My understanding is that Minnesota has not yet accepted the Federal extensions including the tuition & fees deduction. They might later and making it effective for 2008. Meanwhile, I have a client that would be better off taking the T&F because of his tax bracket. He is anxious for his refund. I could send in the federal and hold the Minnesota for final approval. If Minnesota does not approve the extension, then he would have been better off taking the LLC. I would have to amend. What are you Minnesota preparers doing in this case?
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Leave it up to the Client
I run into that very same scenario several times during the tax season. I'd explain it to the client and ask if they'd rather wait for thier refund (never seems to be as big a problem when they owe money) or risk paying to do an amended return later. There is a down side in either option.
On a side note....I emailed my local state representative and got a response yesterday. I told him usually a federal tax conformity bill is one of the very first brought forward in a new session. As of today none has been yet introduced. It will not be until sometime in February until one is. Our state budget is in the tank and coming in to conformity will cost the state money. The following is a quote from my local MN rep:
"One of the reasons that a bill has yet to be introduced on this matter is because there is no agreement from the Governor or Senate on passing a tax conformity bill. Therefore, the likelihood of a tax conformity being signed into law is not particularly great."
Mike Mac -
Thanks
for keeping us in the loop - I had a couple of amends, including my own, on this issue last season.
ATG"Congress has spoken to this issue through its audible silence."
Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?Comment
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