Preparer’s Paper-Filing Fee

You are required to e-file all Minnesota tax returns if you are in the business of preparing tax returns and you expect to prepare more than 10 Minnesota tax returns this year. This requirement also applies to preparers in other states.

The requirement does not include returns you prepare for homestead credit refunds, renter’s property tax refunds, amended income tax returns, or returns filed with other states.

For this requirement, your business as a whole is the “preparer.” If you have employees who prepare returns, the total number of returns prepared by all of your employees count toward your total. If the business operates from several locations, the total of returns prepared by all locations count toward your total.

If you are required to e-file Minnesota returns or wish to become an authorized e-file provider, see the “How to Become an Authorized E-file Provider” section.

These requirements apply to all individual income, corporate franchise, S corporation, partnership, and fiduciary income tax returns. 

This includes:

• Form M1, Individual Income Tax
• Form M2, Income Tax Return for Estates and Trusts
• Form M3, Partnership Return
• Form M4, Corporation Franchise Tax Return
• Form M8, S Corporation Return

The fee and requirement to file electronically are based off the total number of all of these forms you and your business file.

For each original Minnesota form you prepare, keep a count of how many are filed on paper or electronically. Keep the total number of paper and e-filed returns with your records.

The fee is $5 for each original form that is filed on paper that could have been filed electronically. 

You will also need to pay the fee for returns you filed on paper because:

• Your software does not support electronic filing. To avoid fees, you should choose a package that allows for Minnesota e-filing. You can find a list of software on our Filing Software for Tax Professionals page.
• Your software does not support all forms. There may be exceptions because of software or other limitations, and we will review them on a case-by-case basis. The paper-filing fee will apply if the return was otherwise eligible for e‑filing.
• Your client is a nonresident or part-year resident of Minnesota.

To determine the fee you are required to pay, multiply $5 by the number of eligible returns you prepared that were filed on paper. Do not send $5 with each paper return you file. Wait to send all paper fees at once.

Use Form PFF, Preparer’s Paper-Filing Fee, to determine the fee based on the number of paper returns filed that did not apply to the exceptions. Send us your completed Form PFF at the same time you pay the fee.

Exceptions
Revenue will waive the fee only if we or the IRS require a Minnesota or federal return to be filed on paper. If this is the case, write down the reason and keep it with your records.

Example: When John tried to transmit his client’s federal return, the IRS rejected the Social Security Number. Because of this, he can no longer e-file the Minnesota return. Since the IRS requires John’s client to file a paper federal return, we will waive the fee for filing a paper Minnesota return. 

If a taxpayer asks you to file a tax return by paper, check the appropriate box on the return. This fee does not apply to returns that taxpayers ask you to file by paper.

When do I pay?

Payments are due by:

• June 15 for paper returns filed between January 1 and April 15 of the year
• January 15 of the following year based on paper returns filed between April 16 and December 31

If the due date falls on a weekend or holiday, payments you make electronically or postmark on the next business day are considered on time.

If no paper returns are filed, you do not owe a fee, and there’s nothing for you to do for that installment period.

How do I pay?

Send your payment electronically or by check based on your total paper returns filed during the period.

Electronically
Pay electronically using our e-Services payment system.

You will need:

• Your identifying number (Minnesota Tax ID Number or Social Security Number) that you provide in the preparer information area on the returns you prepare. If you provide your Preparer Tax Identification Number (PTIN) on the returns, you must use your Social Security Number to pay your paper-filing fees
• The four-digit calendar year (not the tax year) for which you are making the payment
• Your payment and banking information (routing and account numbers). You must use an account not associated with any foreign banks.

To Pay Electronically through your e-Services account

1. Log in to e-Services.
2. Select your Paper Filing Fee account.
3. Under the I Want To menu, choose Manage payments.
4. If you use your Social Security Number, choose Manage payments under the I Want To menu. 
5. Select For an account I do not have online access to.
6. Enter the requested information. When you are done, you will be given a confirmation number and a date/time stamp. Record this information and keep it with your records.

Pay by Check

1. Go to our payment voucher system.
2. Use your identifying number (Minnesota Tax ID or Social Security Number) that you provide in the preparer information area on the returns you prepare. If you provide your PTIN on the returns, use your Social Security Number to pay your paper-filing fees.
3. Mail the voucher with your check or money order to the address provided on the voucher.
4. Your check authorizes us to make a one-time electronic fund transfer from your account. You will not receive your cancelled check. 

To e-file returns, you must become an authorized IRS e-file provider. For details, see Become an Authorized e-File Provider on the IRS website.

To see a list of department-approved software vendors, see Filing Software for Tax Professionals.

For each return you prepare, track if it was filed electronically or by paper. For each return that is ineligible to e‑file, you must also document the reason why it was ineligible. If the return was filed on paper, you will need to substantiate why you did not assess a fee. Your records must be available if we request them.