Minnesota Legislature
SF 3131
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
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A bill for an act
relating to tax compliance; providing for income tax return processing; requiring
certain withholding returns be filed by electronic means; providing for a study
of certain audit positions within the Department of Revenue; providing for a
study of sales and use tax compliance assistance for taxpayers of limited English
proficiency; imposing a civil penalty; amending Minnesota Statutes 2004,
section 289A.09, by adding a subdivision; Minnesota Statutes 2005 Supplement,
sections 270C.01, subdivision 4; 289A.60, subdivision 21; proposing coding for
new law in Minnesota Statutes, chapter 270C.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2005 Supplement, section 270C.01, subdivision 4, is
amended to read:
Subd. 4.
Electronic means; electronically.
"Electronic means" and "electronically"
mean a method that is electronic, as defined in section 325L.02, paragraph (e), and
that is prescribed by the commissioner.new text begin If permitted by the commissioner, it includes a
telephone communication.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2006.
new text end
Sec. 2.
new text begin
[270C.415] INCOME TAX RETURN PROCESSING; AGREEMENT
WITH INTERNAL REVENUE SERVICE.
new text end
new text begin
The commissioner of revenue shall enter into an agreement with the United States
Internal Revenue Service to participate in a tax processing program whereby the Internal
Revenue Service processes electronically filed state returns together with the federal
returns. If possible, the ability of taxpayers to file property tax refund claims under chapter
290A with state income tax returns must be preserved.
new text end
Sec. 3.
Minnesota Statutes 2004, section 289A.09, is amended by adding a subdivision
to read:
new text begin Subd. 1a. new text end
new text begin Employer returns; electronic means. new text end
new text begin
If an employer is required to
remit deposits for wages paid by electronic means, under section 289A.20, subdivision 2,
paragraph (d), the employer must file each return for wages deducted and withheld under
section 290.92, subdivision 2a or 3, by electronic means.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for returns due after June 30, 2006.
new text end
Sec. 4.
Minnesota Statutes 2005 Supplement, section 289A.60, subdivision 21, is
amended to read:
Subd. 21.
Penalty for failure to make payment new text begin or file return new text end by electronic
means.
new text begin (a) new text end In addition to other applicable penalties imposed by this section, after
notification from the commissioner to the taxpayer that payments are required to be made
by electronic means under section 289A.20, subdivision 2, paragraph (e), or 4, paragraph
(c), or 289A.26, subdivision 2a, and the payments are remitted by some other means,
there is a penalty in the amount of five percent of each payment that should have been
remitted electronically.
new text begin
(b) In addition to other applicable penalties imposed by this section, after notification
from the commissioner to the taxpayer that withholding tax returns are required to be filed
by electronic means under section 289A.09, subdivision 1a, if returns are filed by some
other means, a penalty is imposed in the amount of five percent of the tax payable on each
return that should have been filed electronically.
new text end
new text begin (c) new text end After the commissioner's initial notification to the taxpayer that payments new text begin or
returns new text end are required to be made by electronic means, the commissioner is not required to
notify the taxpayer in subsequent periods if the initial notification specified the amount
of tax liability at which a taxpayer is required to remit payments new text begin or file returns new text end by
electronic means. The penalty can be abated under the abatement procedures prescribed
in section 270C.34, subdivision 2, if the failure to remit the payment electronically is
due to reasonable cause.
Sec. 5. new text begin JOINT STUDY BY COMMISSIONERS OF REVENUE AND
DEPARTMENT OF EMPLOYEE RELATIONS.
new text end
new text begin
In order to increase compliance with income and franchise taxes and tax laws, the
commissioners of the Departments of Revenue and Employee Relations, in consultation
with the affected bargaining units, shall study the competitiveness of compensation of
tax compliance auditors within the Department of Revenue. The study shall consider
the performance of compliance auditors, including training, experience, employment
classification, and duties. The study shall be completed by September 1, 2006, and the
commissioner of employee relations shall implement its recommendations.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6. new text begin SALES AND USE TAX; SERVICES TO TAXPAYERS WITH LIMITED
ENGLISH PROFICIENCY.
new text end
new text begin
The commissioner of revenue shall study and implement procedures and services
that will assist sales and use taxpayers of limited English proficiency in complying with
sales and use tax laws. The benefits of translating sales and use tax fact sheets, forms,
and instructions into Spanish and other languages must be considered. In addition, the
commissioner shall study how to direct taxpayers of limited English proficiency who
contact the Department of Revenue by telephone to assistance in Spanish and other
languages as determined by the commissioner. The commissioner shall report on the
results of the study and a plan to implement them to the senate and house of representatives
committees with jurisdiction over tax laws by February 1, 2007.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end