reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.42 - Newspapers, Free Newspapers and Shoppers' Guides

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General observations.
The gross receipts from the sales of newspapers, free newspapers, and shoppers'
				guides are exempt from tax. The gross receipts from the sales of magazines,
				newsletters, and other periodicals which are not newspapers are taxable. Recent
				cases decided by the United States Supreme Court and the Supreme Court of Iowa
				prohibit exempting from taxation the sale of any periodical if that exemption
				from taxation is based solely upon the contents of that periodical.
				See
Arkansas Writers' Project, Inc. v.Ragland,
481 U.S. 221, 107
				S.Ct. 1722, 95 L.Ed.2d 209 (1987) and
Hearst V. Iowa Department of
				Revenue & Finance,
461 N.W.2d 295 (Iowa 1990).
(2)
General characteristics of a
				newspaper
"Newspaper" is a term with a common definition. A
				"newspaper" is a periodical, published at short, stated, and regular intervals,
				usually daily or weekly. It is printed on newsprint with news ink. The format
				of a newspaper is that of sheets folded loosely together without stapling. A
				newspaper is admitted to the U.S. mails as second-class material. Other
				frequent characteristics of newspapers are the following:
a. Newspapers usually contain photographs.
				The photographs are more often in black and white rather than color
b. Information printed on newspapers is
				usually contained in columns on the newspaper pages.
c. The larger the cross section of the
				population which reads a periodical in the area where the periodical
				circulates, the more likely it is that the department will consider that
				periodical to be a "newspaper."
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.44 - Sale or Rental of Farm Machinery and Equipment

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1987, the gross receipts from the sale
				  or rental of farm machinery and equipment will be exempt from tax. Effective
				  July 1, 1996, the gross receipts from the sale of property which is a
				  container, label, carton, pallet, packing case, wrapping, baling wire, twine,
				  bag, bottle, shipping case or other similar article or receptacle sold for use
				  in agricultural, livestock or dairy production are not subject to sales
				  tax.
(1)
Characteristics of
				and limitations upon farm machinery and equipment.
To be eligible for
				exemption from or refund of tax under this rule the machinery or equipment
				must:
a. Be directly and primarily used in
				production of agricultural products; and
b. Be one of the following:
(1) A self-propelled implement; or
(2) An implement customarily drawn or
				attached to a self-propelled implement; or
(3) A grain dryer; or
(4) An auxiliary attachment which improves
				the performance, safety, operation, or efficiency of a qualifying implement or
				grain dryer if sale or first use in Iowa is on or after July 1, 1995;
				or
(5) A replacement part for any
				item described in subparagraph (1), (2), (3), or (4).
(6) Effective July 1, 1996, the gross
				receipts from the sale of property which is a container, label, carton, pallet,
				packing case, wrapping, baling wire, twine, bag, bottle, shipping case, or
				other similar article or receptacle sold for use in agricultural, livestock or
				dairy production.
c. No
				vehicles subject to registration, as defined in Iowa Code subsection
				4231(7)., implement
				customarily drawn or attached to a vehicle, auxiliary attachment, or any
				replacement part for a vehicle, implement, or auxiliary attachment is eligible
				for the exemption or refund allowed under this rule.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.46 - Automotive Fluids

Current through Register Vol. 47, No. 3, July 24, 2024
The gross receipts from the sales of certain automotive
				  fluids are exempt from tax. To be considered exempt, the sale must possess the
				  following characteristics:
(1) the
				sale must be to a retailer who will install the automotive fluid in or apply
				the automotive fluid to a motor vehicle; and
(2) the installation or application must be
				done while the retailer is providing a taxable enumerated service (e.g.,
				automobile lubrication); or
(3)
				the automotive fluid must be installed in or applied to a motor vehicle which
				the retailer intends to sell and the sale of which will be subject to Iowa use
				tax.
Specific but nonexclusive examples of "automotive fluids" are
				  motor oil and other automobile lubricants, hydraulic, brake, and transmission
				  fluids, sealants, undercoatings, antifreeze, and gasoline additives.
This rule is intended to implement Iowa Code section
				  422.45(33).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.49 - Aircraft Sales, Rental, Component Parts, and Services Exemptions Prior To, On, and After July 1, 1999

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Prior to
				July 1, 1999, sales in Iowa of aircraft subject to registration were subject to
				sales tax. On and after July 1, 1999, sales of aircraft in Iowa are subject to
				Iowa use tax rather than Iowa sales tax. See rule
				701-316.
				(423). Also, on and after that date, the use tax imposed on sales of aircraft
				in Iowa is collected by the Iowa department of transportation at the time of
				the aircraft's registration. Sales of certain aircraft parts in Iowa, the
				performance of taxable services in Iowa on or in connection with the repair,
				remodeling, or maintenance of aircraft, and the rental of aircraft in Iowa
				remain subject to Iowa sales tax on and after July 1, 1999. See subrule
				18.49(3).
(2) For the purposes of
				this subrule only, an "aircraft" is any contrivance known or hereafter invented
				which is designed for navigation of or flight in the air and is used in a
				scheduled interstate Federal Aviation Administration certified air carrier
				operation.
a.
Exempt aircraft
				sales.
As of July 1,1988, and up to and including June 30,1999, gross
				receipts from the sale of aircraft are exempt from tax.
b.
Exempt rental of
				aircraft.
Effective May 1, 1995, and retroactive to July 1, 1988, the
				taxable rental (see
				701-2674.
				(422,423)) of aircraft, as defined in the introductory paragraph of this
				subrule, is exempt from tax.
c.
Exempt sale or rental of aircraft parts.
Effective May 1,1995,
				and retroactive to July 1, 1988, gross receipts from the sale or rental of
				tangible personal property permanently affixed to any aircraft as a component
				part of that aircraft are exempt from tax. The term "component parts" includes,
				but is not limited to, repair or replacement parts and materials.
d.
Exempt performance of
				services.
Effective May 1, 1995, and retroactive to July 1, 1988,
				gross receipts from the rendering, furnishing, or performing of services in
				connection with the repair, remodeling, or maintenance of aircraft (including
				aircraft engines and component materials or parts) are exempt from
				tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.50 - Property Used by a Lending Organization

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1988, the gross receipts from the sale
				  of tangible personal property to a nonprofit organization organized for the
				  purpose of lending the tangible personal property to the general public for use
				  by the public for nonprofit purposes are exempt from tax. The exemption
				  contained in this rule is applicable to tangible personal property only, and
				  not to taxable services. It is applicable to the sale of that property and not
				  to its rental to a nonprofit organization. Finally, the exemption is applicable
				  only to property purchased by a nonprofit organization for subsequent rental to
				  the general public. The exemption is not applicable to other property (e.g.,
				  office equipment) which the nonprofit organization might need for its ongoing
				  existence.
This rule is intended to implement Iowa Code section
				  422.45(36).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.51 - Sales to Nonprofit Legal Aid Organizations

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1988, the gross receipts from the sale
				  or rental of tangible personal property or from services performed, rendered,
				  or furnished to a nonprofit legal aid organization are exempt from tax.
This rule is intended to implement Iowa Code subsection
				  422.45(37).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.52 - Irrigation Equipment Used in Farming Operations

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1989, the gross receipts from the sale
				  or rental of irrigation equipment used in farming operations are exempt from
				  tax. The term "irrigation equipment" includes, but is not limited to, circle
				  irrigation systems and trickle irrigation systems. The term "farming
				  operations" has the same meaning as the term "agricultural production" set out
				  in 701-subrule 17.9(3), paragraph
"a,"
and as further
				  characterized in 18.44(2)
"a."
Effective May 18, 2001, and retroactive to April 1, 1995, the
				  gross receipts from the sale or rental of irrigation equipment, as defined
				  above, whether installed above or below ground are exempt from tax as long as
				  the equipment is sold or rented by a contractor or farmer and the equipment is
				  primarily used in agricultural operations.
Contractors or farmers entitled to the exemption set forth in
				  the previous paragraph may apply for a refund of taxes, interest or penalties
				  paid on the sale or rental of qualifying irrigation equipment for transactions
				  that occurred between April 1, 1995, and May 18, 2001. To be eligible for
				  refund, refund claims must be filed with the department prior to October 1,
				  2001. Refund claims are limited to $25,000 in the aggregate and will not be
				  allowed if not timely filed. If the amount of refund claims totals more than
				  $25,000 in the aggregate, the department will prorate the $25,000 among all
				  claimants in relation to the amounts of the claimants' valid claims.
This rule is intended to implement Iowa Code section 422.45
				  and 2001 Iowa Acts, House File 723.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.53 - Sales to Persons Engaged in the Consumer Rental Purchase Business

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1989, the gross receipts from the sale
				  of tangible personal property, except vehicles subject to registration, to
				  persons regularly engaged in the consumer purchase business are exempt from tax
				  if the property (1) is sold for the purpose of utilization in a transaction
				  involving a "consumer rental purchase agreement" as defined in Iowa Code
				  subsection
				  5373604(8), and
				  (2). the gross receipts from the consumer rental of
				  the property are subject to Iowa sales or use tax.
If property exempt under this rule is made use of for any
				  purpose other than a consumer rental purchase, the person claiming the
				  exemption is liable for the tax that would have been due had the exemption not
				  existed. The tax shall be computed on the original purchase price to the person
				  claiming the exemption. The aggregate of the tax paid on the consumer rental
				  purchase of the property, not exceeding the amount of sales or use tax owed,
				  shall be credited against the tax.
This rule is intended to implement Iowa Code section
				  422.45(18).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.54 - Sales of Advertising Material

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1990, gross receipts from the sales of
				  advertising material to any person in Iowa are exempt from tax if that person,
				  or any agent of that person, will, after the sale, send that advertising
				  material outside of Iowa and subsequent sole use of that material will be
				  outside this state.
For the purposes of this rule "advertising material" is
				  tangible personal property only, including paper. "Advertising material" is
				  limited to the following: brochures, catalogs, leaflets, fliers, order forms,
				  return envelopes, floppy discs, CD-ROMs, videotapes, and any similar items of
				  tangible personal property which will be used to promote sales of property or
				  services.
This rule is intended to implement Iowa Code section
				  422.45.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.56 - Wind Energy Conversion Property

Current through Register Vol. 47, No. 3, July 24, 2024
On and after July 1, 1993, the gross receipts from the sale
				  of property used to convert wind energy to electrical energy or the gross
				  receipts from the sale of materials used to manufacture, install, or construct
				  property used to convert wind energy to electrical energy shall be exempt from
				  tax.
For the purposes of this rule, "property used to convert wind
				  energy to electrical energy" means any device which converts wind energy to
				  usable electrical energy including, but not limited to, wind chargers,
				  windmills, wind turbines, pad mount transformers, substations, power lines, and
				  tower equipment.
This rule is intended to implement Iowa Code section 422.45
				  as amended by 1993 Iowa Acts, chapter 161.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.60 - Exempt Sales of Gases Used in the Manufacturing Process

Current through Register Vol. 47, No. 3, July 24, 2024
Effective May 24, 1999, but retroactive to January 1, 1991,
				  sales of argon and other similar gases to be used in the manufacturing process
				  are exempt from tax. For the purposes of this rule, only inert gases are gases
				  which are similar to argon. An "inert gas" is any gas which is normally
				  chemically inactive. It will not support combustion and cannot be used as
				  either a fuel or as an oxidizer Argon, nitrogen, carbon dioxide, helium, neon,
				  krypton, and xenon are nonexclusive examples of inert gases. Oxygen, hydrogen,
				  and methane are nonexclusive examples of gases which are not inert. These sales
				  are exempt only if the gas is purchased by a "manufacturer," for used in
				  "processing," as those terms are defined in subrule 18.45(1), for the period
				  prior to July 1, 1997, and as those terms are defined in subrule 18.58(1) for
				  the period beginning July 1, 1997.
This rule is intended to implement Iowa Code section 422.45
				  as amended by 1999 Iowa Acts, chapter 170.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 18 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-18.61 - Exclusion From Tax for Property Delivered by Certain Media

Current through Register Vol. 47, No. 3, July 24, 2024
For the period beginning March 15, 1995, a taxable "sale" of
				  tangible personal property does not occur if the substance of the transaction
				  is delivered to the purchaser digitally, electronically, or by utilizing cable,
				  radio waves, microwaves, satellites, or fiber optics. This exclusion from tax
				  is not applicable to any leasing of tangible personal property, a lease not
				  being a "sale" of tangible personal property for the purposes of Iowa sales and
				  use tax law.
Cedar Valley Leasing, Inc. v. Iowa Department of
				  Revenue,
274 N.W.2d 357 (Iowa 1979). The exclusion is also not
				  applicable to property delivered by any medium other than those listed above.
				  Sales of items such as artwork, drawings, photographs, music, electronic
				  greeting cards, "canned" software (see subrule 18.34(1)), entertainment
				  properties (e.g., films, concerts, books, and television and radio programs),
				  and all other digitized products delivered as described above are not taxable,
				  except the exclusion does not repeal by implication the tax on the service of
				  providing pay television. See rule
				  701-2656.
				  (422). If an order for a product is placed by way of any of the media described
				  above but the product ordered is delivered by conventional, physical means,
				  e.g., the U.S. Postal Service or common carrier, sale of the product is not
				  excluded from tax under this rule.
This rule is intended to implement Iowa Code Supplement
				  section 422.43 as amended by 2002 Iowa Acts, Senate File
				  2321.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 19 - Settlements-compromises and Abatements of Tax, Penalty, or Interest › Rule 701-19.1 - Settlements

Current through Register Vol. 47, No. 3, July 24, 2024
Pursuant to Iowa Code section
				  421.5, in addition to the
				  authority granted to the department pursuant to Iowa Code section
				  17A.10 and notwithstanding Iowa
				  Code section 7D.9, the department may, in its
				  sole discretion, settle any taxes, penalties, or interest. A settlement may be
				  a compromise or full abatement of any amount in dispute.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 19 - Settlements-compromises and Abatements of Tax, Penalty, or Interest › Rule 701-19.3 - Settlement Procedures and Limitations, Generally

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Whether
				to seek a settlement.
When determining whether to seek a settlement, a
				taxpayer should first consider whether a settlement is necessary. Nothing in
				this chapter is intended to preclude a taxpayer who misses the time provided by
				law to appeal a notice of assessment from paying the amount due, filing a
				refund claim, and contesting any denial of that refund claim as described in
				Iowa Code section 421.60(2)
"h."
If a taxpayer has not received a billing but has
				information that would adjust the liability down, the appropriate remedy is to
				file an amended return within the statute of limitations. If a taxpayer has
				received an estimated assessment and is within three years of when the
				assessment was issued, the taxpayer should file a return. If a taxpayer has
				received an assessment and is within the time period to file an appeal, it is
				proper to file an appeal rather than a settlement request. If a taxpayer does
				not dispute the liability, but is unable to pay the liability due to financial
				hardship, the taxpayer should submit an offer in compromise
				application.
(2)
Which type
				of settlement to seek.
Different types of settlements require
				different forms and procedures. Procedures for abatement, offer in compromise,
				and voluntary disclosure agreements are described in specific rules below. For
				matters currently under appeal pursuant to 701-Chapter 7, settlement requests
				must be submitted to the appeals section of the legal services and appeals
				division in accordance with 701-subrule 7.11(5). For matters currently under
				audit, settlement requests must be submitted to the department employee
				assigned to the audit.
(3)
Who may authorize a department settlement.
Only the director,
				the deputy director, or the division administrator of the legal services and
				appeals division may approve and sign settlements under this chapter unless
				otherwise specified in rule or designated by the director.
(4)
Discretionary nature of
				settlements.
There is no right to appeal an abatement denial, offer in
				compromise denial, or other settlement decision by the department under
				701-Chapter 7. As described in Iowa Code section
				421.5, a taxpayer shall not have
				the right to a settlement of any tax, penalty, or interest liability under this
				chapter or Iowa Code section
				421.5. Any determination shall
				be discretionary and shall be final and conclusive except in the case of fraud
				or mutual mistake of material fact or as otherwise stated in a written
				settlement agreement between the taxpayer and the department.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 19 - Settlements-compromises and Abatements of Tax, Penalty, or Interest › Rule 701-19.4 - Applications for Abatement

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
When to file.
Abatement is intended to be a possible remedy
				for taxpayers who have received a billing or refund denial letter and have
				information that could lead to a reduction in the liability, but failed to file
				a timely appeal. Grounds for abatement include doubt as to liability and
				promoting effective tax administration.
(2)
How to file an
				application.
To apply, a taxpayer must submit an application for
				abatement in the department's prescribed paper or electronic format. The
				application can be submitted through GovConnectIowa or by using the form
				available on the department's website and following the submission instructions
				on the form.
(3)
Required
				information.
A request for abatement must be submitted on the
				department's form. The form must be fully completed and properly
				signed.
(4)
Review of
				requests.
a. After the application
				has been submitted, it will be reviewed by department staff.
b. Additional information may be requested to
				assist the department in its review.
c. A letter will be issued to the applicant
				notifying the applicant of the decision to grant, deny or partially grant the
				abatement request. The department's decision on an abatement application will
				only be contained in a formal determination letter.
d. Applicants whose applications are granted
				in part will receive an agreement describing the terms of the partially granted
				abatement request and must sign and return that agreement to the department in
				order to receive the partially granted abatement.
e. Decisions to accept an abatement request
				in full or in part for doubt as to liability may be approved by the bureau
				chief of the compliance section of the tax management division or another staff
				member designated by the director.
f. Decisions to accept an abatement request
				to promote effective tax administration may only be approved by the director,
				the deputy director, or the division administrator of the legal services and
				appeals division.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 19 - Settlements-compromises and Abatements of Tax, Penalty, or Interest › Rule 701-19.5 - Offers in Compromise

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
When to
				file.
An offer in compromise packet should be used to apply for relief
				based on doubtful collectability or severe economic hardship.
(2)
How to submit a packet.
To apply, a taxpayer must submit an offer in compromise packet in the
				department's prescribed paper or electronic format. An offer in compromise
				packet can be submitted through GovConnectIowa or by using the form available
				on the department's website and following the submission instructions on the
				form.
(3)
Required
				information.
An offer in compromise must be submitted using the
				department's offer in compromise packet.
(4)
Review of requests.
a. After the packet has been submitted, it
				will be reviewed by department staff.
b. Additional information may be requested to
				assist the department in its review.
c. A letter will be issued to the applicant
				notifying the applicant of the decision to grant, deny or partially grant the
				offer in compromise request. The department's decision on an offer in
				compromise request will only be contained in a formal determination
				letter.
d. Applicants whose
				applications are granted in part will receive an agreement describing the terms
				of the partially granted offer in compromise request and must sign and return
				that agreement to the department in order to receive the partially granted
				offer in compromise.
e. Decisions
				to enter into an offer in compromise must be approved by the bureau chief of
				the central collections unit, the director, the deputy director, the division
				administrator of the legal services and appeals division, or another staff
				member designated by the director.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 20 - Filing and Extension of Tax Liens and Charging Off Uncollectible Tax Accounts › Rule 701-20.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
As used in the rules contained herein, the following
				  definitions apply unless the context otherwise requires:
"Assessment issued"
means the same as
				  defined in Iowa Code section
				  422.26(10).
"Charge off"
means moving an unpaid account
				  to inactive status. "Charge off" does not mean the account is deleted from the
				  department's records or that the account is not due and owed. Charge off does
				  not prevent the department from recovering all or part of the account through
				  actions including but not limited to bankruptcy, probate, or setoff or through
				  voluntary payment.
"Department"
means the Iowa department of
				  revenue.
"Director"
means the director of the
				  department or the director's authorized representative.
"Lien"
means the legal right or interest
				  against personal or real property provided by Iowa Code section
				  422.26 or other Iowa Code
				  sections making reference to Iowa Code section
				  422.26.
"Recorder"
means the county recorder of any
				  county in the state of Iowa.
"Taxes"
means all taxes or charges
				  administered by the department and any tax or charge to which Iowa Code section
				  422.26
				  applies.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 20 - Filing and Extension of Tax Liens and Charging Off Uncollectible Tax Accounts › Rule 701-20.2 - Place of Filing

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A notice of lien
				may be filed in the office of the recorder in any county.
(2) The director may charge off any account
				before the lien has lapsed if the taxpayer meets one or more of the following
				criteria:
a. The taxpayer is deceased, and
				there are no assets in the estate or there are no assets available for the
				payment of taxes under Iowa Code section
				633.425.
b. The taxpayer is a corporation that has
				dissolved or ceased to exist with no assets remaining.
c. The taxpayer is retired because of age or
				total disability (as described in rule
				701-104.12 (425)) with income
				and assets such that it would cause the taxpayer undue financial hardship if
				the department enforced collection of past due taxes. The director may require
				other evidence to determine when collection of tax would be a hardship on a
				taxpayer.
d. The taxpayer has
				unpaid tax amounting to less than $50.
e. The taxpayer cannot be found, after
				diligent inquiry, and has no property upon which the lien can attach.
f. The taxpayer is insolvent with no
				property, real or personal, upon which the lien can attach.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 20 - Filing and Extension of Tax Liens and Charging Off Uncollectible Tax Accounts › Rule 701-20.3 - Fees

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Pursuant to
				Iowa Code sections 422.26(1)  and
				331.604, a fee of $20 will be
				added to the unpaid liability of the taxpayer at the time the lien is filed. If
				two or more pages are required for the lien, an additional fee of $5 per page
				will be added to the unpaid liability of the taxpayer.
(2) Reserved.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 20 - Filing and Extension of Tax Liens and Charging Off Uncollectible Tax Accounts › Rule 701-20.4 - Determination of Eligible Foods

Current through Register Vol. 47, No. 3, July 24, 2024
Pursuant to 20.1(422,423), 20.2(422,423) and
,423), in order to be eligible for the sales tax exemption,
				  foods must be the same foods eligible for purchase by food coupons and shall
				  not include foods that in their original state may have been purchased by food
				  coupons but due to changes to the foods such as additional ingredients,
				  preparation, or any other change of state, they are no longer foods eligible
				  for purchase by food coupons.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 20 - Filing and Extension of Tax Liens and Charging Off Uncollectible Tax Accounts › Rule 701-20.5 - Meals and Prepared Food

Current through Register Vol. 47, No. 3, July 24, 2024
Meals and prepared food are subject to tax using different
				  criteria before July 1, 1985, and on or after July 1, 1985.
(1)
Before July 1, 1985.
Meals prepared for immediate consumption on or off the premises of the retailer
				are not eligible for the sales tax exemption. A meal shall consist of a
				diversified selection of foods, which would not be able to be consumed without
				at least some articles of tableware being present and which could not be
				conveniently consumed while one is standing or walking about. A meal would
				usually consist of a larger quantity of food than that which ordinarily
				comprises a single sandwich.
Treasure Island Catering company, Inc. v.
				State Board of Equalization,
1941, 19 Cal.2d 181.
a. Retailers who are considered serving meals
				shall include those who serve meals off the premises of the retailers such as
				caterers.
b. Meals that may be
				eligible for purchase with food coupons shall not be exempt from sales tax.
				This shall include carryout plate lunches that are served with articles of
				tableware. Tableware shall include dishes, glasses, and silverware and includes
				paper or plastic tableware.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 20 - Filing and Extension of Tax Liens and Charging Off Uncollectible Tax Accounts › Rule 701-20.6 - Vending Machines

Current through Register Vol. 47, No. 3, July 24, 2024
Before July 1, 1985, any food item which is sold through a
				  vending machine shall not be exempt from sales tax. On or after July 1, 1985,
				  prepared food and drinks sold through vending machines will be taxable either
				  if sold for consumption on the premises of the retailer under 20.5(2)
"a"
or if prepared by the retailer for immediate consumption
				  off of the premises of the retailer under 20.5(2)
"c."
Candy,
				  candy-coated items, candy products, and beverages described in subrule 20.1(3)
				  are taxable when sold through vending machines.
This rule is intended to implement Iowa Code section
				  422.45.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 20 - Filing and Extension of Tax Liens and Charging Off Uncollectible Tax Accounts › Rule 701-20.7 - Prescription Drugs and Devices

Current through Register Vol. 47, No. 3, July 24, 2024
Sales of prescription drugs and devices as defined in 20.7(1)
				  and dispensed for human use or consumption in accordance with 20.7(2) and
				  20.7(3) shall be exempt from sales tax. On and after July 1, 1992, rentals of
				  prescription devices as defined in subrule 20.7(1) below are exempt from
				  service tax. Gross receipts from the sales of oxygen prescribed by a licensed
				  physician or surgeon, osteopath, or osteopathic physician or surgeon for human
				  use or consumption are exempt from tax. On and after July 1,1992, gross
				  receipts from the sales of any oxygen purchased for human use or consumption
				  (whether prescribed or not) are exempt from tax.
(1)
Definitions of "prescription
				drug" for two periods of time.
a.
				For sales occurring between July 1, 1987, and June 30, 1993, a "prescription
				drug" is any of the following:
(1) A substance
				for which federal or state law requires a prescription before it may be legally
				dispensed to the public,
(2) A drug
				or device that under federal law is required prior to being dispensed or
				delivered to be labeled with the following statement: "Caution: Federal law
				prohibits dispensing without a prescription", or
(3) A drug or device that is required by any
				applicable federal or state law or regulation to be dispensed on prescription
				only, or is restricted to use by a practitioner only.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 20 - Filing and Extension of Tax Liens and Charging Off Uncollectible Tax Accounts › Rule 701-20.10 - Sales and Rentals Covered by Medicaid and Medicare

Current through Register Vol. 47, No. 3, July 24, 2024
Between July 1, 1992, and June 30, 1993, gross receipts from
				  the sale or rental of drugs, devices, equipment and supplies ("medications")
				  which are covered by Title XVIII (Medicare) or Title XIX (Medicaid) of the
				  federal Social Security Act are exempt from tax.
A "covered sale or rental" is one for which any portion of
				  the cost of medications is paid by the state of Iowa or the federal government
				  as required by the Medicaid or Medicare programs. A sale or rental is "covered"
				  even if a user of medications is required to pay a certain percentage or fixed
				  amount of its cost. Covered sales or rentals include those for which a user of
				  medications is reimbursed the cost of a purchase or rental; or sales or rentals
				  for which any portion of the cost is paid by any private insurance company
				  administering the Medicaid or Medicare programs on behalf of the state of Iowa
				  or the federal government. The direct purchase or rental of any medications by
				  the state of Iowa or the federal government is exempt from tax under existing
				  law, and this rule is not applicable to it.
For an extensive list of medications, the purchase or rental
				  of which is covered by Medicaid, see 441-Chapter 78, Iowa Administrative
				  Code.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 20 - Filing and Extension of Tax Liens and Charging Off Uncollectible Tax Accounts › Rule 701-20.11 - Reporting

Current through Register Vol. 47, No. 3, July 24, 2024
Retailers are required to keep records of and report the
				  actual total gross sales for each filing or reporting period. A deduction may
				  be taken for all tax-exempt sales but a record must be kept to substantiate all
				  deductions taken.
Certain retailers finding it difficult to maintain detailed
				  records of their taxable and nontaxable retail sales may alleviate this
				  difficulty by the use of a formula method which will reasonably approximate the
				  actual taxable receipts.
Written approval must be obtained from the audit and
				  compliance division of the department to use a formula method. If a retailer
				  requests an alternate formula, the retailer shall first list the reasons why an
				  alternate formula is necessary and, secondly, shall outline the proposed
				  formula in detail. If approval is given, the department reserves the right to
				  withdraw or require an update in procedure at any time.
The use of the formula is an authorization for reporting the
				  most accurate amount of taxable and nontaxable gross receipts but the retailer
				  shall be responsible for the actual tax liability. Additional assessments may
				  be made if an audit discloses the formula is not producing the proper tax
				  payments.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 21 - Federal Offset for Iowa Income Tax Obligations › Rule 701-21.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
The following definitions are applicable to the federal
				  offset program:
"Assessment"
means the determination of a
				  past due tax obligation and includes self-assessments. An assessment includes
				  the Iowa income tax, interest, penalties, fees or other charges associated with
				  the past due legally enforceable Iowa income tax obligation.
"Department," "state of Iowa," "Iowa"
or
"the state"
means the Iowa department of revenue.
"Director"
means the director of the Iowa
				  department of revenue or the director's authorized representative.
"Overpayment"
means a federal tax refund due
				  and owing to a person or persons.
"Past due legally enforceable Iowa income tax
				  obligation"
means a debt defined in
				  26 U.S.C.
				  6402(e)(5).
"Resident of Iowa"
means any person with a
				  federal overpayment for the year in which Iowa seeks offset and such person has
				  an Iowa address listed on that person's federal return for the tax period of
				  overpayment.
"Secretary"
means the Secretary of the
				  Treasury for the federal government.
"State income tax obligation"
or
"Iowa income tax obligation"
is intended to cover all Iowa
				  income taxes. This term includes all local income taxes administered by the
				  Iowa department of revenue or determined to be a "state income tax" under Iowa
				  law. Such taxes may include but are not limited to individual income tax,
				  income surtax, fiduciary income tax, withholding tax, or corporate income tax,
				  and penalties, interest, fines, judgments, or court costs relating to such tax
				  obligations.
"Tax refund offset"
means withholding or
				  reducing, in whole or in part, a federal tax refund payment by an amount
				  necessary to satisfy a past due legally enforceable state income tax obligation
				  owed by the payee (taxpayer) of the tax refund payment. This chapter only
				  involves the offset of tax refund payments under
				  26 U.S.C.
				  6402(e); it does not cover
				  the offset of federal payments other than tax refund payments for the
				  collection of past due legally enforceable state income tax obligations.
"Tax refund payment"
means the amount to be
				  refunded to a taxpayer by the federal government after the Internal Revenue
				  Service (IRS) has applied the taxpayer's overpayment to the taxpayer's past due
				  tax liabilities in accordance with
				  26 U.S.C.
				  6402(a) and
				  26 CFR
				  301.6402-3(a)(6).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 21 - Federal Offset for Iowa Income Tax Obligations › Rule 701-21.2 - Prerequisites for Requesting a Federal Offset

Current through Register Vol. 47, No. 3, July 24, 2024
The following requirements must be met before the state can
				  request an offset of a federal overpayment against an Iowa income tax
				  obligation:
(1) The state must have
				made written demand on the taxpayer to obtain payment of the state income tax
				obligation for which the request for offset is being submitted.
(2) Pre-offset notice. At least 60 days prior
				to requesting the offset of a taxpayer's federal overpayment for an Iowa income
				tax obligation, the state of Iowa must provide notice by certified mail, return
				receipt requested, to the person owing the Iowa income tax liability. This
				notice must include information as required by
				26 U.S.C.
				6402 and
				31 CFR
				285.8.
(3) The state must consider any evidence
				presented by the person owing the obligation and determine whether the amount
				or amounts are past due and legally enforceable.
(4) Additional pre-offset notices. The
				department must provide a taxpayer with an additional pre-offset notice if the
				amount of the obligation to be subject to offset is increased due to a new
				assessment. However, a new pre-offset notice is not required if there is an
				increase in the amount to be offset due to accrued interest, penalties or other
				charges associated with an Iowa income tax obligation in which notice has
				previously been given.
(5) Before
				offset of the federal refund can be requested by the state of Iowa, the
				person's Iowa income tax liability must be at least $25, unless otherwise
				provided based on the discretion of the department and the Secretary. If an
				individual owes more than one Iowa income tax obligation, the minimum amount
				will be applied to the aggregate amounts of such obligations owed to
				Iowa.
(6) Only residents of Iowa
				are subject to offsets under these rules.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 21 - Federal Offset for Iowa Income Tax Obligations › Rule 701-21.3 - Submission of Evidence

Current through Register Vol. 47, No. 3, July 24, 2024
A taxpayer may challenge the offset by submitting evidence
				  that all or part of the debt is not past due or not legally enforceable or that
				  the address shown on the taxpayer's federal return that resulted in the
				  overpayment is not within Iowa. The challenge must be postmarked or received
				  within 60 days of the date of the pre-offset notice in the manner described in
				  the pre-offset notice.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 21 - Federal Offset for Iowa Income Tax Obligations › Rule 701-21.4 - Procedure After Submission of Evidence

Current through Register Vol. 47, No. 3, July 24, 2024
Following timely receipt of evidence by the department from
				  the taxpayer, the department will notify the taxpayer in writing whether the
				  evidence submitted is sufficient to terminate the intended offset. If the
				  department determines that the evidence is sufficient, the procedure to
				  initiate the federal offset shall be terminated for that obligation and the
				  taxpayer's record of Iowa income tax obligation for that particular obligation
				  shall be adjusted accordingly. However, if the department determines that the
				  evidence is insufficient to show that the amount or amounts at issue are not,
				  in whole or in part, a past due and legally enforceable income tax obligation,
				  or that the address shown on the taxpayer's federal return that resulted in the
				  overpayment is not within Iowa, the department must notify the taxpayer of the
				  decision. The challenge of an offset under these rules is subject to judicial
				  review under Iowa Code section
				  17A.19.
In cases in which a taxpayer claims immunity from state
				  taxation due to being an enrolled member of an Indian tribe who lives on that
				  member's reservation and derives all of that member's income from that
				  reservation, the taxpayer may refer to
				  31 CFR
				  285.8(c)(3)(ii) for
				  additional information.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 21 - Federal Offset for Iowa Income Tax Obligations › Rule 701-21.6 - Erroneous Payments to Iowa

Current through Register Vol. 47, No. 3, July 24, 2024
If Iowa receives a notice from the Secretary that an
				  erroneous payment has been made to Iowa under these rules, Iowa must promptly
				  pay to the Secretary, in accordance with such rules and regulations as the
				  Secretary may prescribe, an amount equal to the amount of the erroneous payment
				  (without regard to whether any other amounts payable to Iowa under these rules
				  have been paid to Iowa). In the alternative, Iowa may return the erroneous
				  payment directly to the taxpayer. If this latter alternative is used by Iowa,
				  then Iowa must notify the Secretary of the erroneous offset being paid to the
				  taxpayer, and the taxpayer's records will be adjusted
				  accordingly.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 21 - Federal Offset for Iowa Income Tax Obligations › Rule 701-21.7 - Correcting and Updating Notice to the Secretary

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa must notify the Secretary of any deletion or decrease in
				  the amount of past due legally enforceable Iowa income tax obligation referred
				  to the Secretary for collection by offset under these rules. Iowa may also
				  notify the Secretary of any increases in the amount or amounts referred to the
				  Secretary for collection by offset under these rules provided that Iowa has
				  complied with the requirements of these rules with regard to such amount or
				  amounts.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 22 - Collection of Debts Owed the State of Iowa or a State Agency › Rule 701-22.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of this chapter, the following definitions shall
				  govern:
"Central collections unit"
means the unit
				  within the department charged with collecting debt for the department and other
				  entities pursuant to Iowa Code section
				  421.17(27)  or
				  any other Iowa statute.
"Debtor"
means any person having a
				  delinquent account, charge, fee, loan, or other indebtedness due the state of
				  Iowa or any state agency.
"Department"
means the Iowa department of
				  revenue.
"Director"
means the director of revenue or
				  the director's authorized representative.
"Liability"
or
"debt"
means
				  any liquidated sum due and owing to the state of Iowa or any state agency that
				  has accrued through contract, subrogation, tort, operation of law, or any legal
				  theory regardless of whether there is an outstanding judgment for that
				  sum.
"Person"
or
"entity"
means
				  individual, corporation, business trust, estate, trust, partnership or
				  association, limited liability company, or any other legal entity, but does not
				  include a state agency.
"State agency"
or
"agency"
includes but is not limited to entities listed in Iowa Code section
				  421.17(27)
"a."
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 22 - Collection of Debts Owed the State of Iowa or a State Agency › Rule 701-22.2 - Participation Guidelines

Current through Register Vol. 47, No. 3, July 24, 2024
The department may collect on behalf of a public agency at
				  the department's sole discretion. The department may require that a public
				  agency enter into an agreement for collection with the department prior to
				  collecting for the public agency. Agreements will be signed by the director or
				  another staff member of the department designated by the
				  director.