TPD: Tax Position Disclosure (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Form TPD, Tax Position Disclosure, discloses tax items or positions that are not otherwise adequately disclosed on a Minnesota tax return. It identifies the items, their amounts and locations on the return, and the relevant facts affecting their tax treatment.
Who files this form
Form TPD is used by taxpayers and tax return preparers to disclose Minnesota tax items or positions that are not otherwise adequately disclosed on a Minnesota tax return.
The instructions identify taxpayers responsible for paying these taxes as eligible to use the form:
- Income tax
- Corporate franchise tax
- Estate tax
- Occupation tax
- Gross proceeds tax on mining
- Unrelated business income tax
- Sales tax on motor vehicles
Form TPD does not apply to the general sales and use tax imposed under Chapter 297A. Filing it may reduce the substantial understatement penalty if the tax position has a reasonable basis.
What you'll need
Have the following information ready to complete Form TPD:
- Taxpayer name, identifying number, address, email address, and phone number.
- The name and complete description of each item or group of items being disclosed.
- The form or schedule, line number, and amount for each item.
- The Minnesota law, statute, rule, Revenue Notice, or other Minnesota position you are taking a position contrary to, if applicable.
- Relevant facts explaining the tax treatment and the controversy or potential controversy.
- The pass-through entity's FEIN or Minnesota ID, if you are an owner disclosing an item from that entity.
You may use continuation sheets if you need more space. Put your name and identifying number on each sheet.
How to file
File Form TPD with the state tax return on which you first take the tax position. Keep a copy for your records. The supplied text does not specify a mailing address or e-file method.
- Enter the taxpayer's identifying and contact information.
- Complete Part I with the item descriptions, any Minnesota position you are taking a position contrary to, and the form or schedule, line number, and amount for each item.
- Complete Part II with the relevant facts, including the item's identity, amount, and the nature of the controversy or potential controversy.
- Complete the authorized signature, title, date, and direct phone fields.
For items reported by pass-through entities, complete and file a separate Form TPD for each entity. Include the entity's FEIN or Minnesota ID in Part II.
Common mistakes
- Leaving Parts I or II incomplete. The instructions remind you to supply all required information.
- Combining items from different pass-through entities on one form. File a separate Form TPD for each entity, and identify pass-through items as such.
- Leaving identifying information off continuation sheets. Put your name and identifying number on every sheet.
- Omitting pass-through entity details. Include the entity's FEIN or Minnesota ID in Part II. Contact the entity if you lack information needed for that part.
- Failing to disclose a recurring item each year. Items such as depreciation expense require Form TPD for each tax year in which they occur.
- Disclosing a carryover only in a later year. Carryover items must be disclosed for the tax year in which they originated.
Questions people ask
Does filing Form TPD automatically remove the understatement penalty?
No. Filing may reduce the penalty if the return position has a reasonable basis. The instructions generally allow avoidance of the penalty when the position is adequately disclosed and has a reasonable basis, but they also describe exceptions and special rules.
What does “reasonable basis” mean?
It is a relatively high tax-reporting standard. A position that is merely arguable does not satisfy it.
Do I need another Form TPD when I use a carryover in a later year?
No. Disclose the carryover item for the year it originated. You do not have to file another Form TPD for that item in the years when the carryover is taken into account. Recurring items, such as depreciation expense, must be disclosed each year they occur.
Can I describe similar items as a group?
Yes. If you claim the same tax treatment for similar items in the same tax year, describe the group rather than providing a separate description of each item.