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Minnesota Rebates IRS

The Internal Revenue Service is not budging on its demand that Minnesotans pay taxes on rebate checks they received last year.

The agency recently sent letters to state lawmakers saying the rebates don't qualify as relief under current tax rules.

Over two-million Minnesotans received checks after the legislature decided to return some of the state's budget surplus to taxpayers.

The size of the tax bite on the checks is expected to vary between 26 and 286 dollars.

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