View the Department’s Executive Order 10 - Rulemaking Information.
IDR Administrative Rules: Reorganization Update
The Iowa Department of Revenue previously submitted the following proposed rules to the Iowa Legislature. The following rules have recently been adopted and filed. Visit the Iowa Legislature Administrative Rules page to review a complete listing of department rules.
House File 368, enacted during 2021 Legislative Session, transferred the administration of the rent reimbursement program under Iowa Code chapter 425, subchapter II, from the Iowa Department of Revenue (IDR) to the Iowa Department of Human Services (DHS). This transition is scheduled to occur on January 1, 2023. This rulemaking addresses three transition issues that IDR and DHS have identified. First, it clarifies that appeals of denials or reductions of rent reimbursement claims shall be filed with and administered by the agency that made the denial or reduction.
This rulemaking is intended to implement the requirement imposed by 2022 Iowa Acts, House File 2552, division II, to electronically file certain business income, fiduciary, and franchise tax returns. This rulemaking describes the proper method for filing electronic returns, provides definitions that are useful for determining whether a taxpayer has met the criteria for being subject to the mandate, and provides for exceptions to the electronic filing requirement.
This 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.
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 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.
This 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 and various rules to reflect the enactment of Iowa Code section 421.9A.
Through 2022 Iowa Acts, House File 2552, the Legislature provided changes to Iowa Code section 421.59, reflected in this 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.
The purpose of this rulemaking is to clarify and update Chapters 5 and 6 based on current Departmental practice. View the rulemaking for full details regarding items being rescinded, amended, moved, or replaced, and the new rules being adopted.
This rulemaking implements 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.
This rulemaking implements 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.
This rulemaking addresses the application of the first of two assessment limitation tiers for commercial, industrial, and railway property assessed under Iowa Code chapter 434. 2022 Iowa Acts, House File 2552, division XI, repeals the Business Property Tax Credit under Iowa Code chapter 426C on July 1, 2024, and creates a two-tier assessment limitation for properties classified as commercial, industrial, and railway property assessed under Iowa Code chapter 434 for assessment years beginning on or after January 1, 2022.