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State Representative Joe Atkins
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4192
For more information contact: Ted Modrich 651-296-5809
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ATKINS GOES TO BAT FOR FORMER NWA EMPLOYEES
(ST. PAUL) — As part of re-authorization the Federal Aviation Administration (FAA) signed into law in February by President Obama, Northwest Airlines employees who were provided a payment during bankruptcy proceedings are allowed to roll up to 90 percent of those proceeds into an Individual Retirement Account (IRA). This softens the tax blow to former NWA employees.
While the new federal law allows former NWA employees to amend their federal tax return to make the IRA contribution, Minnesota law does not allow an amendment to go back that far. If not fixed, this problem could cost former NWA tens of thousands of dollars each.
State Representative Joe Atkins (DFL – Inver Grove Heights) introduced a bill to remedy this problem and allow amended Minnesota returns. He sought out and has been joined by House Tax Chair Greg Davids (R – Preston) as a co-author and by Sen. Ted Daley (R- Eagan) as his chief author in the Senate, demonstrating the significant bipartisan support for the proposal.
Atkins’s legislation provides for an extension of the statute of limitations for an amended Minnesota tax return. If an individual places their funds — which were taxed as ordinary income — into an IRA by August 13, 2012, they would now have until April 15, 2013 to amend their return. Current Minnesota law prohibits amending a 2007 return to take advantage of this provision at the state level.
“Minnesota has a lot of former Northwest Airlines employees who had to endure the company’s difficult bankruptcy, and this bill allows them to take advantage of long overdue federal legislation," said Rep. Atkins. “If nothing is done, it could cost each NWA employee thousands of dollars.”
The bill is expected to be heard this week.
News Items
- Rep. Atkins, Sen. Lourey Introduce Health Insurance Exchange Legislation - (Posted: Jan 9 2013 3:44PM)
- Rep. Atkins – Statement on Deal to End NHL Lockout - (Posted: Jan 7 2013 2:05PM)
- Rep. Atkins to Hold Minnesota House Hearing on Economic Impact of Hockey Lockout - (Posted: Jan 2 2013 3:20PM)
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