1. ICCR
Reciprocity Exemption for Individual Construction Contractors 2009
For individual construction contractors (payees) who are Wisconsin, North Dakota and Michigan
residents performing work for a construction contractor (payer) in Minnesota
Read instructions on back. Please print.
Individual construction contractor (payee): Complete this form and give it to the construction contractor (payer).
Last name of individual construction contractor (payee) First name and initial Social Security number
Permanent home address
City State (check one) Zip code
Wisconsin North Dakota Michigan
Payee information
Business address (if different than above)
City State Zip code
1 I have lived at the above residence since (month and year) .
2 Do you return to the above residence at least once a month? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . YES NO*
* If you are a resident of North Dakota or Michigan and answer NO, you do not qualify for the reciprocity exemption.
3 Were you ever a resident of Minnesota? . . . . . . . . . . . . . YES, from to . NO
(month/year) (month/year)
Name of current Minnesota construction contractor (payer) Minnesota tax ID number
information
Payer
Address of Minnesota construction contractor (payer) Phone
City State Zip code
Minnesota
I declare that the above information is correct and complete to the best of my knowledge and belief.
signature
I understand there is a $500 penalty for making false statements.
Payee
Signature of independent construction contractor (payee) Date Daytime phone
Construction contractor (payer):
Mail this form to Minnesota Revenue, Mail Station 6501, St. Paul, MN 55146-6501.
Keep a copy for your records.
Note: If this form is not filled out completely, you must withhold 2 percent income tax from payments made for
work performed in Minnesota.
(Rev. 1/09)

2. Instructions for Form ICCR
Individual construction Penalties
The law
If you knowingly make any statements on
contractors (payees) this form you know are incorrect, you may Beginning January 1, 2009, construction
be assessed a $500 penalty.
Qualifying information regarding contractors are required to deduct and
residency withhold 2 percent Minnesota income
Use of Information tax from payments made to individual
Minnesota has income tax reciprocity
All information on Form ICCR is private by construction contractors for work
agreements with Wisconsin, North Da-
state law. It may only be given to your state performed in Minnesota. Payments
kota and Michigan. If you are a resident of
of residence, the Internal Revenue Service are subject to 2 percent withholding if
one of these states, income from personal
and to other state tax agencies as provided the work was performed in Minnesota
services is exempt from Minnesota income
by law. The information may be compared and the total payments during the year
tax and payments for personal services
with other information you furnished to exceed $600. [M.S. 290.92, subd. 4a(3)]
you receive as an individual construction
the Department of Revenue. Your name,
contractor are not subject to the 2 percent
Definitions
address and Social Security number are
Minnesota withholding. (Note: If you are a
A construction contractor (payer) is
required for identification. Your address
resident of North Dakota or Michigan, you
any individual or business entity car-
is also required to verify your state of resi-
must return to your state of residence at
rying on a trade or business described
dence. The construction contractor’s name,
least once a month. Wisconsin residents are
in industry code numbers 23 through
Minnesota tax ID number, address and
not required to meet this requirement.)
238990 of the North American Industry
phone number are required in case we have
Classification System (NAICS). For a de-
to contact them regarding the tax withheld
Qualifying information regarding
scription of the NAICS industry codes,
from your pay. The only information not
personal service income and
go to www.census.gov/eos/www/naics/.
required is your phone number. However,
business income
we ask that you provide it so we can contact
Personal service income (payments for Examples of construction trades covered
you quickly if we have questions.
professional services personally provided by by this law include, but are not limited
you) qualifies for reciprocity. to, residential and commercial building
Construction contractors construction, residential remodeling,
Business income generated by your
(payers) framing and finish carpentry, masonry,
employees or resulting from the sale of
roofing and siding, electrical contract-
goods does not qualify for reciprocity if If you are making payment to an individual ing, plumbing and HVAC, drywall,
that income is more than incidental. The construction contractor (payee) who is a painting, and flooring.
services performed by employees or sales resident of a reciprocity state and they have
of goods are incidental if they are a minor An individual construction contractor
not given you a properly completed Form
contribution to the income of the business. (payee) is any individual carrying on a
ICCR, you must withhold 2 percent income
The salary you pay all employees, together trade or business as a sole proprietorship
tax from their pay for work performed in
with the gross profit from the sales of goods, described in industry code numbers 23
Minnesota.
is presumed incidental if it is less than the through 238990 of the NAICS. A single
In addition, individual construction con-
greater of either $20,000 or 10 percent of member Limited Liability Company
tractors (payees) are required to give you
the gross profit of the business. (LLC) is not a sole proprietorship for
a new Form ICCR each calendar year by purposes of this law.
If you qualify for reciprocity and February 28.
The term “carrying on a trade or
do not want Minnesota income Send the completed form within 30 days of business” generally includes any
tax withheld from your pay receipt to Minnesota Revenue, Mail Station
activity conducted for the produc-
To avoid having Minnesota income tax 6501, St. Paul, MN 55146-6501. You must
tion of income from selling goods or
withheld from your pay, you must complete keep a copy of all Forms ICCR for five
performing services. Carrying on a
Form ICCR and give it to the construction years from the date received. You may be
trade or business includes all business
contractor (payer) before they make pay- assessed a $50 penalty for each form you are
ment to you. You must provide a new form activities (primary, secondary, etc.).
required to send us but do not.
by February 28 of each calendar year you
work for the construction contractor and
Additional information
qualify for this reciprocity exemption. If you
do not complete this form and give it to the Additional forms and information, includ-
construction contractor, they are required ing fact sheets and frequently asked ques-
to withhold 2 percent of Minnesota income tions, are available on our website at www.
tax from payments made to you. taxes.state.mn.us.
Email: withholding.tax@state.mn.us
Fill out the form completely
If you do not complete every item on this Phone: 651-282 9999 or 1-800-657-3594.
form, the construction contractor (payer) is TTY: Call 711 for Minnesota Relay.
required to withhold 2 percent Minnesota
income tax from your pay.