Absent fraud or failure to file a return, a three and one-half year statute of limitations on assessment of additional tax is established. Current law contains no limitation. This provision is effective April 15, 2000. The period of limitation for returns filed prior to April 15 is the longer of three and one-half years from the filing of the return or April 15, 2001. Allows the commissioner to extend the period for assessment of additional tax.
Current law allows extensions to be further extended for an additional six month period.
New law will permit unlimited additional extensions to file a claim for refund or assess additional tax. Minn. Stat. 297I.80. Minn. Stat. 297I.85. These are the identical penalties that apply to sales and withholding taxes and many other taxes administered by the commissioner. Criminal penalties for knowingly failing to file or pay, willfully failing to file or pay, or filing, or assisting in the filing of a false or fraudulent return are made applicable to all taxes and surcharges covered under Chapter 297I. Additionally, under current law, there is a criminal penalty in Minn. Stat.