Committee hears bill to align state refund timelines with federal law to help taxpayers recover overpayments

Vice Chair Norris presented House File 3697 to clarify Minnesota's statute of limitations for refund claims so it mirrors federal timelines and reduces instances where taxpayers become barred from recovering overpayments.

Ben Wagner, who described himself as a tax controversy attorney with the SBA tax section, told the committee the current statute can create a "tax trap for the unwary" and recounted a client case in which a seriously impaired elderly taxpayer suffered large assessed liabilities and could not fully recover over-collected funds. Wagner said the bill would give taxpayers the ability to seek refunds within two years of payment, as in federal law, reducing unfair outcomes for vulnerable people.

Madeleine, legislative liaison for the Department of Revenue, told the committee the department had no formal position but appreciated collaboration on the draft language. Committee members asked clarifying questions; Representative Norris said the bill is intended to ensure taxpayers "pay exactly what they owe, no more and no less."

The author moved to lay the bill over for possible inclusion in the 2026 tax omnibus; the committee approved the layover.