Minnesota tax code changes were signed into law on July 1, 2021. Among the changes were those relating to Unemployment Insurance (UI) compensation, Paycheck Protection Program (PPP) loan forgiveness, and other retroactive conformity provisions affecting tax years 2017 through 2020.

Revenue is committed to providing updates on progress being made on updating our forms, developing and testing our system, communicating to impacted taxpayers who need to amend their returns, and providing information on when refunds start going out to impacted taxpayers. Previous status updates were provided on August 13, August 30, October 5, and October 26.

As of November 15, 2021, MN Revenue has processed over 217,600 impacted returns. Of those returns, over 10,900 had PPP loan forgiveness adjustments. Here is the status of the progress as of November 15, 2021:

  • We began manually processing the over 540,000 returns with UI compensation and PPP loan forgiveness filed at the individual income tax level the week of September 13. Manual processing of returns is ongoing.
  • Systematic processing of returns began at the end of October with the goal of processing 50,000 returns each week thereafter.
  • All other 2020 conformity-related adjustments (e.g., IRA distributions to be repaid over extended time, certain retirement account withdrawals excluded from income, and other miscellaneous provisions) will be completed by the department unless the taxpayer received a letter asking them to complete an amended return.

We will continue to provide status updates as they are available.

Questions? Contact your tax expert at CDS.