In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. The Department has released guidance to explain the following tax change:
- Built-In Gains Tax on S Corporation - The Department of Revenue has received several questions regarding the applicability of the federal S corporation built-in gains tax for Iowa tax purposes. This guidance is not a detailed analysis of the calculation of this federal tax, but is instead intended to generally describe Iowa’s conformity with the federal built-in gains tax on S corporations, with a particular focus on Iowa’s conformity since the change to the recognition period enacted in federal Public Law 114-113, Division Q, section 127, Commonly referred to as the Protecting Americans from Tax Hikes Act.
This information was sent via GovDelivery to those subscribed to receive Law & Policy updates from the Department. Guidance is updated as it becomes available to the tax reform page to provide taxpayers with information on tax reform topics. To receive notifications of resources and guidance issued by the Department, subscribe to updates by selecting the tax topics of interest.