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 and August 30.
Below is the status of progress as of October 5, 2021:
- Nearly all 2,100 returns impacted by PPP changes filed at the corporate entity level have been processed. These returns make up a small fraction of the total amount of impacted returns, do not require system development and testing, and are processed manually.
- 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 with the goal of processing 1,000 returns per week. As of October 5, we have processed over 11,900 impacted returns. Of those returns, over 2,000 had PPP loan forgiveness adjustments.
- The number of returns processed per week will increase as system testing advances and more returns are able to be processed through the system, with a goal of processing 50,000 returns per week by late October.