The Department of Revenue has submitted new proposed rules to the Iowa Legislature, available for public comment through August 18, 2020. See individual notices below for details.
- Tax Return Preparers
The Department proposes this rule making to implement new provisions that were added to Iowa Code chapter 421 by 2019 Iowa Acts, House File 590, and by 2020 Iowa Acts, House File 2641. Iowa Code section 421.62 defines “tax return preparer” and sets forth a penalty for tax return preparers who fail to include their preparer tax identification number on certain returns or claims for refund they prepare under Iowa Code chapter 422. Iowa Code section 421.63 grants the Department the authority to enjoin certain tax return preparers. Lastly, Iowa Code section 421.64 imposes continuing education requirements on tax return preparers.
- Homestead Tax Credit & Military Service Tax Exemption
The Department proposes this rule making to clean up various provisions in existing rules related to the homestead tax credit and the military service tax exemption. In particular, this rule making defines “under honorable conditions” for purposes of the disabled veteran tax credit, describes the application requirements for the disabled veteran tax credit, and describes the eligibility of a person who has received multiple discharges from service for the disabled veteran tax credit. This rule making also clarifies the language of existing subrules regarding the applicability of the homestead tax credit and the military service tax exemption to a shareholder of a family farm corporation, the applicability of the homestead tax credit to a person owning a homestead dwelling located upon land owned by another person or entity, and the Iowa residency requirement for a person claiming a military service tax exemption.
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