sales tax outsourcing

Stop checking the mail if you do business in Minnesota.  Like most states, Minnesota is suffering from the effects of the economy.  So much so, it has suspended certain business related tax refunds.  While this suspension will not affect individual taxpayers, businesses expecting refunds associated with capital equipment, sales tax, and corporate franchise taxes are going to have to wait until things improve.   There is no definitive timetable on when the issuance of checks will resume.  However, interest will continue to accrue and will be paid.  The legislature approved this suspension in L. 2010 § 6 (1st S.S.). ( Business tax refund delays, Department of Revenue, 10/21/2010 .)

A number of states are experiencing similar effects from the economy and some have been delaying the payment of refunds for some time now.  If you are experiencing delays in refunds, you may be afforded an opportunity to take credits against current and prospective tax liabilities - under certain conditions and in certain states.  Not all states allow this practice and you should check with your sales tax advisor or refer to the state statutes before pursuing this remedy. 

Jeff Meigs

Written by Jeff Meigs