Minn. Stat. 332 Update

by | May 22, 2022

During the week of May 16, 2022, the Minnesota House and Senate unanimously passed a bill to amend Minnesota Statue 332. The bill regulated what they deemed to be debt settlement services. These types of services included helping anyone in anyway who owed back taxes to Minnesota or Minnesotans who owed back taxes to the IRS. The only exemption to the regulations of this statute was for attorneys who did not settle taxes as their exclusive practice. The amendment now allows for licensed attorneys, CPAs, EAs, and their professional firms to be exempt from the regulations. The new changes go into effect August 1, 2022.

What does this law change mean for Minnesota residents? The first thing Minnesota residents will notice is an increase in advertising. There may be more advertising for Optima Tax Relief and other similar services on TV and radio. If a Minnesota resident is looking for a representative to help them with their tax situation there are many things to consider.

Local attorney with a local office

First, do you want someone with a local office. Many of these large organizations have drop centers where consultants (or sales reps) will meet with you. They do not have a physical office but a place where they send someone to talk to or pick up documents. These sales reps are not looking for the best interest but looking to make a sale.

Full scope of services

Second, does the firm offer a full scope of services? Firms that do not offer a full range of services will try to fit your situations into their services, instead of developing a plan to fit your situation. Every situation is unique and instead of having someone try to fit a round peg into a square hole, you want someone to develop a personalized strategy for you.

Knowing who you work with

Lastly, who are you working with? Some of these places have you working with assistants and have not communication chain with your actual representative. You should be able to have access to your attorney, CPA, or EA. They should be able to explain the process, understand your situation, and properly set expectations with you.

Final thoughts

With the amendment to Minnesota Statute 332, Minnesota representatives should be careful with the upcoming flood of advertisers in the state. Check reviews of the firm you are working with. Check with trusted professionals you know to see if they can provide you with a trusted tax representative. At Wildes at Law we will always be honest with you on your situation. We offer free consolations and will let you know your options whether it is us that will help you or not. Just be careful out there if you do not go with us, there are plenty of bad actors.

Need Tax Advice

Don’t hesitate to contact your Minnesota Tax Attorneys at Wildes at Law for any tax planning, business, tax preparation and other tax services.