Electronic Filing Requirement for Businesses, Trusts, and Estates

Certain taxpayers are now required to file their annual Iowa tax returns in an electronic format. This new electronic filing requirement is phased in over several years for the affected tax types. The chart below shows the tax years for which the requirement goes into effect and the required method for filing an electronic return by tax type.

On February 17, 2023 Iowa Department of Revenue Director Kraig Paulsen signed Order 2023-01 offering limited relief from the requirement that certain business entities file their Iowa income, franchise, and composite tax returns in an electronic format for certain returns filed in 2023. See Order 2023-01 Relief below for more information about how to qualify for this relief.

 

Tax/Form Type Required For Required Filing Method
Corporate Income (IA 1120) Tax years ending on or after
December 31, 2022		 Modernized eFile (MeF)
S Corp (IA 1120S) Tax years ending on or after
December 31, 2022		 Modernized eFile (MeF)
Partnership (IA 1065) Tax years ending on or after
December 31, 2022		 Modernized eFile (MeF)
Franchise (IA 1120F) Tax years ending on or after
December 31, 2022		 Modernized eFile (MeF)
Fiduciary (IA 1041) Tax years ending on or after
December 31, 2023		 Modernized eFile (MeF)
Moneys and Credits Tax years ending on or after
December 31, 2024		 Not yet implemented

  • The following are the thresholds for determining whether a taxpayer is subject to the electronic filing requirement. Impacted returns that are not properly eFiled will be invalid. Taxpayers who meet any of these thresholds and still file paper returns will be treated as nonfilers. Such taxpayers may incur late-file and other penalties, and the statute of limitations for the Department to review the return and assess tax will not begin to run until the taxpayer files the required electronic return(s).

    All income and franchise taxpayers (IA 1120, IA 1065, IA 1120S, IA 1120F, IA 1041)

    • Gross receipts $250,000+
    • Iowa tax credits reported on the return $25,000+

    Pass throughs (IA 1065, IA 1120S, IA 1041)

    • Required to issue 10+ Iowa K-1s 

    Consolidated Iowa return (IA 1120, status 3)

    • Always required

    Moneys and Credits

    • Always required

  • Requests for Exceptions

    Exceptions to the electronic filing requirement may be granted for good cause.

    • Good cause includes:
    • Religious objections
    • Act of God or casualty
    • MeF portal permanently closed for the tax year
    • Good cause does not include:
    • Inadequate tax preparation software (i.e. software that does not support all forms necessary to file a complete return)

    Taxpayers may request exceptions by submitting the Electronic Filing Requirement Exception Request (78-641) before the return is filed. Do not include the request with your return. Requests must be submitted by:

    Email: idrcorptax@iowa.gov
    Mail: Iowa Department of Revenue, PO Box 10465, Des Moines, IA 50306-0465
    Fax: 515-281-3756

    The Department will notify the taxpayer in writing of whether their request for exception has been approved or denied. Requests will be deemed accepted if the Department does not respond within 90 days of receipt of the taxpayer’s request for exception.

    Temporary Transition Relief

    If a return subject to the electronic filing requirement is improperly filed on paper, the Department will send the taxpayer a letter instructing them to file a proper electronic return within 30 days. If the taxpayer files a proper electronic return within that time, the Department will deem the original paper-filed return a valid return.
    This relief only applies to tax years ending on or before 12/31/23
    A taxpayer may only benefit from this relief for one return

    More detailed information may be found in Iowa Administrative Code rule 701—8.7 

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    Sales and Use Tax

    The information on this page does not impact sales and use tax filing or payment requirements. View Sales and Use Tax Permit, Return Filing, and Payment Changes for information about other recent changes to filing requirements.