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Revenue Notice #04-07: Corporate Franchise Tax - Petition for Use of Alternative Method of Allocation

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The Commissioner of Revenue has published Form ALT, Application for Alternative Methods of Allocation so that taxpayers may comply with Minnesota Statutes, section 290.20, subdivision 1a, if they choose to petition for another method of allocation of income. Taxpayers petitioning on this form, and filing the information required thereon, will meet the requirements for filing a petition pursuant to Minnesota Statutes, section 290.20.

Minnesota Rules, part 8020.0100, subpart 3, requires that a taxpayer include the following information on a petition:

  1. The name, address, and tax identification number of the taxpayer;
  2. The state of incorporation and location of the principal office or place of business of the taxpayer;
  3. The tax year or tax years of the petition;
  4. A statement of the kinds of business activities of the taxpayer from which income was derived;
  5. A summary statement of facts by which the taxpayer demonstrates the unfairness of Minnesota Statutes, sections 290.17 or 290.20 as applied to the taxpayer’s income, and the fairness of the method of allocation proposed by the taxpayer; and,
  6. A hypothetical computation of Minnesota taxable net income in accordance with the proposed method of allocating income.

Petitions using Form ALT are in a form required by the commissioner pursuant to Minnesota Statutes, section 290.20, subdivision 1a. Use of Form ALT will ensure that the commissioner recognizes a petition as such, and will also ensure that the taxpayer substantially complies with the requirements of Minnesota Rules, part 8020.0100. Form ALT is available from the Department of Revenue, Mail Station 5100, St. Paul, MN 55146 5100.

 

Terese M. Mitchell, Director

Appeals and Legal Services Division

Publication Date: 8-16-04

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