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Residency Audit Process
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During an audit, we consider information provided by you and from other sources. The audit process is interactive, with both sides able to ask questions and clarify information being considered.
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The auditor will begin the audit by sending you a letter. The letter notifies you of the audit and requests information. The auditor will also send you a Residency Questionnaire and information on your rights and responsibilities during the audit.
If you want an attorney, accountant, or other individual to represent you during the audit, complete and send us Form REV184i, Individual or Sole Proprietor Power of Attorney.
The auditor’s initial letter allows you 30 days to gather the requested information. If you need more time, you may work with the auditor. You will send the auditor your completed questionnaire, documentation to support your questionnaire answers, and other information. Providing complete information will help us correctly identify your domicile.
What happens when the auditor receives my information?
The auditor reviews your submitted documents along with information from other sources. They may send you another letter if they have questions or need more information.
If the auditor determines you do not owe Minnesota tax, they will send you a letter closing the audit.
If the auditor determines you owe Minnesota tax, they will create an audit report. (See Final Outcome.)
The auditor documents their findings in an audit report and shares it with you. Your response will determine the next step.
| If you |
Then |
| Offer more information |
The auditor will consider the information you provide and, if appropriate, update the audit report. |
| Agree with the audit report |
The auditor will give you a Consent to Change (CTC). After you sign the CTC and pay the amount due, they will close your audit. |
| Disagree with the audit report |
You will receive a Tax Order showing your additional tax due and explaining your appeal rights. |
You can file an administrative appeal with the Minnesota Department of Revenue or appeal directly to the Minnesota Tax Court. In either case, you must appeal within 60 days of the Notice Date on the tax order (found on the first page). For details, see Appealing an Audit.
An administrative appeal is an independent review of your case. A department appeals officer reviews the information used in the audit. Once the appeals officer reaches a decision, they issue a Notice of Determination to inform you of the results.
If you filed an administrative appeal and you disagree with our determination, you may appeal to the Minnesota Tax Court.
Appealing to Tax Court
For information about filing an appeal in tax court, 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
