TAXPAYER BILL OF RIGHTS Both the United States Congress and the Minnesota Legislature have enacted a Taxpayer Bill of Rights that governs many taxpayer relationships with the Internal Revenue Service and the Minnesota Department of Revenue. These laws formalize and standardize many audit, appeal, and collection procedures and clarify rights and protections available to taxpayers. Information on the federal Taxpayer Bill of Rights is available from the IRS at Taxpayer Bill of Rights. It is also available in Publication 1, Your Rights as a Taxpayer . Information on the Minnesota taxpayer rights is available on the Minnesota Department of Revenue at Taxpayer Rights or by calling the Department of Revenue. ELECTRONIC FILING OF TAXES Electronic Payment Requirements - Minnesota Minnesota law requires some businesses pay their state taxes and fees electronically. If you meet the requirement for any tax or fee listed below during the last 12 months ending June 30, you must pay all Minnesota business taxes electronically starting January 1 of the following year. If you are required to pay business taxes electronically for one year, you must continue to do so for all future years. Failure to remit electronically after notification from the Commissioner may result in a 5 percent penalty for each payment that should have been remitted electronically. The following table shows when the electronic payment requirement first applies for various business taxes. Electronic payments required if business had at least: Alcoholic beverage tax $10,000 in tax Cigarette and tobacco tax $10,000 in tax Corporation franchise tax $10,000 in estimated tax payments Corporation franchise for nonprofits $10,000 in tax Fiduciary income tax 100 trusts Insurance premium taxes $10,000 in tax Lawful gambling tax $10,000 in tax Metropolitan landfill fee $10,000 in tax MinnesotaCare taxes $10,000 in tax Petroleum tax All electronic Sales and use taxes $10,000 in tax Withholding tax $10,000 in tax In other words, if a business collects more than $120,000 in sales taxes annually, but its only other tax is $10,000 in employee withholding taxes, both the sales tax and the withholding taxes must be paid electronically. For this purpose, the Minnesota Department of Revenue measures the tax collected or owed for the period from July 1 to June 30 of the following year, not the calendar year.
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