U.S. Rep. Angie Craig Slams IRS Decision to Tax Minnesota Rebate Checks
WASHINGTON, DC – Today, U.S. Representative Angie Craig slammed the IRS’ decision to tax the rebate checks sent to Minnesotans earlier this year and demanded an explanation from the IRS Commissioner.
The IRS’ decision is a departure from previous guidance when they chose not to tax the stimulus checks issued by 21 states in 2022.
“I’m concerned that Minnesotans are being treated differently than residents from other states and further concerned regarding this inconsistency of IRS guidance,” wrote Rep. Angie Craig in a letter to the IRS Commissioner. “My office routinely handles IRS casework for constituents, and it would be unfortunate if this decision created additional unnecessary hardship and confusion for Minnesotans.”
Minnesota already pays nearly $7 more in federal taxes for every $1 it receives back.
Rep. Craig’s letter to IRS Commissioner Danny Werfel is linked here and copied below.
December 6th, 2023
The Honorable Danny Werfel
Commissioner
Internal Revenue Service
1111 Constitution Ave. NW
Washington, D.C. 20224
Dear Commissioner Werfel:
I write to you to express strong concern with the IRS’ decision to tax Minnesotans’ stimulus checks, which stands in direct conflict with the tax status of stimulus checks issued by 21 states in 2022.
This decision could lead to my constituents losing up to $286 of these important one-time payments that they had been expecting to see during a time of economic uncertainty. This year, the Minnesota State Legislature enacted these one-time stimulus checks of $260-$1,3000 and thoughtfully designed the program using 2021 income tax returns to be compliant with previous IRS guidance and to ensure it was tied to pandemic-era income.
I’m concerned that Minnesotans are being treated differently than residents from other states and further concerned regarding this inconsistency of IRS guidance. Minnesota already pays nearly $7 more in federal taxes for every $1 it receives back. Furthermore, Minnesota will not be taxing these stimulus checks, but because the IRS decided to tax them, this is certain to lead to confused taxpayers and possibly incorrect IRS returns filed. My office routinely handles IRS casework for constituents, and it would be unfortunate if this decision created additional unnecessary hardship and confusion for Minnesotans.
I urge you to reconsider this decision for the good of my constituents and all Minnesotans.
Thank you for your prompt attention to this important matter, I look forward to receiving your response.
Sincerely,
Angie Craig
Member of Congress
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