Friday, March 21st, the Legislature passed a federal conformity bill and Governor Mark Dayton signed it. Some of the changes in the bill affect tax year 2013.
The Minnesota Department of Revenue is working right now to identify the changes and has sent us the following guidance regarding our clients’ tax forms:
If your client has already filed, and the return is affected by the changes, they will receive notification from us. Please tell them not to do anything until they receive direction from us.
One of three things will happen with the return. The department:
1. Will fix the return and send the taxpayer a letter explaining how it was fixed.
2. Will send a letter to the taxpayer requesting more information and use that information to fix the return. They will receive a letter explaining how it was fixed.
3. Will not be able to fix the return. If this happens, the taxpayer will receive a letter explaining the return can’t be fixed. If this happens, they will need to file an amended return to get the benefits of the law changes that apply to them.
If your client has not filed, please wait to file their return. We are working to get new forms and instructions to you by April 3.
Rest assured, our tax staff at BWK are also working diligently to review and understand the effects this new legislation will have on your taxes for 2013 and forward.