Filing Past-Due Returns

Generally, you must file a Minnesota return if you have Minnesota gross income that meets or exceeds the minimum filing requirement for the year. (See Minimum Filing Requirements.)

If your Minnesota gross income is less than the requirement, you should file a Minnesota return to claim a refund if any of these apply:

• You had Minnesota tax withheld
• You made estimated tax payments to Minnesota
• You qualify for refundable credits

If you must file a Minnesota return, you should do so even if you owe tax and cannot pay the full amount.

Full-Year Residents

Your Minnesota gross income includes income you received from all sources, regardless of where it was earned or where the property or business that produced it was located. This includes:

• Wages, salaries, fees, commissions, tips, and bonuses
• Unemployment or reemployment compensation
• Interest and dividends
• Alimony
• Farm income
• Gross income (income before deductions or expenses) from a business
• Capital gains
• IRA distributions, pension, profit sharing, and annuity payments
• Gross rents and royalties
• Income received from an estate or trust
• Income from the sale of property or distribution of business assets
• Gross winnings from gambling

Part-Year Residents

As a part-year resident, your Minnesota gross income includes any income you received from all sources (including sources not in Minnesota) while a Minnesota resident, and any income you earned in Minnesota or from sources in Minnesota while you were a nonresident.

For details, see Income Tax Fact Sheet 2, Part-Year Residents.

Nonresidents

As a nonresident, you must file a Minnesota return if your gross income from Minnesota sources meets or exceeds the minimum filing requirement for the year ($13,825 for 2023).

For details, see Income Tax Fact Sheet 3, Nonresidents.

Because the Minnesota return begins with federal adjusted gross income, you must complete a federal return before completing your Minnesota return. When you file your Minnesota return, you must include a copy of your federal return and Schedule M1W showing Minnesota income tax withheld.

If you filed a federal return but are unable to locate a copy, get an IRS transcript online or call 1-800-829-1040.

If you need wage and withholding information, contact your employer. If you are unsure of who your employers were, get a wage and income statement from the IRS or contact them.

If You Expect a Refund

You must file your return within 3½ years from the regular due date to receive a refund. You must file even if you intend to forfeit your refund or missed the 3½-year deadline.

If you are eligible for a refund but owe Minnesota taxes or debt to certain public agencies, we will apply your refund to the amount you owe. If your debt is less than your refund, you will receive the difference.

Exception: The running of the 3 ½ year refund period may be suspended during any time you could be considered financially disabled as defined in Internal Revenue Code, section 6511(h). Being financially disabled means you cannot manage your financial affairs due to a medically determined physical or mental impairment. We will require proof of your disability. See IRS Revenue Procedure 99-21 for statements you will need to enclose with your return.

If You Owe Additional Tax

If you file your return late and owe additional tax, you will owe penalties and interest. If you need assistance in calculating the correct amount of penalties and interest, contact us. Otherwise, you may pay the tax you owe when you file your return and we will bill you for the remaining penalties and interest.

If you are unable to pay in full, pay as much as possible when you file your return, and continue to make payments until we contact you. If you make a payment after filing your return or before we contact you, write your Social Security Number and indicate the year for which the payment is intended on each check. Create a payment voucher through our Payment Voucher System, then send it with your payment to the address listed on the voucher.

If we agree to establish a payment plan, you must make payments by electronic funds transfer. Interest will continue to accrue on the unpaid tax and penalties until the balance is paid in full. For details, see Payment Agreements. You will be billed for any amount owed. If you fail to make payment, we will begin collection action.

We will assess penalties using the rates that are in effect for the year of the return you are filing. The interest rate is determined every year.

Late Filing Penalty

There is no late filing penalty as long as you file your return within six months of the due date. If you do not file within six months, we will assess a late filing penalty of 5% of the tax not paid within six months of the due date.

Late Payment Penalty

If you pay your tax after the regular due date, we will assess a late payment penalty of 4% of the tax not paid by the due date. If you do not pay the tax within 180 days after filing the return, we will assess an additional extended delinquency penalty of 5% on the unpaid tax.

Penalty for Fraudulently Claiming a Refund

If you file a return that fraudulently claims a refund, will assess a penalty of 50 % of the fraudulently claimed refund.

Interest

Interest is charged on any unpaid tax and penalty and is calculated from the regular due date of the return to the date the balance is paid in full. The rate of interest is determined every year. Rates in effect for recent years are as follows:

Penalty Abatements

We may cancel penalties if circumstances beyond your control prevented you from filing or paying your taxes on time.

If you received a notice from us stating that we assessed a penalty and you want to request an abatement, send a letter within 60 days from the date of the first written notice. In your letter, explain the specific events or circumstances that prevented you from filing or paying on time.

You will receive notice from us telling you whether we approved or denied your abatement request.

Penalty for Underpaying Estimated Tax

If you owe tax of $500 or more for any tax year, you may owe a penalty for underpayment of estimated tax. See Schedule M15, Underpayment of Estimated Income Tax by Individuals, Trusts and Partnerships, for the year you are filing to determine if you owe this penalty.

If a return has not been filed, there is no time limit for when we may assess tax. The general rule is that returns are subject to audit within 3½ years of the regular due date or the date the return is filed, whichever is later.

Minnesota law provides that if you are required to file an income tax return and do not, we may file a return for you or issue an order of assessment. Preparing your own return will likely result in a more accurate computation of your tax liability. We prepare these returns based on available information, which may not include exemptions, deductions, or credits.

If we file a return for you or issue an order of assessment, we will add appropriate penalties and interest. If you do not pay the tax within 180 days after we file our return, we will assess an additional extended delinquency penalty of 5%.

If you have tax problems, taxpayer rights violations, or concerns that cannot be resolved through the normal channels, write to:

Minnesota Department of Revenue
Taxpayer Rights Advocate
P. O. Box 7335
St. Paul, MN 55107-7335