining returns of a taxpayer for more than 
 one year or period, may issue one order covering the period 
 under examination that reflects the aggregate refund or 
 additional tax due. 

    Subd. 5.    Sufficiency of notice.  An order of 
 assessment, sent postage prepaid by United States mail to the 
 taxpayer at the taxpayer's last known address, is sufficient 
 even if the taxpayer is deceased or is under a legal disability, 
 or, in the case of a corporation, has terminated its existence, 
 unless the department has been provided with a new address by a 
 party authorized to receive notices of assessment. 

    Subd. 6.    Order of assessment if joint income tax 
 return.  If a joint income tax return is filed by a husband 
 and wife, an order of assessment may be a single joint notice.  
 If the commissioner has been notified by either spouse that that 
 spouse's address has changed and if that spouse requests it, 
 then, instead of the single joint notice mailed to the last 
 known address of the husband and wife, a duplicate or original 
 of the joint notice must be sent to the requesting spouse at the 
 address designated by the requesting spouse.  The other joint 
 notice must be mailed to the other spouse at that spouse's last 
 known address.  An assessment is not invalid for failure to send 
 it to a spouse if the spouse actually receives the notice in the 
 same period as if it had been mailed to that spouse at the 
 correct address or if the spouse has failed to provide an 
 address to the commissioner other than the last known address. 

    HIST: 1990 c 480 art 1 s 17; 1991 c 291 art 16 s 8; 1992 c 511 
 art 6 s 10; 1994 c 510 art 4 s 9; 1997 c 84 art 6 s 23