Update: Filing Minnesota Tax Returns with Federal Adjustments

The due date is approaching for 2017 Minnesota income tax returns. The Minnesota Department of Revenue is providing guidance on filing returns with Schedule M1NC, Federal Adjustments, before possible changes to Minnesota law during the 2018 Minnesota Legislative Session.

What if I submitted my client’s return without Schedule M1NC?

Wait until the end of the 2018 Minnesota Legislative Session. Whether an amended return will be necessary depends on what action the Minnesota Legislature takes. We are monitoring the legislative session and will update you if you need to amend your client’s return.

What if I submitted my client’s return with an incorrect Schedule M1NC due to timing issues with software updates?

Wait until the end of the 2018 Minnesota Legislative Session.

If	Then
Any federal conformity provisions are not adopted and signed into law	You will need to amend your client’s return if your software omitted any federal adjustments on the original return.
All federal conformity provisions are adopted and signed into law	See “What if I submitted my client’s return with Schedule M1NC?” below.

 

What if I submitted my client’s return with Schedule M1NC?

If Minnesota conforms to all or some of the provisions in the federal tax law and Schedule M1NC is changed or no longer needed, we will do one of the following:

• Make changes to your client’s return, if possible. We will send them a letter explaining the changes and issue a refund.
• Send your client a letter requesting more information about their return. We will use that information to make changes to their return, if possible. We will send them a letter explaining the changes and issue a refund.
• Send your client a letter requesting them to amend their return, if we cannot make changes to their return.

How will I receive updates on federal conformity?

We will continue to monitor the 2018 Minnesota Legislative Session and email you any updates.

For the latest information on federal adjustments reported on Schedule M1NC, see our Federal Adjustments webpage.