The Minnesota Department of Revenue will start sending out more than 540,000 tax returns impacted by tax law changes to Unemployment Insurance compensation and Paycheck Protection Program loan forgiveness.
“We know these refunds are important to those taxpayers who have experienced hardships over the last year and a half,” Revenue Commissioner Robert Doty said in a statement. “We made the decision to adjust nearly all of these returns on our end so that impacted taxpayers would not need to take the time and resources to file an amended return, which would further delay the refund they’re due.”
Staff has been working through the summer to update 2020 tax forms to reflect the legislative changes made in July and build a system able to adjust over 540,000 impacted returns.
Revenue will begin manually processing about 1,000 individual income tax returns per week to start. The number of returns processed per week will increase as system testing advances with a goal of processing 50,000 returns per week by late October.
“The Department of Revenue issues more than 2.9 million income and property tax refunds every year,” Doty said. “We have a process in place, and we are following that process. With taxpayer dollars at stake, we must always find the balance between speed and accuracy.”
Over 2,000 returns impacted by Paycheck Protection Program changes filed at the corporate entity level have started to receive refunds. These will continue to go out through September. These returns are processed manually and don’t require system development.
Letters were sent in mid-August to less than 8,000 individual income taxpayers who will need to file amended returns to receive the benefits.
This article was originally posted on PPP, UI tax refunds start this week in Minnesota