What happens when your business is being audited by the Department of Revenue? What is a MinnesotaCare tax audit? What do we look at? What happens after the audit?
These are just a few questions you may have. The following explains what you can expect.
What is the MinnesotaCare Tax audit?
The audit is a review of your business' records and tax filings to determine if you are correctly reporting your MinnesotaCare Tax. Most audits include the following steps:
- You'll be contacted by one of our tax specialists.
- We'll review your records for a specific time period.
- We'll explain any errors you have made on your returns and how you can make corrections.
- We'll recommend changes to your record-keeping to help eliminate similar errors in the future.
- We'll prepare a report at the end of the audit summarizing the changes to your tax liability.
- We'll be available in the future to help with your return and to answer your questions or concerns.
What do we look at during the audit?
We review your records to determine the accuracy of each line item on your MinnesotaCare Tax return. The following are examples of items we review and why:
- Financial statements and business tax returns-give us an overall idea of your business activities and accounting methods.
- MinnesotaCare Tax computations and supporting worksheets-to verify that your filings were prepared correctly.
- Bank statements-to verify your reported gross receipts.
- Explanation of Benefits (EOB’s)-to verify your reported exemption amounts.
- Legend drug invoices-to verify the reported legend drug exemption amounts.
What happens after the audit?
After the audit we'll send you a final audit report outlining the results. This report will include details on any additional tax, penalty, and interest you may owe, or if you are entitled to a refund.
You will have 60 days from the date of the report to respond in one of the following ways:
- Pay what you owe without additional interest being added.
- File a written informal appeal with the department’s Appeals Unit.
- File a formal appeal with the Minnesota Tax Court.
If you need more information please contact the tax specialist who conducted the audit.
For more information about the audit process and your rights during an audit: