Third-Party Bulk Filers

As a third-party bulk filer, you must:

• Register for a withholding tax account with Revenue as a third-party bulk filer
• Electronically file clients’ quarterly and annual returns, Forms W-2, Forms W-4MN, and Forms 1099 on time and as required
• Electronically make deposits for clients on time and as required
• Electronically update client lists monthly
• Keep client funds in an account separate from your own funds
• Permit us to conduct scheduled or unscheduled audits
• Provide us with a copy of any client contract upon request
• Disclose in writing to potential clients that:
  • You may invest client funds and keep the earnings from those investments
  • If you incur losses on the investments, you are required to make tax deposits on behalf of your clients using your own funds
  • No state or federal agency assumes responsibility for the financial solvency of your business

You cannot do any of these as a third-party bulk filer:

• Set up Minnesota Tax ID Numbers for clients
• Update client addresses
• Request information outside of tax periods you are registered for

If we determine your continued business operation presents a risk of loss to your clients, we can suspend your registration and notify your clients of the suspension.

If we determine you are not in compliance with the law, we may revoke your registration, assess a penalty, or both.

If you have a Minnesota Tax ID Number, call 651-282-9999 or 1-800-657-3594 and tell us you are registering as a third-party bulk filer.

If you do not have a Minnesota Tax ID Number, apply for one online. You will indicate you are a third-party bulk filer when you register.

You must provide this information to register:

• Federal Employer Identification Number (FEIN)
• Name (legal and trade names)
• Address (street address of the business; mailing address, if different; and address for client account discrepancy notifications, if different)
• Phone number of the business and fax numbers, if available
• Social Security Numbers, names, and addresses of all company owners and officers
• Legal organization type

1.  Log in to our e-Services system.
2.  Under your Withholding Tax account, select Manage clients.

• Note: If you have third-party access to other accounts, you will need to locate your business account first.

3.  Under Manage Client List, select Add a Client.

To add clients to your client list, they must have a Minnesota Tax ID Number and a withholding tax account. 

If your clients do not have a Minnesota ID number, they can go to www.revenue.state.mn.us and select Register for a Tax ID under Top Tasks. 

Clients can add a withholding tax account online or by calling 651-282-5225 or 1-800-657-3605. Your client should provide you with a copy of their confirmation letter. 

You must make all deposits (payments) electronically using e-Services. Use one of these options to make a payment for your client:

• e-Services Payment
• Automated Clearing House (ACH) Credit Payment

e-Services Payments
Log in to e-Services to make electronic payments. You may either make a single payment or attach a payment file.

• Make a single payment (key and send):
  Under your Withholding Tax account, select Manage Clients. Under Manage Payments, select Make a payment for another account.
• Attach a payment file:
  Under your Withholding Tax account, select Manage Clients. Under Manage Payments, select Upload a bulk file of payments.

You will receive a confirmation number for each file received and a summary for each payment. The payment file summary will show payment information that either:

• Appears to be error-free based on the figures provided
• Has errors that need to be corrected and then resubmitted

Automated Clearing House (ACH) Credit Payments
An ACH credit is a payment you request through your bank. Some banks charge a fee for this service. If your bank offers ACH credit services, you will need to provide them:

• Your 7-digit Minnesota Tax ID Number
• Revenue’s banking information
• Your payment information in standard CCD+ file format with the correct addendum

You must file all returns electronically by logging in to e-Services. Use one of these options to file a return for your client:

• File a single return (key and send):
  Under your Withholding Tax account, select Manage clients. Under Manage Returns, select File a return.
• Attach a return file (spreadsheet format):
  Under your Withholding Tax account, select Manage clients. Under Manage Returns, select Upload a bulk file of returns.

You’ll receive a confirmation number for each file received and a summary for each return accepted. The return file summary will
show:

• Return information that appears to be error-free based on the figures provided
• Return information with errors that need to be corrected and then resubmitted

For file format details, see Withholding Tax File Formats.

For instructions, see these fact sheets:

• Withholding Tax Fact Sheet 2
• Withholding Fact Sheet 2a

You will receive a confirmation number for each file received and a summary of the Form W-2, W-4MN, and 1099 information submitted.

We send demand letters to you and your client when we do not receive their returns by the required due date. Be sure you and your clients’ addresses are current. We send the first demand letter and liquor posting letter about five days after the return due date. We send a second demand letter about 16 days after the return due date.

Generally, you may review your demand letters with the list of clients’ missing returns in e-Services five days after we send the first demand letter.