US EditionMinnesota could owe IRS nearly $7M over tax benefit error
Minnesota discovered an error in insurance tax handling for former spouses of state employees and expects to pay about $6.8 million to the IRS, pending final calculation.
- Following a February 2025 review, Minnesota Management and Budget expects to pay about $6.8 million to the IRS after discovering a tax benefit error, per June 18, 2025, letter.
- Amid following old state rules, Minnesota Management and Budget determined it had been following past guidance from state insurance regulators requiring continuation of coverage if, at divorce, ex-spouses and children were covered.
- The letter stated all affected state employees would face an estimated extra tax of roughly $583 in 2025, according to MMB.
- The agency will draw from its general fund, other agencies' contributions, and the SEGIP administrative fund, while declining further comment as IRS negotiations continue.
- The final amount due expects to be about $6.8 million, with negotiations with the IRS ongoing, according to MMB.
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16 Articles
16 Articles
Duluth News Tribune+15 Reposted by 15 other sources
Minnesota could owe IRS nearly $7M over tax benefit error
A letter sent to state lawmakers in June from Minnesota Management and Budget shows that the state has improperly provided a benefit for ex-spouses of state employees since 2022.
·Cherokee County, United States
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Total News Sources16
Leaning Left0Leaning Right8Center5Last UpdatedBias Distribution62% Right
Bias Distribution
- 62% of the sources lean Right
62% Right
C 38%
R 62%
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