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Last Updated: 12/10/2018

Appealing an Audit

You can file an administrative appeal with the Minnesota Department of Revenue or appeal directly to the Minnesota Tax Court. You must file the appeal within 60 days of the date on our tax order.
 

What if I need more time to prepare my appeal?

You can request a 30-day extension within the 60 day appeal period by writing to us at the address provided on the audit report. Interest will continue to accrue on any unpaid debt.
 

How do I appeal to the Department of Revenue?

Send us a letter with the following information:

  • Your name and address
  • Your Social Security number
  • The type of tax involved
  • The date of the order you are appealing (it is listed on the order)
  • The tax years or periods involved, and the amount of tax for each year or period
  • The findings in the order you disagree with and why
  • Your signature or that of your authorized representative (the person who is named on your Form REV184, Power of Attorney)

You must also include any documents or information that supports your appeal. If you did not file a tax return and you agree that you should have filed, you must include that tax return with your appeal.

If you want to meet with us to discuss your appeal, ask for an informal meeting in your letter.

Mail your appeal letter and other documents or information to:

Appeals and Legal Services
Mail Station 2220
St. Paul, MN 55146-2220

What if my appeal has been denied?

You may appeal to the Minnesota Tax Court within 60 days of the Notice Date on the tax order (found on the first page). For more information, go to the Minnesota Tax Court website or contact them directly:

Mail:    Minnesota Tax Court
            Minnesota Judicial Center, Suite 245 
            25 Rev. Dr. Martin Luther King Jr. Blvd.
            St. Paul, MN 55155
Phone: 651-539-3260
Fax: 651-297-8737
Email: info@taxcourt.state.mn.us
 

What if I disagree with my penalty?

We may cancel your penalty if you can show you had reasonable cause for not complying with the tax laws. Send us a written explanation to back up your argument. You should still pay your tax and interest due because interest will keep accruing until we advise you of our decision. If we decide in your favor, you will receive a refund of any overpayment.
 

What if I received incorrect written advice from a Department of Revenue employee and have been penalized?

We will cancel your penalty. However, that does not reduce the amount of additional tax or interest you owe. If we deny your request to cancel a penalty, you have 60 days to appeal to the department or the Minnesota Tax Court.
 

Will I be charged interest?

We assess interest on any unpaid tax and penalty after the tax return’s due date. Interest is not a fine, so it’s not the same as a penalty. We rarely cancel the interest charge.
 

Does the audit affect other returns I filed?

You should review your recent returns to see if similar changes are needed. If so, you must file amended income tax or property tax refund returns and pay any additional tax and interest you owe. If you do not amend your returns, we may audit you and assess additional penalties and interest.
 
To amend your returns, use Form M1X, Amended Minnesota Income Tax Return, and Form M1PRX, Amended Homestead Credit Refund (for Homeowners) and Renter's Property Tax Refund. If you need to amend prior year returns, see Prior Year Forms.
 

I agree with the tax order. How do I make a payment?

To pay electronically, log in to our e-Services system or call 1-800-570-3329. You will need your Social Security number and banking information.
 
To pay by mail, make your check payable to Minnesota Revenue. Send your check – along with the payment voucher that came with your tax order – to the address listed on the voucher.
 
Pay as much as you can by the due date, and continue to make payments until you are contacted by our Collection Division. They can help you set up a payment plan for the remaining balance.
 

What if I paid more than I should have?

If you paid more tax than was owed, you can file for a refund using Form M1X. To claim a refund, you must file within 3½ years of the due date of your original return or within 1 year of the date on the tax order, whichever is later. 
 

Are payment agreements available?

Yes, if you are unable to pay your liability in full. For more information, see Payment Agreements.
 

What if the IRS revised the audit that Minnesota is basing the additional tax liability on?

Sometimes we audit your Minnesota return and assess additional tax based on information from an Internal Revenue Service (IRS) audit of your federal return. If you successfully appeal an IRS audit, and the resulting changes affect your state taxes, you also should appeal our audit. Be sure to include all IRS documents showing the IRS reversed or revised its original audit.
 
To check the status of a federal audit, call the IRS at 1-800-829-1040.
 

What if I don't respond to the audit I received?

If you do not respond within 60 days, we will take additional steps to collect the money you owe. For more information, see “I owe the Minnesota Department of Revenue. Now what?.”