This 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. The new provisions stipulate 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, for subsequent taxable periods, the relevant tax laws or interpretations must not have materially changed, and the commissioner must not have issued any new guidance on the matter.

Additionally, the bill specifies that in the case of an audit, the limitations on assessments apply only to issues specifically addressed in the audit where erroneous advice was given. The effective date for these provisions 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 provided by tax officials.

Statutes affected:
Introduction: 270C.33