Tax Tip #1 for Tax Professionals - Preparing for the filing season

 

Welcome to the 2020 filing season! The Minnesota Department of Revenue will be sending you weekly tips from now through mid-May with plenty of helpful information. Thank you for subscribing to this email list and encourage your colleagues to subscribe as well.

 

Check your Preparer Tax Identification Number (PTIN)

Last year, we received over 40,000 Minnesota returns with expired or invalid PTINs. Taking the following steps may prevent delays in processing your client’s return during filing season:

• Renew your PTIN with the IRS on time
• Verify the accuracy of your PTIN in tax preparation software
• Ensure your PTIN is accurate on manually prepared returns

Check out our online resources

With the electronic filing season  we encourage tax professionals to check out our website and other online resources.

On our website, you can:

• Read about the latest tax law changes
• Find forms and instructions for current and prior year returns
• Sign up for email updates about various tax topics
• Look up state tax refunds received in 2019
• Learn about Error Rejection Codes
• Contact us by phone or email
• Read instructions for 2019 Individual Income Tax and 2019 Homestead Credit Refund (for Homeowners) and Renter's Property Tax Refund

Choose electronic filing and direct deposit

Electronic filing is the easiest and most convenient way to file your clients’ taxes, and direct deposit is the safest way for them to receive their refund. Before e-filing returns, wait until your software provider releases all final forms.

• 90% of all Minnesota income tax returns were e-filed in 2019
• 54% of all refunds were issued by direct deposit in 2019

There is a $5 fee for each paper-filed return you could have filed electronically. For more information, see our Preparer’s Paper-Filing Fee fact sheet.

 

Voter registration information

We will continue providing voter registration information to taxpayers who file. The link in software products will say: “Are you registered to vote at your current address? You may be eligible to vote if you are 18 years old, a U.S. citizen, a Minnesota resident, and finished with any felony sentence. You can quickly and easily register to vote online at mnvotes.org.”

 

Have your clients check their withholding

As you meet and work with your clients, make sure they have the correct amount of Minnesota tax withheld from their pay. Requirements and instructions for Form W-4MN, Minnesota Employee Withholding Allowance/Exemption Certificate have changed for 2020.

If your clients complete a new federal Form W-4, they should complete a new Minnesota Form W-4MN to determine their Minnesota withholding allowances. For more information, see our Minnesota Withholding Tax page.

 

We look forward to serving you during this upcoming filing season. By learning about the tools and resources available to you now, you will start the filing season ready to get the information you need.