The bill amends Minnesota Statutes 2024, section 270C.33, by adding a new subdivision that establishes limitations on the assessment authority of the commissioner regarding individual income, corporate franchise, and sales and use taxes. Specifically, it stipulates that the commissioner cannot assess additional taxes if the taxpayer received erroneous written advice from a department employee, provided that the advice was reasonably relied upon and not due to the taxpayer's failure to provide accurate information. Furthermore, the bill outlines conditions under which this limitation applies, including the requirement that there have been no material changes to the relevant statutes or administrative rules after the erroneous advice was given.

Additionally, the bill specifies that for audits of prior taxable periods, the limitations on assessments apply only to issues specifically addressed in the audit where erroneous advice was provided. The effective date for this provision is set for erroneous advice given in writing after June 30, 2025. This legislation aims to protect taxpayers from additional assessments based on incorrect guidance received from tax officials.

Statutes affected:
Introduction: 270C.33