Minnesota: Sales Tax Handbook
How to appeal a sales tax audit or penalty in Minnesota
In Minnesota, the Department of Revenue will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the Minnesota Department of Revenue, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Department of Revenue, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in Minnesota
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Minnesota sales tax return in the event of underpayment, incorrect reportings, etc. The Department of Revenue cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in Minnesota is three and a half years from the later of the return due date or the return filing date. It must be noted that if the understated taxes are greater than 25%, three and a half years becomes six and a half years from either the later of the return filing date or return due date.
Appealing to the Department of Revenue in Minnesota
If you do not agree with a penalty or decision made by the Minnesota Department of Revenue, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Commissioner of Revenue within sixty days of notice of action
TopAdministrative Sales Tax Appeals in Minnesota
In the case of administrative appeal, a petition must be filed with the Tax Court within sixty days after the decision has been made
TopJudicial Sales Tax Appeals in Minnesota
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the State Supreme Court within sixty days after the Tax Court order was entered
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