2023 Federal Conformity for Income Tax
May Affect Tax Years 2017-2022
Additional Federal Conformity Changes
We are reviewing new federal conformity changes signed into law on May 24, 2023. We will share updated guidance and tax forms for affected tax years when available. At this time, you should not amend any Minnesota returns based on these additional conformity changes.
The rules used to determine Minnesota income tax are generally based on federal income tax laws, so when federal income tax laws are changed, conforming changes to Minnesota’s income tax law must also be made. These conforming changes are made by updating Minnesota statutes to adopt the most current version of the Internal Revenue Code (IRC).
In January, Minnesota law was updated to recognize the IRC as amended through December 15, 2022. In May, Minnesota law was updated again to recognize the IRC as amended through May 1, 2023. These updates may impact previous Minnesota income tax returns. This means that many of the federal income tax nonconformity modifications reported on your 2017 through 2021 Minnesota returns are no longer required.
Who does this impact?
This may impact you if you filed a Minnesota income tax return between 2017 and 2022 with a nonconformity schedule. For more information, see our tables on form and line changes to the nonconformity schedules.
What do I need to do?
Because Minnesota has adopted federal income tax law changes that state law previously did not conform to, amended returns may be needed to correctly determine your Minnesota taxable income.
Use the updated forms and instructions on the website for the tax years you reported nonconformity adjustments along with the list below to determine if the tax law changes affect your returns. An amended return in one year may impact other years and require additional amended returns.
Review the resources below to determine if the tax law changes affect you. The statute of limitations to claim a refund has been extended to December 31, 2023, for the years that have expired statute of limitations. This extension is only for amended returns filed because of a law change in this tax bill.
If you have questions about the tax law changes, email us at firstname.lastname@example.org.