Modernizing tax administration, strengthening partnerships at the Minnesota Department of Revenue
January 9, 2025 | Corey Butler
In his address to attendees at the 2024 MNCPA Tax Conference, Commissioner Paul Marquart of the Minnesota Department of Revenue provided an in-depth update on the department's operations, initiatives and plans for the future.
Marquart began by emphasizing the department's efficiency, managing the
collection of more than $33 billion in revenue annually with an administrative cost of just 0.6% — 15% lower than the national average. This efficiency has allowed the department to increase returns processed by 4.2% in the past year.
Marquart said protecting taxpayers is a top priority for the department. Through audits and collections, they were able
to recover $487 million last year — funds that would have otherwise gone uncollected. Marquart also highlighted the success of the new child tax credit program, which provided $560 million in benefits to 451,000 children, with 102,000 families using paid tax preparers.
Looking ahead, the department is rolling out several modernization initiatives for 2025. This includes the
introduction of individual e-services, which will allow taxpayers to file their returns on a mobile device. The department is also implementing a first-of-its-kind advanced periodic child tax credit payment system, providing families with more frequent installments to enhance the credit's impact on child poverty.
To further enhance transparency and predictability for taxpayers, Marquart said the department is working on legislation to improve the process for assessments in response to Minnesota Tax Court decisions. This includes committing to timely responses and providing clear explanations when the department disagrees with a court ruling and will not be following the decision.
Throughout his presentation, Marquart emphasized the importance of the department's
partnership with tax professionals. He provided his personal cell phone number, encouraging CPAs to reach out directly with any concerns or questions. The commissioner also asked for feedback, highlighted opportunities for tax preparers to engage with the department and shape its processes.
Marquart addressed several questions from the audience, covering topics such as the advanced tax credit, federal net operating losses, the e-bike rebate program, and the potential impact of federal tax changes, including the expiration of some changes passed in the 2017 Tax Cuts and Jobs Acton Minnesota's conformity.
By prioritizing efficiency, taxpayer protection, modernization and stronger partnerships, the Minnesota Department of Revenue is positioning itself as a leader in state tax administration, Marquart said. These initiatives aim to
benefit both taxpayers and tax professionals alike, making compliance easier and more transparent.
As the department continues to evolve, Marquart said a commitment to open communication and collaborative problem-solving will be crucial in maintaining the trust and cooperation of all parties.
This blog was created using artificial intelligence.
Topics: Government, MNCPA Programs & Activities
Corey Butler
Corey Butler is the MNCPA communications manager, working to enhance the professional reputations of members through content, media relations and public affairs. He's been with the MNCPA since 2013. Corey keeps busy outside of the MNCPA spending time with his wife and children, serving on his local school board, volunteering in his community and catching up on long-lost hobbies. Corey enjoys the works of John Steinbeck and Rankin/Bass Productions, and Paul Bunyan, Robin Hood and Santa Claus lore. You may reach him at 952-885-5530 or cbutler@mncpa.org.
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