Fellow MN Preparers - if you haven't already seen this......

[mblatour]

Here we go once again.....so late in the season. Pain in the butt.....




MN Tax Bill Update - Changes Affecting Tax Year 2013
Minnesota Department of Revenue sent this bulletin at 03/22/2014 08:26 PM CDT


Friday the Legislature passed a federal conformity bill and Governor Mark Dayton signed it. Some of the changes in the bill affect tax year 2013. You play a very important role in helping taxpayers file accurate and timely tax returns. We are working right now to identify the changes so that we can provide you with direction on how to continue filing returns. We will be holding a conference call on Wednesday, March 26 to provide you with more information. An invitation for this conference call will be sent on Monday, March 24, 2014.


In the meantime…


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.



Note: If you use a desktop version of a software product, please be sure to watch for software updates from your software company.

[rtsietsema]

Same song.....which verse?

I advised several of my clients whose returns would be affected this would happen again. Hopefully they will remember to contact me when the State contacts them.

Isn't life fun?

[JohnH]

If the state contacts them, how many do you think will call & start the conversation by saying the state says you made a mistake on their return?

[Gene V]

One from Oregon

[Revenews] Transit Self-Employment Tax - Change to Instructions


Oregon Tax
x

HENDERSON Jeffrey S * DOR Jeffrey.S.HENDERSON@oregon.gov via listsmart.osl.state.or.us


Mar 20 (2 days ago)


to revenews



For many years the instructions for Lane County Mass Transit District and Tri-County Metropolitan Transportation District self-employment taxes have stated that self-employed individuals with more than one Schedule C business may not use a loss from one business to offset a gain from another. Effective immediately, taxpayers with more than one Schedule C business may use a loss from one business to offset a gain from another when calculating self-employment earnings for the purposes of these taxes. This change applies to all tax years. If your original transit self-employment tax return was filed within three years of the due date, you may amend (change) your return and file for a refund within:

• Three years of the due date of your original return, or

• Three years of the date you filed your original return, or

• Two years of the date you paid your tax or paid any part of your tax, whichever is later.

[mblatour]

If the state contacts them, how many do you think will call & start the conversation by saying the state says you made a mistake on their return?

I just said that same thing to my husband. You'd think they'd remember this from a few years back (I'm forgetting the year, but it doesn't seem that long ago we went through this). But they don't remember it like we do! Notices from the Feds or the State always freak clients out and our phones ring off the hook. Grrrr...... I'd love to head it off somehow, but I'm just too busy to deal with it.

[JON]

I think

the State was "public" enough saying they will do the fixing. A few of the local news sources kept saying do not file hold for the changes. That is nuts, by the time the State gets the exact information to the software companies and they make the changes give it back to the State to be OK ed file if there is a change the state does the work.