Minnesota Wholesale Drug Distributor Tax Return
Extracted from PDF file 2018-minnesota-worksheet-c-dist.pdf, last modified January 2019
Wholesale Drug Distributor Tax ReturnMinnesotaCare Tax 2018 Wholesale Drug Distributor Tax Information and instructions for filing your MinnesotaCare tax return (Minnesota Statutes Chapter 295) For wholesale drug distributors and nonresident pharmacies Information and Assistance Website/e-Services www.revenue.state.mn.us Email [email protected] Phone 651-282-5533 (Weekdays, 8 a.m. - 4:30 p.m.) Fax 651-556-5233 Business Registration Email: [email protected] Phone: 651-282-5225 or 1-800-657-3605 Contents What’s New . . . . . . . . . . . . . . . . . . . . 1 Registering for a Minnesota Tax ID . . . 1 General Information . . . . . . . . . . . . . 2-3 Who Must File Definition of Legend Drugs Tax Passthrough Electronic Filing and Payments Filing Due Date Estimated Tax Requirements Reporting Business Changes Recordkeeping Statute of Limitations Electronic Payment Options How to File Your Annual Return . . . 3-4 How to Amend Your Return . . . . . . . . . 4 Managing Your Account Profile in e-Services . . . . . . . . . . . . . . . . . . . . . 5 This information is available in alternate formats. Your 2018 Annual Return is Due March 15, 2019 File your return electronically starting January 22, 2019. Go to our website and log in to e-Services to file or pay. What’s New Coming Soon: A Better Revenue Website We are redesigning the Minnesota Department of Revenue website to make it easier for you to find and use the information you rely on to meet your state tax obligations. Watch for a beta (preview) version of our new website in early 2019! Visit www.revenue.state.mn.us for more information and to get the latest tax news and updates. Sign Up to Receive Email Updates Stay informed about MinnesotaCare taxes! Sign up to receive email updates about: • filing and payment due date reminders • new or updated publications • educational tax seminars To sign up, go to our website at www.revenue.state.mn.us and subscribe for email updates. Enter your email address and select MinnesotaCare Tax Updates from the list. Voluntary Disclosure Program Have you been in business but were unaware of your MinnesotaCare tax obligations? Did you recently learn you were subject to tax? If so, you may qualify for our Voluntary Disclosure Program. Benefits of the program include: • immediate compliance with MinnesotaCare taxes • look-back period of generally three years • possible waiver of penalties For information on how to apply, see the department’s new Voluntary Disclosure Program web page and online application. Go to our website at www.revenue.state. mn.us and type Voluntary Disclosure into the Search box. Registering for a Minnesota Tax ID Before you can file a MinnesotaCare tax return and/or make estimated tax payments, you must have a Minnesota Tax ID Number. This is a seven-digit number assigned to you when you register with the department. If your business currently has a Minnesota Tax ID Number for other Minnesota taxes, you can add a MinnesotaCare tax account to your number. To update your business information, go to our website and log in to e-Services or contact Business Registration. If you do not have a Minnesota Tax ID Number, you must apply for one. You can apply online at www.revenue.state.mn.us or by contacting Business Registration (see Information and Assistance on this page). 1 General Information Who Must File Wholesale drug distributors and nonresident pharmacies that sell or distribute legend drugs in Minnesota are required to file a MinnesotaCare tax return. The following situations are common examples of when you would be subject to the tax: • You are a business that sells legend drugs at wholesale in Minnesota (including, but not limited to, manufacturers, distributors, and repackagers) • You are a business that sells or distributes legend drugs to a related corporate entity in Minnesota • You are a pharmacy located outside Minnesota that sells legend drugs at retail to consumers in Minnesota (including by mail order) Definition of Legend Drugs Legend drugs are drugs or gases that are classified by the FDA as a drug, not a device, and are required by federal law to be sold or dispensed in a container labeled with one of the following statements: • “Caution: Federal law prohibits dispensing without prescription” • “Rx only” Blood, blood components, and blood derivatives. Blood and blood components are not considered legend drugs under Minnesota law and are not subject to Wholesale Drug Distributor Tax. Blood derivatives, however, which are derived from blood, plasma, or serum through a chemical manufacturing process, are considered legend drugs and are taxable. Tax Passthrough A pharmacy may transfer the additional expense generated by the Wholesale Drug Distributor Tax to a pharmacy benefits manager. The law requires the pharmacy benefits manager to pay the transferred expense (M.S. 295.582, subd. 1). Electronic Filing and Payments Annual Returns You must file your annual return electronically using our e‑Services system (see page 3). Payments You are required to pay electronically if your tax liability was more than $10,000 for any one Minnesota business tax during the previous fiscal year (July 1–June 30). If you are required to pay any Minnesota business tax electronically for one year, you must pay all Minnesota business taxes electronically for all future years. We will send you a notice the first year you are required to pay electronically. A 5 percent penalty will be assessed on any non-electronic payments if you fail to pay electronically when required. Filing Due Date Annual Tax Return The regular due date to file your annual MinnesotaCare tax return and pay any additional tax due for the previous calendar year is March 15. The return must be filed even if there is no additional tax due. If March 15 falls on a weekend or holiday, returns filed on the next business day are considered timely. Extension of Time to File If you cannot file your return by the regular due date, you may request a 60-day filing extension. To request an extension for your 2018 return, call 651-282-5533 no later than March 15, 2019. A filing extension does not extend the time you have to pay your tax. You must pay any tax you owe by the regular due date or you will be assessed penalties and interest. For 2018 returns, the regular due date is March 15, 2019. To pay electronically, go to our website and log in to e-Services. Estimated Tax Requirements You’re required to make estimated tax payments during the year if your total annual MinnesotaCare tax will be more than $500. If your total annual tax will be $500 or less, you may pay your tax when you file your annual tax return and are not required to make estimated payments during the year. Due Dates. Estimated tax payments are due quarterly by the 15th day of April, July, and October of the current year and January 15 of the following year. If the due date falls on a weekend or holiday, payments electronically made or postmarked the next business day are considered timely. Each estimated tax payment must be at least the lesser of one of the following: • 90 percent of one-fourth of your actual tax for the current year • one-fourth of your actual tax for the previous year if you were in business for the entire year and you had a tax liability To determine your estimated tax payments, see the MinnesotaCare Estimated Tax Instructions for Wholesale Drug Distributor Tax available on our website. Additional Charge for Underpayment of Estimated Tax. If any payment is less than the required amount or is paid late, an additional tax charge (ATC) for underpaying the estimated tax will be assessed. When you file your annual tax return, our e‑Services system will calculate the ATC, if any, for you. Reporting Business Changes Be sure to update your business information if you do any of the following: • change the name, address, owner/officers, or ownership of your business • make any other changes (such as email address, phone number, or contact person) • need to add or delete a tax type • close your business • are no longer required to file and pay MinnesotaCare tax To update, go to our website and log in to e-Services. For additional information, see Managing Your Account Profile in e‑Services on page 5. Recordkeeping You should keep all internal accounting records and external third-party documentation that support the amounts reported on your MinnesotaCare tax return. This includes any paper records and any records you receive or store electronically. Some examples of paper and electronic records include: • legend drug sales invoices • audited and compiled financial statements • all other summary and detail reports, schedules, ledgers, and journals All documentation should be made available on request for the department to review. If you are audited, you will be asked to provide between 4 and 6 years of records. Exemptions may be denied if your documentation is incomplete. Continued 2 General Information (continued) Statute of Limitations The department may audit your return within 3½ years from the due date of the return or the date you filed the return, whichever is later. If there is an error in the amount of tax you reported, and the difference between the original amount and the correct amount is 25 percent or more, we have 6½ years to audit the return. There is no time limit if we find you have filed a false or fraudulent return, or if you have not filed a return. Electronic Payment Options e-Services You can make payments online using our e-Services system. If you pay through eServices, you will be able to view a record of your payments online once they are processed. Go to our website at www.revenue.state. mn.us and log in to e-Services. You will need your bank’s routing number and your account number. To be timely, you must submit your payment and receive a confirmation number on or before the payment due date. When paying electronically, you may not use an account associated with a foreign bank. ACH Credit Credit or Debit Card You can authorize a direct transfer from your bank account to the Minnesota Department of Revenue. For information on how to make a bank wire transfer, call us at 651-556-3003 or 1-800-657-3909. For a fee, you may charge your payments to your Visa, MasterCard, American Express, or Discover credit or debit card. To do so, have your card ready and go to www.paystatetax.com/mn or call 1-855-947-2966. ACH credit payments are initiated by you through your bank. You authorize your bank to transfer funds to the state’s bank account. The bank must use ACH file formats, which are available on our website. Your bank may charge you a fee for these payments. Bank Wire How to File Your Annual Return Your 2018 MinnesotaCare tax return is due March 15, 2019. File your return using our e-Services system starting January 22, 2019. Information You Will Need to File Your Return To File Online Include in gross receipts any amounts received as charges associated with the sale or use of the legend drugs, including: You will need Internet access with a browser that supports 128-bit encryption, such as Internet Explorer 8.0 to 11.0, Firefox 3.0 or higher, Google Chrome, or Safari 5.X. • MinnesotaCare tax expense charges • rental charges • shipping/handling charges • up charges Do not include in gross receipts: • amounts received from the sale or distribution of legend drugs in Minnesota to a wholesale drug distributor who sells legend drugs exclusively at wholesale • refunds paid to buyers in Minnesota for legend drugs returned during the year For the definition of legend drugs, see page 2. Go to our website at www.revenue.state. mn.us and log in to e-Services. You must file your MinnesotaCare tax return electronically using our online e-Services system. Before you can file your return, you will need the following: Line-By-Line Instructions • your username and password • dates and amounts of any MinnesotaCare estimated tax payments you made for the year Gross Receipts from the Sale of Legend Drugs • the amounts you are reporting on your return (see the Line-By-Line Instructions on this page for help calculating these amounts) • if you are making a payment with your return, your bank’s nine-digit routing number and bank account number You must be registered for MinnesotaCare Wholesale Drug Distributor Tax to file a return. To register or update your business information, log in to e-Services or contact Business Registration (see page 1). Use this information when you electronically file your return. Enter the total amount you received during the year from the wholesale sale of legend drugs in Minnesota. Some common examples of wholesale sales include sales to: • health care providers, hospitals, surgical centers, and pharmacies in Minnesota who use the drugs in treating patients • buyers in Minnesota who sell the drugs at retail • buyers in Minnesota who sell some of the drugs at wholesale and some of the drugs at retail Sales or Distribution to Related Entities. If you sell or distribute legend drugs to a related corporate entity in Minnesota (such as to pharmacies you own in Minnesota), enter the total price you paid for the legend drugs. Continued 3 How to File Your Annual Return (continued) Out-of-State Pharmacies Selling in Minnesota If you’re a pharmacy located outside Minnesota that sells legend drugs at retail to consumers in Minnesota (including by mail order), enter the total price you paid for the legend drugs. Exemption for Sales to Veterinarians Of your gross receipts, enter the amount received from the wholesale sale of legend drugs to veterinarians. Tax Our e-Services system will calculate your tax. The tax rate is 2 percent (0.02). Estimated Payments Any estimated payments you made for the year will be applied to your return. You will be asked to review the payments in e-Services when filing your return. If there are discrepancies between the payments in eServices and your records, please contact us. Penalties and Interest Late Payment. A late payment penalty is assessed on any tax not paid by March 15. The penalty is 5 percent of the unpaid tax for every 30-day period (or part of a 30-day period) that your return payment is late, up to 15 percent. Late Filing. There is also a penalty for filing your return after the due date. The late filing penalty is 5 percent of any unpaid tax. Extended Delinquency. If the department sends a written demand to file a tax return and the return is not filed within 30 days, an extended delinquency penalty of 5 percent of the unpaid tax or $100, whichever is greater, will be assessed. This penalty is in addition to any late filing penalty that may be assessed and applies to all unfiled returns, even if you paid the correct amount of tax on time, or do not have a tax liability. Interest. You must pay interest on the unpaid tax and penalty from the regular due date until the total is paid. The interest rate is determined each year. The interest rate for 2018 is 4 percent. Paying the Balance Due If you owe additional tax, you can use e-Services to pay at the same time you file your return. You’ll need your bank’s routing number and your account number. If you pay through e-Services, you will be able to view a record of your payments online once they are processed. If you choose to pay electronically another way, see the additional payment options on page 3. Payment Method. If you are required to make your tax payments electronically and do not, a 5 percent penalty will be assessed on any non-electronic payments (such as paper checks or money orders). How to Amend Your Return To adjust your return, you must file an amended return electronically using our online e-Services system. To claim a refund, you must file your amended return within 3½ years of the regular due date for the year you are amending. Keep all supporting documentation for any amended return you file. All documentation should be made available on request for the department to review. All amended returns are subject to audit. Filing Instructions To amend a return, go to our website at www.revenue.state.mn.us and log in to e-Services. Choose your Wholesale Drug Distributor Tax account and select “View Return” next to the period you want to amend. Then, select “Change” on the return screen and enter the corrected amounts that should have been reported on your original return. You’ll also need to enter the reason you are amending your return. You will receive a confirmation number if your return is filed successfully. If you need help or have questions about amending a return, please contact us. 4 Managing Your Account Profile in e-Services “Manage my profile” in e-Services allows you to: • update your login information • store your email address, phone number, and banking information • create access to your and other people’s accounts • add additional users with varying security, as well as request and approve thirdparty access Set Up and Manage Users There are two types of users in e-Services: e‑Services Master and Account Manager. An e-Services Master can manage other users as well as view, file, and/or pay for specific account types. An Account Manager can view, file, and/or pay for specific account types depending on the access an e-Services Master has set up for the user. e-Services has the following access level options: • All Access—allows user total access to update the account, file, and pay • File—allows user to view all information and file returns • Pay—allows user to view all information and make payments • View—allows user to only view all information For instructions on how to create additional logons for users, see Help in e‑Services. (12/18) Third-Party Access Third-party access is for accountants and other non-employees who file returns and/ or make payments on behalf of another business. In order to receive third-party access, the non-employee must request access from the taxpayer. The taxpayer must then grant the access and manage the login of the non-employee before the request can become active. Both parties must be active in e-Services to request third-party access. For detailed instructions on how to request third-party access, go to our website. 5
MinnesotaCare Return Instructions (Wholesale Drug Distributor Tax)
More about the Minnesota Worksheet C-Dist Corporate Income Tax
We last updated the Wholesale Drug Distributor Tax Return in February 2019, and the latest form we have available is for tax year 2018. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Minnesota Department of Revenue. You can print other Minnesota tax forms here.
Related Minnesota Corporate Income Tax Forms:
|Form Code||Form Name|
|Worksheet C-Provider||Provider, Hospital and Surgical Center Tax Return|
|Worksheet C-Use||Legend Drug Use Tax Return|
Minnesota usually releases forms for the current tax year between January and April. We last updated Minnesota Worksheet C-Dist from the Department of Revenue in February 2019.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Minnesota Worksheet C-Dist
We have a total of five past-year versions of Worksheet C-Dist in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
MinnesotaCare Return Instructions (Wholesale Drug Distributor Tax)
MinnesotaCare Return Instructions (Wholesale Drug Distributor Tax)
MinnesotaCare Return Instructions (Wholesale Drug Distributor Tax)
Worksheet C WDD 2014.indd
While we do our best to keep our list of Minnesota Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.