The Tax Cuts and Jobs Act passed in December 2017 made sweeping changes with the potential to affect the majority of taxpayers during the 2018 filing season (and beyond). As you may have heard, Minnesota (along with other states) has yet to adopt the changes made at the federal level. With federal income being the typical starting point for completing state returns, taxpayers filing in the states that have not adopted the changes will effectively need to follow two very different sets of rules for their 2018 filings.
In an effort to stress the importance of conforming, Lurie partner Dave Brauer had the opportunity to testify at the Minnesota House of Representatives Tax Committee Meeting on January 23, 2019. He stated his concerns with additional compliance costs and the extra work required because of non-conformity and complexity, the potential for filing an increased number of amended returns, what the profession has done to prepare for the filing season, as well as the administrative process and effects on the Department of Revenue.
Lurie is proud to be involved in discussions at the state level and to serve as a taxpayer advocate for these important issues. Stay tuned to Lurie and the Minnesota Legislature for more updates on the topic of conformity. Although the 2018 filing season will present challenges, it is important to remember the opportunities that may be available. Check out this Lurie article highlighting tax opportunities to consider during the 2018 filing season.