The AICPA submitted a letter to the Minnesota Society of CPAs (MNCPA) in support of the society’s efforts to move partnership audit legislation in the Minnesota legislature. The letter championed the MNCPA’s work on the legislation. The bills update the reporting requirements imposed on tax payers following a federal audit, which if passed, align Minnesota law with the Federal Centralized Partnership Audit Regime.
Over the past two years, the AICPA, along with several other interested parties, worked with the Multistate Tax Commission (MTC) develop a new model statute for the consistent reporting of revenue agent reports issued following an IRS audit.
In January of 2019, the MTC formally adopted the model statute. There are two active bills in Minnesota. The preferred bill was developed with the assistance of the MNCPA and reflects the model’s provisions. If enacted, this bill will provide taxpayers clarity and certainty regarding their obligations to report federal audit adjustments to the Minnesota Department of Revenue. The legislation will also provide the Department with the ability to administer the reporting process and collect the appropriate revenue in a fair and equitable manner without an unnecessary burden on taxpayers and the Department.
“The AICPA letter supporting the MNCPA legislation was shared with legislators and provided them broader perspective on the importance of passing legislation that would create a partnership audit process that partnerships in Minnesota could use,” stated Geno Fragnito, MNCPA Government Relations Director.
Both the House and Senate version of the bills await further action in committee. Find more information on the MTC’s partnership project here.