The Minnesota Department of Revenue (MDR) generally has 3.5 years from the date a tax return was due to assess additional tax. If the MDR audits a taxpayer’s return and increases the tax liability, how much time does the taxpayer have to appeal and contest the additional assessment? Below are the general time frames within which a taxpayer may appeal an assessment by the MDR:
- 60 days. Generally, a taxpayer has 60 days from date on the initial Order from the MDR to appeal the MDR’s assessment. A taxpayer may appeal the MDR’s initial Order either administratively to the MDR or appeal directly to the Minnesota Tax Court. Either appeal must be made in writing and comply with the MDR or Tax Court requirements for an appeal. Find more information on these requirements for the MDR here or here and the Minnesota Tax Court here or here.
- 30-day extension. If a taxpayer needs additional time to file their administrative appeal to the MDR or appeal to the Minnesota Tax Court, the taxpayer may request 30 additional days to submit their appeal. This request must be made in writing, and the request must be made within 60 days from the date of the MDR Order.
If the MDR issues its initial Order, the taxpayer appeals administratively to the MDR, and the taxpayer does not agree with the result of the MDR administrative appeal, the taxpayer generally no longer has a right to continue to appeal administratively with the MDR. Generally, the taxpayer must take any further appeal to the Minnesota Tax Court. As noted above, the taxpayer must file their appeal with the Minnesota Tax Court within 60 days from the date of the MDR administrative appeals Order. The taxpayer may also request, in writing, an additional 30 days to file their appeal with the Minnesota Tax Court, and this request must be made within 60 days from the date of the MDR administrative appeals Order.
It is critical that taxpayers timely file their administrative appeal or appeal to the Minnesota Tax Court. If a taxpayer fails to timely file their appeal, the taxpayer loses their right to appeal the MDR determination. A taxpayer should carefully examine all correspondence received from the MDR, including MDR Orders, to determine the taxpayer’s deadlines for submitting information and documentation to the MDR and to determine their deadlines for submitting appeals to the MDR or the Minnesota Tax Court.