Tax donation checkoff authorization to benefit crime victims

A bill for an act

relating to public safety; authorizing a tax donation checkoff to benefit crime

victims; amending Minnesota Statutes 2024, section 270C.445, subdivisions 6a,

6b, 6c, 8, by adding a subdivision; proposing coding for new law in Minnesota

Statutes, chapter 290.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 270C.445, is amended by adding a subdivision

to read:

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Subd. 5c.

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Minnesota victims of crime account checkoff.

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A tax preparer must give

written notice of the option to contribute to the Minnesota victims of crime account, as

provided in sections 290.435 and 290.436, to corporate clients that file an income tax return

and to individual clients who file an income tax return or a claim under chapter 290A. This

notification must be included with information sent to the client at the same time as the

preliminary worksheets or other documents used in preparing the client's return and must

include a line for displaying contributions.

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EFFECTIVE DATE.

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This section is effective for taxable years beginning after December

31, 2027.

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Sec. 2.

Minnesota Statutes 2024, section 270C.445, subdivision 6a, is amended to read:

Subd. 6a.

Exchange of data; State Board of Accountancy.

The State Board of

Accountancy shall refer to the commissioner complaints it receives about tax preparers who

are not subject to the jurisdiction of the State Board of Accountancy and who are alleged

to have violated the provisions of this section, except subdivision 5a
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or 5c
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, or section

270C.4451
.

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EFFECTIVE DATE.

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This section is effective for taxable years beginning after December

31, 2027.

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Sec. 3.

Minnesota Statutes 2024, section 270C.445, subdivision 6b, is amended to read:

Subd. 6b.

Exchange of data; Lawyers Professional Responsibility Board.

The Lawyers

Professional Responsibility Board may refer to the commissioner complaints it receives

about tax preparers who are not subject to its jurisdiction and who are alleged to have

violated the provisions of this section, except subdivision 5a
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or 5c
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, or section
270C.4451
.

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EFFECTIVE DATE.

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This section is effective for taxable years beginning after December

31, 2027.

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Sec. 4.

Minnesota Statutes 2024, section 270C.445, subdivision 6c, is amended to read:

Subd. 6c.

Exchange of data; commissioner.

The commissioner shall refer information

and complaints about tax preparers who are alleged to have violated the provisions of this

section, except subdivision 5a
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or 5c
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, or section
270C.4451
, to:

(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction; and

(2) the Lawyers Professional Responsibility Board, if the tax preparer is under its

jurisdiction.

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EFFECTIVE DATE.

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This section is effective for taxable years beginning after December

31, 2027.

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Sec. 5.

Minnesota Statutes 2024, section 270C.445, subdivision 8, is amended to read:

Subd. 8.

Limited exemptions.

(a) Except as provided in paragraph (b), the provisions

of subdivisions 3; 5; 5a;
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5c;
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6, paragraphs (a) to (n); and 7, do not apply to:

(1) an attorney admitted to practice under section
481.01
;

(2) a registered accounting practitioner, a registered accounting practitioner firm, a

certified public accountant, or a certified public accountant firm, licensed in accordance

with chapter 326A;

(3) an enrolled agent who has passed the special enrollment examination administered

by the Internal Revenue Service;

(4) a person who provides, or assists in providing, tax preparation services within the

scope of duties as an employee under the direction or supervision of a person who is exempt

under this subdivision; or

(5) a person acting as a supervisor to a tax preparer who is exempt under this subdivision.

(b) The provisions of subdivisions 3; 6, paragraphs (a) to (n); and 7, apply to a tax

preparer who would otherwise be exempt under paragraph (a) if the tax preparer has:

(1) had a professional license suspended or revoked for cause, not including a failure to

pay a professional licensing fee, by any authority of any state, territory, or possession of

the United States, including a commonwealth, or the District of Columbia, any federal court

of record, or any federal agency, body, or board;

(2) irrespective of whether an appeal has been taken, been convicted of any crime

involving dishonesty or breach of trust;

(3) been censured, suspended, or disbarred under United States Treasury Department

Circular 230;

(4) been sanctioned by a court of competent jurisdiction, whether in a civil or criminal

proceeding, including suits for injunctive relief, relating to any taxpayer's tax liability or

the tax preparer's own tax liability, for:

(i) instituting or maintaining proceedings primarily for delay;

(ii) advancing frivolous or groundless arguments; or

(iii) failing to pursue available administrative remedies; or

(5) demonstrated a pattern of willful disreputable conduct by:

(i) failing to file a return that the tax preparer was required to file annually for two of

the three immediately preceding tax periods; or

(ii) failing to file a return that the tax preparer was required to file more frequently than

annually for three of the six immediately preceding tax periods.

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EFFECTIVE DATE.

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This section is effective for taxable years beginning after December

31, 2027.

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Sec. 6.

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[290.435] MINNESOTA VICTIMS OF CRIME ACCOUNT CHECKOFF.

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(a) Every individual who files an income tax return or property tax refund claim form

may designate on their original return that $1 or more be added to the tax or deducted from

the refund that would otherwise be payable by or to that individual and paid into the

Minnesota victims of crime account.

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(b) The commissioner must, on the income tax return and the property tax refund claim

form, notify filers of their right to designate that a portion of their tax or refund be paid into

the Minnesota victims of crime account. The sum of the designated amounts to be paid must

be credited to the Minnesota victims of crime account for use under section 299A.708. All

interest earned on money accrued, gifts to the program, contributions to the program, and

reimbursements of expenditures in section 299A.708 must be credited to the account by the

commissioner of management and budget.

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(c) The state pledges and agrees with all contributors to use the money contributed solely

for the purposes specified in section 299A.708.

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EFFECTIVE DATE.

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This section is effective for taxable years beginning after December

31, 2027.

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Sec. 7.

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[290.436] CORPORATE MINNESOTA VICTIMS OF CRIME ACCOUNT

CHECKOFF.

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(a) A corporation that files an income tax return may designate on its original return that

$1 or more be added to the tax or deducted from the refund that would otherwise be payable

by or to that corporation and paid into the Minnesota victims of crime account established

under section 299A.708 for use by the Department of Public Safety's Office of Justice

Programs. The commissioner must, on the corporate tax return, notify filers of their right

to designate that a portion of their tax return be paid into the Minnesota victims of crime

account for use as specified in section 299A.708. All interest earned on money accrued,

gifts to the program, contributions to the program, and reimbursements of expenditures in

section 299A.708 must be credited to the account by the commissioner of management and

budget.

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(b) The state pledges and agrees with all corporate contributors to use the funds

contributed solely for the purposes specified in section 299A.708.

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EFFECTIVE DATE.

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This section is effective for taxable years beginning after December

31, 2027.

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