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HF 5002

Tax preparation services; tax preparers prohibited from marking a tax return to designate a contribution to the state elections campaign account without explicit instruction from the taxpayer.

2025-2026 Regular Session

Tax preparers may not designate a taxpayer’s refund or payment as a contribution to the state elections campaign account without explicit taxpayer instruction.

Introduction and first reading, referred to Taxes
#business #elections #taxation
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Bill Summary · HF 5002

Summary of HF 5002 (2025-2026) – Minnesota

Purpose and Intent

HF 5002 aims to prohibit tax preparers in Minnesota from marking a taxpayer’s return to designate a contribution to the state elections campaign account unless the taxpayer provides explicit instruction. The bill explicitly adds a prohibitive provision to Minnesota Statutes 2025 Supplement, section 270C.445, subdivision 3, governing standards of conduct for tax preparers.

Key Provisions and Changes

  • Main prohibition: Tax preparers may not designate a taxpayer’s refund or payment as a contribution to the state elections campaign account without explicit taxpayer instruction. This is added as subdivision 3(26) to the existing standards of conduct.
  • Standards of conduct now include:
    • A comprehensive list of prohibitions and duties for tax preparers, including timely completion of returns, safeguarding client information, maintaining client confidentiality, providing copies of signed documents, retaining client returns for at least four years, avoiding false statements, and other fiduciary duties.
    • Prohibitions on practices such as charging based on a percentage of the refund, withholding client documents, or taking control of a client’s refund or department payment.
    • Prohibitions on entering into loan arrangements with clients to complete returns, and on certain disreputable or incompetent conduct as defined by Minnesota Rules.
    • Prohibitions on including certain restrictive or misleading clauses in documents related to tax preparation (e.g., hold harmless clauses, waivers of jury trial, or waivers of rights).
    • Specific prohibition against marking a tax return to designate a contribution to the state elections campaign account unless the taxpayer explicitly instructs so.

Who Is Affected

  • Tax preparers and professional tax preparation businesses operating in Minnesota.
  • Taxpayers/clients who use tax preparation services, ensuring that consent is explicitly obtained before any designation of contributions to the state elections campaign account.

Procedural and Timeline Aspects

  • Effective Date and Implementation: The bill amends Section 270C.445, subdivision 3, of the Minnesota Statutes 2025 Supplement. The language reflects the committee’s passage and introduction in the 94th Legislature, with first reading on 04/16/2026 and referral to the Committee on Taxes.
  • The bill is primarily targeted as a standards-of-conduct update rather than a tax-rate or broadly fiscal provision, with enforcement tied to professional conduct standards for tax preparers.

Notable Details

  • The prohibition aligns with consumer protection aims, ensuring client control over political contributions designated on tax documents.
  • The bill preserves and expands protections against improper tax preparer behavior, including data privacy, transparency, and avoidance of problematic financial arrangements.

If you’d like, I can provide a side-by-side comparison with current law to highlight all changes in greater detail, or draft a one-page briefing for stakeholders.

Compiled from official sources — confirm details with the bill’s official record.

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