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Last Updated: 2/23/2016

Voluntary Disclosure Agreements

S corporations often discover they had nexus with Minnesota – a taxable activity or presence in the state – for years they didn’t file returns in Minnesota.  If you are one of those firms, we encourage you to have a representative contact the Department of Revenue in order to work out a voluntary disclosure agreement.

You may remain anonymous during the review process and achieve immediate compliance with Minnesota tax laws once an agreement is executed and you fulfill its terms.

The look-back period is generally four years (3 look-back years and 1 current year that is ready and available to be filed).

The initial contact for voluntary disclosures is usually a “good faith” letter from a tax attorney or other representative on behalf of a client.  This notice typically does not name the client, but describes the situation and requests an agreement with us. 

In your request letter, you must include the following:

  • Description of the Minnesota activities that exceeded Public Law 86-272 for the years involved
  • Date taxable activities began in Minnesota
  • Statement that the taxpayer is not currently under review by the Minnesota Department of Revenue for tax obligations
  • Statement that the taxpayer has not been contacted by the Minnesota Department of Revenue regarding compliance or audit of income/franchise tax
  • Statement of how the taxpayer files their federal income tax
  • Taxpayer’s taxable year-end
  • Approximate liability by year for the last 4 years (3 look-back years and 1 current year that is ready and available to be filed)
  • Contact information for you or your representative, including an email address

Once finalized, the agreement:

  • Spells out the returns to be filed
  • May reduce or eliminate penalties to be paid

To initiate a voluntary disclosure agreement, have your representative call Shannon Nelson at 218-735-3145 or write to her at:

Minnesota Department of Revenue
Attn: Shannon Nelson
230 1st St S, Suite 102
Virginia, MN 55792