The Iowa Department of Revenue has submitted new proposed rules to the Iowa Legislature, available for public comment through August 30, 2022. See individual notices below for details.
- Appeals, Taxpayer Representation, and Other Administrative Procedures
Through 2022 Iowa Acts, House File 2552, the Legislature provided changes to Iowa Code section 421.59. These changes are reflected in this proposed rulemaking, including the removal of evidence requirements for officers and employees of corporations and associations, as well as the addition of authority categories for very small estates under Iowa Code section 633.356(2) and trusts. This proposed rulemaking provides guidelines to allow taxpayers to appoint an entity as an authorized representative and includes certain clarifications regarding the administrative process including signature requirements for spouses and an authorized representative’s duty to maintain an up-to-date address with the Department.
- Corporate Income Tax Rate Adjustments
This proposed rulemaking is intended to implement changes to the corporate income tax rates contained in 2022 Iowa Acts, House File 2317. In the event that net corporate income tax receipts for a fiscal year exceed $700 million, the statute requires the Department to calculate the corporate tax rates that would have generated $700 million in net corporate income tax receipts that fiscal year, and reduce the next year's rates accordingly. This describes the method the Department will use to determine the rates.
- Failure to File a Tax Return - Penalty
This proposed rulemaking is intended to implement the penalty imposed on taxpayers for failure to file a tax return within 90 days of written notice from the Department. The Department will send a written demand to a taxpayer instructing the taxpayer to file a tax return. If the taxpayer fails to file within 90 days of a demand letter, a $1,000 penalty will be added to the amount of tax shown due. This rulemaking describes the demand letter that will be sent to the taxpayer to start the 90-day time period. It also articulates what constitutes a showing of “good reason” for which this penalty may be waived by the Department. This penalty generally applies to all taxpayers for all tax types.
- Income Tax Returns — Whole Dollars
For tax years beginning on or after January 1, 2022, certain business income and franchise tax returns will no longer require taxpayers to use whole dollars. This proposed rulemaking removes the requirement that whole dollars be used on returns. Some taxpayers, including individuals and fiduciaries, may still be required to report whole dollars on the returns. Forms that require the use of whole dollars will state that requirement in the instructions.
- Personal Service & Paperless Delivery - Notices, Correspondence, Other Communication
This proposed rulemaking amends rules on personal service and paperless delivery of notices, correspondence, and other communication from the Department to taxpayers and their authorized representatives. These amendments are necessary to reflect changes made to the implementing statute as a result of 2022 Iowa Acts, House File 2552, section 18, and to describe the functionality of the Department’s e-services portal, GovConnectIowa, regarding paperless delivery, which will be available at the time this rulemaking becomes effective.
- Public Records, Fair Information Practices; General Administration; Tax Return Extension in Disaster Areas
The purpose of this proposed rulemaking is to clarify and update Chapters 5 and 6 based on current Departmental practice. View the proposed rulemaking for details regarding items being rescinded, amended, moved, or replaced, and the new rules being adopted.
- Tax-Related Due Dates - Saturdays, Sundays, or Holidays
This proposed rulemaking is intended to implement 2022 Iowa Acts, House File 2552, which amends due dates for the Iowa Department of Revenue that fall on Saturdays, Sundays, and holidays. It amends various rules to reflect the enactment of Iowa Code section 421.9A.
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