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Minnesota State Tax Updates

For the latest news and updates on Minnesota state and local tax

March 23, 2020

Additional Time to File and Pay Minnesota 2019 Individual Income Tax

The Minnesota Department of Revenue has announced that taxpayers filing their annual Minnesota Individual Income Tax return for the tax year 2019 now have until Wednesday, July 15, 2020, to file and make their payments without any penalties or interest. This grace period does not include state estimated tax payments for individual income taxes due April 15, 2020, for the 2020 tax year.

While the Minnesota due date for the corporation franchise tax remains due on April 15, 2020, under current Minnesota law, businesses receive an automatic extension to file their state return to the later of November 15, 2020, or the date of any Federal extension to file. Furthermore, the due date of April 15, 2020, has not changed for partnerships, fiduciaries, and S-corporations, as these entities will receive an automatic extension to file their state return to the date of any federal extension to file.

Please note that those taxpayers who are unable to pay may request relief from other late-file or late-pay penalties, additional tax charges, or interests, for reasonable cause or the state of emergency declarations by the president and governor due to COVID-19. Taxpayers may request relief after being notified of a penalty.

March 21, 2020

30-Day Sales and Use Tax Grace Period

The Minnesota Department of Revenue is granting a 30 day Sales and Use Tax grace period as Identified in Executive Order 20-04. The Department will not assess penalties or interest. Identified business, such as restaurants, bars, and other places with public accommodation, that have a monthly Sales and Use Tax payment due by March 20, 2020, have until April 20, 2020, to make that payment.

These businesses should still file their return by March 20. This grace period for penalties and interest is only for monthly filers and only for the March 20 payment. Businesses can request additional relief from penalties and interest for reasonable cause after April 20.

The state income tax deadline remains on April 15. Learn more here.

July 2019

IRC Conformity

Effective May 31, 2019, federal changes are effective retroactively for corporate franchise and individuals income tax from December 16, 2016 through December 31, 2018.

State Starting Point Change

For tax years beginning after 2018 the starting point for the state return has been changed to Federal Adjusted Gross Income (FAGI) from Federal Taxable Income (FTI).

Marketplace Facilitator – Sales Tax Requirements

Beginning September 30, 2019, marketplace facilitators are now required to collect and remit sales tax if sales total $100,000 or more or have more than 200 sales in the state. This has been reduced from $250,000 per year.

SALT Updates

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