SF3820

Purpose

To create a new voluntary tax donation option that funds crime victim services in Minnesota. The bill adds a new provision that allows taxpayers to contribute to the Minnesota victims of crime account when filing their income tax return, and it sets up how tax preparers must inform clients about this option.

Main Provisions

• Creates a Minnesota victims of crime account checkoff (Subd.5c) within Minnesota Statutes 270C.445.
• Requires tax preparers to give written notice about the option to contribute to the Minnesota victims of crime account to:
  • corporate clients that file an income tax return, and
  • individual clients who file an income tax return or a claim under chapter 290A.
• The notice must be provided at the same time as the preliminary worksheets or other documents used to prepare the client’s return.
• The notice must include a line showing contributions (a place for displaying the amount donated).
• The new checkoff relies on existing processes described in sections 290.435 and 290.436 for tax donation checkoffs.

How It Works (Summary of Mechanism)

• Taxpayers who file an income tax return (or a claim under chapter 290A) may choose to donate to the Minnesota victims of crime account.
• Tax preparers must notify eligible clients about this option and present a line where the donation amount can be displayed on the return.
• Donations go to the Minnesota victims of crime account to support crime victim services.

Significant Changes to Law

• Adds Subd.5c to Minnesota Statutes 270C.445 to establish a new Minnesota victims of crime account checkoff.
• Establishes a mandatory notification requirement for tax preparers to inform both corporate and individual filers about the donation option.
• Requires a display line for showing the contribution on the tax return.

Potential Impact

• Creates a new, voluntary funding stream for crime victim services.
• Increases awareness of and participation in supporting crime victims.
• Involves tax preparers more directly in communicating charitable options to clients.

Note

The bill references existing checkoff infrastructure in sections 290.435 and 290.436 and integrates the new Minnesota victims of crime account checkoff with those mechanisms.

Relevant Terms - Minnesota victims of crime account - tax donation checkoff - tax preparer - written notice - corporate clients - individual clients - income tax return - claim under chapter 290A - preliminary worksheets - line for displaying contributions - Minnesota Statutes 270C.445 - sections 290.435 and 290.436