Administrative Orders

The Department is charged by statute with many administrative duties, some of which it accomplishes by taking administrative actions or issuing administrative orders. Depending on what the statute requires, the administrative actions or orders can be either requested of or initiated by the Director. This page also includes judicial reviews of Director's Orders from the current year.

The following orders are from the past year. All orders from previous years can be found in the Iowa Tax Research Library

Administrative Orders

Taxpayer petitioned the Director to extend the time period to amend its fourth quarter sales tax return. Upon review, the Director denied the taxpayer's request as the petition did not conform to Iowa Administrative Code rule 701—7.28(8)"b"(2)"2" by providing a citation to the relevant rule to be waived. Further, Iowa Code section 423.47 requires refund claims to be filed within three years after the tax payment. The Director does not have the authority to waive this statutory requirement. As a result, the Director denied the taxpayer's petition for waiver.

Date: 2022-05-24

Petitioner, a law firm, requests and pays for medical records from medical providers for use in its clients’ cases which could be supplied through a third-party copy service. Petitioner requested a declaratory order seeking an exemption from sales tax on the fees charged for the release of these records from the third-party copy service under Iowa Code sections 423.3(96) and 622.10(6). The Director refused to issue the declaratory order because the petition lacked sufficient factual circumstances in order for the Director to adequately respond and the questions presented in the petition would be more properly resolved in a different type of proceeding.

Date: 2022-05-19

Iowa Code section 423.4(11), implemented by Iowa Administrative Code rule 701—235.3, allows a qualifying automobile racetrack facility to apply and obtain a rebate of the sales tax imposed and collected by retailers permitted to make sales within the facility for the facility's use in reinvestment and improvement projects. To obtain the rebate, a facility must timely file the requisite information and documentation with the department. The Petitioner, a qualified racetrack facility, requested a waiver of Iowa Administrative Code rules 701—235.3(4) and 235.3(5) in order to obtain the rebate from untimely filed and incomplete forms. The Director determined that rules 235.3(4) and 235.3(5) are not discretionary and, therefore, are not within his delegated authority to waive. As a result, the Director denied the facility's petition for waiver.

Date: 2022-05-02

Taxpayer appealed the Department's assessment of individual income tax. Administrative Law Judge dismissed taxpayer's appeal in response to the Department's motion for the sanction of dismissal due to the taxpayer's failure to respond and comply with the Department's discovery requests despite the grant of multiple extensions. Taxpayer petitioned for Director review of the dismissal order, in which he broadly objected to the discovery requests, argued the Department's motion for the sanction of dismissal failed to comply with Iowa Rule of Civil Procedure 1.502, and argued the dismissal of his appeal was in error based upon several arguments relating to his inability to answer discovery requests. Upon review, the Director denied the taxpayer's objections to the discovery requests and arguments relating to the sufficiency of the Department's motion for the sanction of dismissal as neither were presented to or considered by the Administrative Law Judge. Further, the Director denied the taxpayer's arguments relating to the dismissal as the Administrative Law Judge's dismissal of the taxpayer's appeal only occurred after providing multiple extensions of time, notice that continued noncompliance could result in sanctions (including dismissal), a hearing to determine whether dismissal was appropriate. As a result, the Director affirmed the order dismissing the taxpayer's appeal.

Date: 2022-03-25

Taxpayers, members of the Iowa National Guard, submitted a Petition for Declaratory Order asking the Director to review the Department's interpretation of Iowa Code section 422.7(42A) through Iowa Administrative Code rule 701--40.76. Section 422.7(42A) permits a taxpayer to "subtract, to the extent included, all pay received by the taxpayer from the federal government for military service performed while on active duty status in the armed forces" when calculating the taxpayer's Iowa net income. The Department's administrative rule interprets the Code to be limited to "members of the National Guard who are in active duty status as defined in Title 10 of the United States Code." The rule explicitly states that full-time National Guard members serving under Title 32 orders, other National Guard members who are not in an active duty status under Title 10, and National Guard members not receiving pay from the federal government are not eligible for the exclusion provided in the Code. Upon review, the Director determined that the phrase "active duty status" as used in the Code was ambiguous. The Director then concluded that various rules of statutory construction, the statute's legislative history, and the longevity of the Department's rule supported the Department's rule. As a result, the Director held that the Department's rule was reasonable and was not in error.

Date: 2022-03-21

Taxpayer appealed the Department's assessment of individual income tax. Because Taxpayer did not file individual income tax returns for the years at issues, the Department issued assessments based on information obtained from the Internal Revenue Service. Before the Administrative Law Judge, Taxpayer failed to present any evidence that the Department's assessment was in error. Noting this lack of evidence that the assessment was improper or that the calculation of assessed tax, penalty, and interest was in error, the Administrative Law Judge affirmed the Department's assessment. Upon review, the Director adopted the Administrative Law Judge's Proposed Decision, upholding the Department's assessment of tax, penalty, and interest.

Date: 2022-03-21

Petitioner, a homeowners’ association, owns, operates, and maintains its own water system and provides water service to homeowners in its development. Petitioner inquired about the collection and remittance of water service excise tax (WET) on the water service, stating that it was not required to collect and remit because it did not meet the definition of a water utility providing water service for compensation. Director found that because the water service fee included within the homeowners’ annual dues is identifiable and itemized, the petitioner is furnishing water service for compensation, therefore it qualifies as a water utility under Iowa Code section 423.3(103)(b)(2) and requires it to collect and remit WET

Date: 2021-08-17