Minnesota Proposes Amendments to Combined Group Rule

Amendments have been proposed to the rule governing Minnesota combined group corporate income tax returns. The amendments would update the current rule to reflect statutory changes made by the Minnesota legislature in 2009 and 2013.

Proposed Amendments to Combined Group Rule

The Minnesota Department of Revenue has proposed the following changes to bring the rule into conformity with the underlying statute:

  • remove the requirement that a corporation be subject to Minnesota tax in order to be the designated member on the unitary business group’s return;
  • remove the requirement that a corporation be subject to Minnesota tax in order to be a member on the unitary business group’s return; and
  • repeal the subsection that requires a unitary business group designated to apportion each member’s Minnesota tax liability separately and then combine each member’s liability on the group’s Minnesota return.

The department notes that these amendments do not substantive policy issues and do not affect how Minnesota taxpayers file their taxes.

Comment Period for Proposed Combined Group Rule

Interested parties are invited to submit written comments concerning the proposed regulation. Comments may be submitted via:

  • the Minnesota Office of Administrative Hearings website; or
  • 600 North Robert Street, P.O. Box 64620, St. Paul, Minnesota, 55164-64620

Comments on the proposed changes must be submitted by 4:30PM on Monday, December 17, 2018.

The full text of the proposed rule is available at https://speakup-us-production.s3.amazonaws.com/uploads/attachment/file/5c094a084425380a81017f19/Proposed_Rules.pdf.

Rulemaking: Amendment to Corporate Franchise, Combined Group Corporate Franchise Returns (Good Cause Exempt Rulemaking), Minnesota Department of Revenue, December 10, 2018; Amendments to Rules Governing Combined Group Corporate Franchise Returns, Minnesota Rules, 8019.0405, Minnesota Department of Revenue, December 10, 2018

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