reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.56 - 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 III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.60 - 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 III - Sales, Use, and Excise Tax › Chapter 285 - Taxable and Exempt Sales Determined by Method of Transaction or Usage › Rule 701-285.61 - 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
				  701-26.56 (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 III - Sales, Use, and Excise Tax › Chapter 288 - Determination of a Sale and Sale Price › Rule 701-288.3 - Exemption Certificates, Direct Pay Permits, Fuel Used in Processing, and Beer and Wine Wholesalers

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General provision.
The sales price from the sale of tangible
				personal property or specified digital products to a purchaser for any exempt
				purpose are not subject to tax as provided by the Iowa sales and use tax
				statutes. In addition, a seller of tangible personal property or specified
				digital products need not collect Iowa sales or use tax from a purchaser that
				possesses a valid direct pay permit issued by the department of revenue.
				However, the following are requirements for the exemption and noncollection of
				tax by a seller when a direct pay permit is involved:
a. The sales tax liability for all sales of
				tangible personal property, specified digital products, and taxable services is
				upon the seller and the purchaser unless the seller takes from the purchaser a
				valid exemption certificate stating under penalty of perjury that the purchase
				is for a nontaxable purpose and is not a retail sale, or the seller is not
				obligated to collect tax due, or unless the seller takes a fuel exemption
				certificate. If the tangible personal property, specified digital products, or
				services are purchased tax-free pursuant to a valid exemption certificate and
				the tangible personal property, specified digital products, or services are
				used or disposed of by the purchaser in a nonexempt manner, the purchaser is
				solely liable for the taxes and shall remit the taxes directly to the
				department. The protection afforded a seller by this paragraph does not apply
				to a seller who fraudulently fails to collect tax or to a seller who solicits
				purchasers to participate in the unlawful claiming of an exemption.
b. The director is required to provide
				exemption certificates to assist retailers in properly accounting for
				nontaxable sales of tangible personal property, specified digital products, or
				services to buyers for exempt purposes. These exemption certificates must be
				completed as to the information required on the form in order to be
				valid.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 288 - Determination of a Sale and Sale Price › Rule 701-288.8 - Returned Merchandise

Current through Register Vol. 47, No. 3, July 24, 2024
When merchandise is sold and returned by a customer who
				  secures an allowance or a return of the full purchase price, the seller may
				  deduct the amount allowed as full credit or refund, provided the merchandise is
				  taxable merchandise and tax has been previously paid on the sales price.
An allowance shall not be made for the return of any
				  merchandise which (1) is exempt from either sales or use tax; or (2) has not
				  been reported in the taxpayer's tax previously paid.
This rule is intended to implement Iowa Code section
				  423.31.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 288 - Determination of a Sale and Sale Price › Rule 701-288.11 - Leased Departments

Current through Register Vol. 47, No. 3, July 24, 2024
When a permit holder leases a part of the premises where the
				  permit holder's retail business is conducted, the lessor shall immediately
				  notify the department and supply the following information:
(1) name and home office address of the
				lessee;
(2) type of merchandise sold
				by the lessee or service performed;
(3) date when the lessee began making sales
				or performing services at retail in Iowa on the leased premises; and
(4) whether the lessee has secured a permit
				to account directly to the department for tax due or if the lessee's sales will
				be accounted for in the lessor's tax return. Upon request, the department shall
				furnish a form to the lessor on which to report this information.
If the lessor fails to notify the department that a part of
				  the premises has been leased and does not furnish the requested information,
				  the lessor shall be responsible for tax due as a result of sales by the lessee,
				  unless the lessee has properly remitted the tax due.
The lessor who has leased a part of the premises shall report
				  to the department the names and addresses of all lessees. If the lessor is
				  accounting for the lessee's sales, the lessor shall, after the name of each
				  lessee, show the amount of net taxable sales made by the lessee and which net
				  taxable sales are included in the lessor's return. If the lessee is reporting
				  the tax directly to the department, the lessor shall show the permit number of
				  the lessee.
When the lessee has terminated selling activities, the lessor
				  shall immediately notify the department. This rule is intended to implement
				  Iowa Code section 423.25.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 288 - Determination of a Sale and Sale Price › Rule 701-288.15 - Premiums and Gifts

Current through Register Vol. 47, No. 3, July 24, 2024
A person who gives away or donates tangible personal
				  property, specified digital products, or taxable services shall be deemed to be
				  a consumer of such property, products, or services for tax purposes. The sales
				  price from the sale of tangible personal property, specified digital products,
				  or taxable services to such persons for such purposes shall be subject to
				  tax.
When a retailer purchases tangible personal property, a
				  specified digital product, or a taxable service, exclusive of tax, for the
				  purpose of resale in the regular course of business and later gives it away or
				  donates it, the retailer shall include in the return the value of the property,
				  product, or service at the retailer's cost price.
When a retailer sells tangible personal property, specified
				  digital products, or taxable services and furnishes a premium with the
				  property, product, or service sold, the retailer is considered to be the
				  ultimate consumer or user of the premium furnished.
This rule is intended to implement Iowa Code sections
				  423.1 and
				  423.2.
Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 289 - Underground Storage Tank Rules Incorporated by Reference › Rule 701-289.1 - Rules Incorporated

Current through Register Vol. 47, No. 3, July 24, 2024
Rules in 591-Chapters 5 and 6 of Iowa comprehensive petroleum
				  underground storage tank fund board (UST board) are incorporated with this
				  reference into the rules of the department of revenue.
This rule is intended to implement Iowa Code chapter
				  424.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
(1) When the word
"department"
appears herein, the word refers to and is
				synonymous with the "Iowa department of revenue"; the word
"director"
is the "director of revenue" or the director's
				authorized assistants and employees.
The administration of the individual income tax is a
				  responsibility of the department. The department is charged with the
				  administration of the individual income tax, fiduciary tax, withholding of tax
				  and individual estimate declarations, subject always to the rules, regulations
				  and direction of the director.
(2) The term
"computed tax"
means the amount of tax remaining before deductions of the personal exemption
				credit and other credits in Iowa Code chapter 422, division II, and before the
				computation of the school district surtax and the emergency medical services
				income surtax.
(3) The word
"taxpayer"
includes under this division:
a. Every resident of the state of
				Iowa.
b. Every part-year resident
				of the state of Iowa.
c. Every
				estate and trust resident of this state whose income is in whole or in part
				subject to the state income tax.
d.
				Nonresident individuals, estates and trusts (those with a situs outside of
				Iowa) receiving taxable income from property in Iowa or from business, trade,
				or profession or occupation carried on in this state.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.3 - Retention of Records

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Every
				individual subject to the tax imposed by Iowa Code section
				422.5 (whether or not the
				individual incurs liability for the tax) and every withholding agent subject to
				the provisions of Iowa Code section
				422.16 shall retain those books
				and records as required by Section 6001 of the Internal Revenue Code and
				federal income tax regulation 1.6001-1(e) including the federal income tax
				return and all supporting federal schedules. For taxpayers using an electronic
				data interchange process or technology also see 701-subrule 11.4(4).
(2) In addition, records relating to other
				deductions or additions to federal adjusted income and Iowa tax credits shall
				be retained so long as the contents may be material in the administration of
				the Iowa Code under the statutes of limitations for audit specified in Iowa
				Code section 422.25.
This rule is intended to implement Iowa Code sections
				  422.25 and
				  422.70.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.4 - Authority for Deductions

Current through Register Vol. 47, No. 3, July 24, 2024
Whether and to what extent deductions shall be allowed
				  depends upon specific legislative acts, and only where there is a clear
				  provision can any particular deduction be allowed. Therefore, a deduction will
				  be allowed only if the taxpayer can establish the validity and correctness of
				  such deduction.
This rule is intended to implement Iowa Code sections
				  422.7 and
				  422.9.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.5 - Jeopardy Assessments

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A
				jeopardy assessment may be made in a case where a return has been filed, and
				the director believes for any reason that collection of the tax will be
				jeopardized by delay; or in a case where a taxpayer fails to file a return,
				whether or not formally called upon to do so, in which case the department is
				authorized to estimate the income of the taxpayer upon the basis of available
				information, and to add penalty and interest.
(2) A jeopardy assessment is due and payable
				when the notice of the assessment is served upon the taxpayer. Proceedings to
				enforce the payment of the assessment by seizure or sale of any property of the
				taxpayer may be instituted immediately.
This rule is intended to implement Iowa Code section
				  422.30.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.6 - Information Deemed Confidential

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa Code sections
				  422.20 and
				  422.72 apply generally to the
				  director, deputies, auditors, agents, present or former officers and employees
				  of the department. Disclosure of information from a taxpayer's filed return or
				  report or other confidential state information by department of revenue
				  personnel to a third person is prohibited under the above sections. Other
				  persons having acquired information disclosed in a taxpayer's filed return or
				  report or other confidential state information will be bound by the same rules
				  of secrecy under these sections as any member of the department and will be
				  subject to the same penalties for violations as provided by law. See rule
				  701-6.3 (17A).
This rule is intended to implement Iowa Code sections
				  422.16,
				  422.20, and
				  422.72.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.8 - Delegations to Audit and Examine

Current through Register Vol. 47, No. 3, July 24, 2024
Pursuant to statutory authority, the director delegates to
				  authorized assistants and employees the power to examine returns and make
				  audits; and to determine the correct amount of tax due, subject to review by or
				  appeal to the director.
This rule is intended to implement Iowa Code section
				  422.70.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.9 - Bonding Procedure

Current through Register Vol. 47, No. 3, July 24, 2024
The director may, when necessary and advisable in order to
				  secure the collection of the tax required to be deducted and withheld or the
				  amount actually deducted, whichever is greater, require an employer or
				  withholding agent to file with the director a bond issued by a surety company
				  authorized to conduct business in Iowa and approved by the insurance
				  commissioner as to solvency and responsibility in an amount the director may
				  fix, or in lieu of bond, securities approved by the director in an amount the
				  director may prescribe and keep in the custody of the department. Pursuant to
				  the statutory authorization in Iowa Code section
				  422.16, the director has
				  determined that the following procedures will be instituted with regard to
				  bonds. However, the bonding procedures were applicable only to nonresident
				  employers or withholding agents for withholding taxes due prior to January 1,
				  1987. The penalty for failure of a withholding agent to file a bond, described
				  in subrule 300.9(4) applies to taxes required to be withheld on or after
				  January 1, 1990.
(1)
When
				required.
a.
New
				applications by withholding agents.
A new withholding agent applicant
				will be requested to post a bond or security if (1) it is determined upon a
				complete investigation of the applicant's financial status that the applicant
				would be unable to timely remit the tax, or (2) the new applicant held a
				withholding agent's identification number for a prior business and the
				remittance record of the tax under the prior identification number falls within
				one of the conditions in paragraph
"b"
below, or (3) the
				department experienced collection problems while the applicant was engaged in
				business under the prior identification number.
b.
Existing withholding
				agents.
Existing withholding agents shall be requested to post a bond
				or security when they have had two or more delinquencies in remitting the
				withholding tax during the last 24 months if filing returns on a quarterly
				basis or have had four or more delinquencies during the last 24 months if
				filing returns on a monthly basis. The simultaneous late filing of the return
				and the late payment of the tax will count as one delinquency. However, the
				late filing of the return or the late payment of the tax will not count as a
				delinquency if the withholding agent can satisfy one of the conditions set
				forth in Iowa Code section
				421.27.
c.
Waiver of bond.
If a
				withholding agent has been requested to post a bond or security or if a
				withholding agent applicant has been requested to post a bond or security, upon
				the filing of the bond or security, if the withholding agent maintains a good
				filing record for a period of two years, the withholding agent may request that
				the department waive the continued bond or security requirement.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.10 - Indexation

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa Code section
				  422.5 provides for the
				  adjustment of the tax brackets by a cumulative inflation factor to be
				  determined by the director. The requirement that provided that the state
				  general fund balance on June 30 of the prior calendar year had to be $60
				  million or more before there was indexation of the tax rate brackets for the
				  current year was repealed for tax years beginning on or after January 1,
				  1996.
This rule is intended to implement Iowa Code sections
				  422.4 and
				  422.21.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.12 - Indexation of the Optional Standard Deduction for Inflation

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after January 1,
				  1990, the optional standard deduction is indexed or increased by the cumulative
				  standard deduction factor computed by the department of revenue. The cumulative
				  standard deduction factor is the product of the annual standard deduction
				  factor for the 1989 calendar year and all standard deduction factors for
				  subsequent annual calendar years. The annual standard deduction factor is an
				  index, to be determined by the department of revenue by October 15 of the
				  calendar year, which reflects the purchasing power of the dollar as a result of
				  inflation during the fiscal year ending in that calendar year preceding the
				  calendar year for which the annual standard deduction factor is to apply. For
				  tax years beginning on or after January 1, 1996, the department shall use the
				  annual percentage change, but not less than 0 percent, in the gross domestic
				  product price deflator computed for the second quarter of the calendar year by
				  the Bureau of Economic Analysis of the United States Department of Commerce and
				  shall add all of that percentage change to 100 percent, rounded to the nearest
				  one-tenth of 1 percent. The annual standard deduction factor shall not be less
				  than 100 percent.
This rule is intended to implement Iowa Code section
				  422.4.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.14 - Information Returns for Reporting Income Payments to the Department of Revenue

Current through Register Vol. 47, No. 3, July 24, 2024
Effective January 1, 1993, every person, every corporation,
				  or agent of a person or corporation, lessees or mortgagors of real or personal
				  property, fiduciaries, employers, and all officers and employees of the state
				  or of any political subdivision of the state, having control, receipt, custody,
				  or disposal of any of the income items described in subrule 300.14(1), shall
				  file information returns with the department of revenue by the last day of
				  February following the end of the year in which the payments were made. For
				  purposes of this rule, "every person" is every individual who is a resident of
				  this state. For purposes of this rule, "every corporation" includes all
				  corporations that have a place of business in this state.
(1)
Incomes to be included in
				information returns.
The entities described in rule
				701-300.14 (422) are required to
				file information returns to the department of revenue on income payments of
				interest (other than interest coupons payable to the bearer), rents, salaries,
				wages, premiums, annuities, compensation, remunerations, emoluments,
				unemployment compensation, royalties, patronage dividends, or other fixed or
				determinable annual or periodic gains, profits, and income to the extent that
				the amount of income is great enough so that an information return on the
				income is required to be filed with the Internal Revenue Service (IRS) under
				provisions of the Internal Revenue Code. However, no reporting is required for
				payments of deferred compensation, pensions, and annuities to nonresidents of
				Iowa. In addition, no reporting is required for any type of income payment
				where information on the income payment is available to the department from the
				Internal Revenue Service.
(2)
Information on income payments available from the Internal Revenue
				Service.
The department can obtain information from the Internal
				Revenue Service on many income payments made to individuals in the tax year.
				The following is a list of federal reporting forms and the types of information
				available on those forms from the Internal Revenue Service for residents of
				Iowa:
a. 1065 K-1.
1. Dividends.
2. Interest.
3. Tax withheld.
4. Royalties.
5. Ordinary income or (loss).
6. Real estate income or (loss).
7. Other rental income or (loss).
8. Other portfolio income or
				(loss).
9. Guaranteed
				payments.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.16 - Preparation of Taxpayers' Returns by Department Employees

Current through Register Vol. 47, No. 3, July 24, 2024
A department employee can assist a taxpayer in the
				  preparation and completion of the taxpayer's individual income tax returns and
				  other state tax returns during the employee's hours of employment for the
				  department in either of the following situations:
1. At the time the department employee is
				conducting an audit of the taxpayer.
2. When the department employee is requested
				to prepare a taxpayer's individual income tax return or other tax returns by
				the taxpayer, the taxpayer's spouse, or the taxpayer's authorized
				representative.
This rule is intended to implement Iowa Code section
				  421.17.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.17 - Resident Determination

Current through Register Vol. 47, No. 3, July 24, 2024
For Iowa individual income tax purposes, an individual is a
				  "resident" if:
(1) the individual
				maintains a permanent place of abode within the state, or
(2) the individual is domiciled in the state.
				An individual who is determined to be a "resident" of Iowa is subject to Iowa
				income tax on all the individual's income for the taxable year, no matter
				whether the income is earned within Iowa or outside of Iowa, except when an
				item of income is specifically exempted from taxation by a provision of federal
				or Iowa law.
(1)
Permanent
				place of abode.
The establishment of a permanent place of abode
				requires the maintenance of a place of abode over a sufficient period of time
				to create a well-settled physical connection with a given locality. Significant
				factors, among others, to be considered in determining whether an individual
				maintains such a permanent place of abode are:
(1) the amount of time the individual spends
				in the locality;
(2) the nature of
				the individual's place of abode;
(3) the individual's activities in the
				locality; and
(4) the individual's
				intentions with regard to the length and nature of the individual's stay.
There is a rebuttable presumption that an individual is
				  maintaining a "permanent place of abode" if the individual maintains a place of
				  abode within this state and spends more than 183 days of the tax year within
				  this state. The term "place of abode" includes a house, apartment, condominium,
				  mobile home, or other dwelling place maintained or occupied by the individual
				  whether or not owned or rented by the individual. Situations where presence in
				  the state for 183 days of the tax year may not cause an individual to be
				  considered to be maintaining a "permanent place of abode" would include
				  situations where presence in the state is not voluntary, such as confinement to
				  a correctional facility or an extended hospital
				  stay.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 300 - Administration › Rule 701-300.18 - Tax Treatment of Income Repaid in Current Tax Year Which Had Been Reported on Prior Iowa Individual Income Tax Return

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 1992, if a
				  taxpayer repays in the current tax year an amount of income that had been
				  reported on the taxpayer's Iowa individual income tax return for a prior year
				  that had been filed with the department and the taxpayer would have been
				  eligible for atax benefit under similar circumstances under Section 1341 of the
				  Internal Revenue Code, the taxpayer will be eligible for a tax benefit on the
				  Iowa return for the current tax year. The tax benefit will be either the
				  reduced tax on the Iowa return for the current tax year due to the deduction of
				  the repaid income or the reduction in tax on the Iowa return or returns for the
				  prior year(s) due to the exclusion of the repaid income. The reduction in tax
				  from the return for the prior year may be claimed as a refundable credit on the
				  return for the current tax year.
EXAMPLE A: A taxpayer reported $7,000 in unemployment
				  benefits on the taxpayer's 1994 Iowa return that the taxpayer had received in
				  1994. In early 1995 the taxpayer was notified that $4,000 of the unemployment
				  benefits had to be repaid. The benefits were repaid by the end of 1995. The
				  taxpayer claimed a deduction on the 1995 Iowa return for the amount of
				  unemployment benefits repaid during 1995 which had been reported on the
				  taxpayer's 1994 Iowa return as that action gave the taxpayer a greater
				  reduction in Iowa income tax liability than the taxpayer would have received
				  from a reduction in tax on the 1994 return by recomputing the liability by
				  excluding the repaid income.
EXAMPLE B: A taxpayer had received a $5,000 bonus in 1994
				  which was reported on the taxpayer's 1994 Iowa return. In 1995 the taxpayer's
				  employer advised the employee that the bonus was awarded in error and to be
				  repaid. The $5,000 bonus was repaid to the employer by the end of 1995. The
				  taxpayer claimed a credit of $440 on the 1995 Iowa return for repayment of the
				  bonus in 1995. This represented the reduction in tax for 1994 from recomputing
				  the tax liability for that year without the $5,000 bonus. This provided the
				  taxpayer a greater tax benefit than the taxpayer would have received from
				  claiming a deduction on the 1995 Iowa return from repayment of the
				  bonus.
This rule is intended to implement Iowa Code section
				  422.5 as amended by 1996 Iowa
				  Acts, Senate File 2168.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 301 - Filing Return and Payment of Tax › Rule 701-301.1 - Who Must File

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Residents of Iowa.
a.
Residents under 65 years of age.
For each taxable year, every
				resident of Iowa, except any resident claimed as a dependent on another
				person's return, whose net income is greater than $13,500 in the case of
				married persons, heads of household, and surviving spouses or greater than
				$9,000 in the case of single persons or married persons filing separately must
				make, sign, and file a return. In the case of married persons filing
				separately, if the combined net income of both spouses exceeds $13,500, both
				spouses must make, sign, and file a return even if one of the spouse's net
				income is $9,000 or less. Each resident who is claimed as a dependent on
				another person's return and whose net income is $5,000 or more must make, sign,
				and file a return. For purposes of this subrule, the portion of a lump-sum
				distribution subject to separate federal tax, the federal standard deduction or
				itemized deductions to the extent it does not exceed federal adjusted gross
				income, the personal exemption allowed for federal purposes, the qualified
				business income deduction allowed for federal purposes, and any net operating
				loss carryover are included in net income to determine if a person must file a
				return.
b.
Residents 65
				years of age or older.
For each taxable year, every resident of Iowa,
				except any resident claimed as a dependent on another person's return, who is
				at least 65 years of age or older on December 31 of the tax year, whose net
				income is greater than $32,000 in the case of married persons, heads of
				household, and surviving spouses or greater than $24,000 in the case of single
				persons or married persons filing separately must make, sign, and file a
				return. In the case of married persons filing separately, if the combined net
				income of both spouses exceeds $32,000, both spouses must make, sign, and file
				a return even if one of the spouse's net income is $24,000 or less. For married
				persons, for purposes of this paragraph, only one spouse is required to be at
				least 65 years of age or older on December 31 of the tax year. Each resident
				who is claimed as a dependent on another person's return and whose net income
				is $5,000 or more must make, sign, and file a return.
For purposes of this subrule, the portion of a lump-sum
				  distribution subject to separate federal tax, the federal standard deduction or
				  itemized deductions to the extent it does not exceed federal adjusted gross
				  income, the personal exemption allowed for federal purposes, the qualified
				  business income deduction allowed for federal purposes, and any net operating
				  loss carryover taken for federal purposes are included in net income to
				  determine if a person must file a return.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 301 - Filing Return and Payment of Tax › Rule 701-301.4 - Filing Status

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Single taxpayers.
The term "single person" includes, for
				income tax purposes, an unmarried person, a person legally separated under a
				decree of divorce or separate maintenance or any other person not properly
				classified under subrules 39.4(2) through 39.4(8).
(2)
Married taxpayers.
A
				taxpayer is considered married for the entire year if on the last day of the
				tax year the taxpayer is
(a)
married and living together with
				the taxpayer's spouse,
(b)
married and living apart from the
				spouse, but not legally separated under a decree of divorce or separate
				maintenance,
(c)
living together with the spouse in a common
				law marriage that is recognized by the state where the common law marriage
				exists or
(d)
widowed but the spouse died during the
				year.
(3)
Common law
				marriage.
A common law marriage is a social relationship between a man
				and a woman that meets all the necessary requisites of a marriage except that
				it was not solemnized, performed or witnessed by an official authorized by law
				to perform marriages. The necessary elements of a common law marriage are:
(a) a present intent of both parties freely
				given to become married,
(b) a
				public declaration by the parties or a holding out to the public that they are
				husband and wife,
(c) continuous
				cohabitation together as husband and wife (this means consummation of the
				marriage), and
(d) both parties must
				be capable of entering into the marriage relationship. No special time limit is
				necessary to establish a common law marriage. Iowa recognizes, for income tax
				purposes, all valid common law marriages.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 301 - Filing Return and Payment of Tax › Rule 701-301.5 - Payment of Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Payment
				of tax for wage earners.
Withholding of tax on wage earners is
				required under Iowa Code section
				422.16. See 701-Chapter
				307.
(2)
Payment of tax on
				income not subject to withholding.
Those taxpayers with income not
				subject to withholding which will produce a tax liability of $200 or more shall
				file and pay a declaration of estimated tax. See 701-Chapter 308.
(3)
Full estimated payment on
				original due date.
When an extension is requested as provided by Iowa
				Code section 422.21, the total amount of
				estimated tax must be paid on or before the due date for filing the
				return.
(4)
Balance of tax
				due.
If the computation on the tax return shows additional tax due, it
				shall be paid in full with the filing of the return.
(5)
Payment of tax by uncertified
				checks.
The department will accept uncertified checks in payment of
				income taxes, provided the checks are collectible for their full amount without
				any deduction for exchange or other charges. The date on which the department
				receives the check will be considered the date of payment, so far as the
				taxpayer is concerned, unless the check is returned dishonored. If one check is
				remitted to cover two or more individuals' taxes, the remittance must be
				accompanied by a letter of transmittal stating:
(a) the name of the drawer of the
				check;
(b) the amount of the
				check;
(c) the amount of any cash,
				money order or other instrument included in the same remittance;
(d) the name of each individual whose tax is
				to be paid by the remittance; and
(e) the amount of payment on account of each
				individual.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 301 - Filing Return and Payment of Tax › Rule 701-301.6 - Minimum Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1) and (2)
				Reserved.
(3)
Minimum tax
				for tax years beginning on or after January 1, 1987.
a.
Method for computation of the
				minimum tax.
For tax years beginning on or after January 1, 1987, the
				minimum tax is imposed only to the extent that the minimum tax exceeds the
				taxpayer's regular income tax liability. The minimum tax rate is 75 percent of
				the maximum regular tax rate for individual income tax. For tax years beginning
				on or after January 1, 1987, through December 31, 1997, the tax rate is 7.5
				percent of the taxpayer's minimum taxable income. For tax years beginning on or
				after January 1, 1998, the tax rate is 6.7 percent of the taxpayer's minimum
				taxable income. Minimum taxable income is computed as follows:
Iowa Taxable Income
Plus:
*Applicable Adjustments and **Tax
				  Preference Items (from Form IA 6251)
Subtotal
Less:
***Applicable Exemption
				  Amount
Minimum Taxable Income
(1) *The federal adjustments that are also
				applicable in computing state minimum taxable income are:
1. Depreciation of property placed in service
				after 1986.
2. Circulation and
				research and experimental expenditures paid or incurred after 1986.
3. Mining, exploration, and development costs
				paid or incurred after 1986.
4.
				Long-term contracts entered into after 2-28-86.
5. Pollution control facilities placed in
				service after 1986.
6. Installment
				sales of certain property.
7. Basis
				adjustment.
8. Certain loss
				limitations.
9. Tax shelter farm
				loss.
10. Passive activity
				loss.
11. Adjustments related to
				beneficiaries of estates and trusts.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 301 - Filing Return and Payment of Tax › Rule 701-301.8 - State Income Tax Limited to Taxpayer's Net Worth Immediately Before the Distressed Sale

Current through Register Vol. 47, No. 3, July 24, 2024
Taxpayers whose net incomes include gains or losses from
				  distressed sales may limit their state income tax liabilities for the tax years
				  in which the distress sales occurred to their net worths immediately before the
				  distressed sales. The state income tax liability of a taxpayer is the aggregate
				  of the taxpayer's income tax plus the taxpayer's minimum tax plus the
				  taxpayer's lump-sum tax. For purposes of this provision, a distressed sale is
				  the forfeiture of an installment real estate contract, the transfer of real or
				  personal property securing a debt to a creditor in cancellation of that debt,
				  or from the sale or exchange of property as a result of actual notice of
				  foreclosure. Proof of forfeiture of the installment real estate contract, proof
				  of transfer of property to a creditor in cancellation of a debt, or a copy of
				  the notice of foreclosure will constitute documentation of the distressed sale
				  and must be made a part of the return. A copy of the balance sheet showing the
				  taxpayer's net worth immediately before the distressed sale must also be
				  provided with the return.
The balance sheet supporting the taxpayer's net worth must
				  include the taxpayer's personal assets and liabilities as well as the assets of
				  the taxpayer's farm or other business. In the case of married taxpayers, except
				  in the case of a husband and wife who lived apart at all times during the tax
				  year, the assets and liabilities of both spouses must be considered in
				  determining the taxpayers' net worth immediately before the distressed
				  sale.
This rule is intended to implement Iowa Code section
				  422.5.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 301 - Filing Return and Payment of Tax › Rule 701-301.10 - Election to Report Excess Income From Sale or Exchange of Livestock Due to Drought in the Next Tax Year

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 1990, a
				  taxpayer may elect to report excess income from the sale or exchange of
				  livestock due to drought on the Iowa return for the next tax year if the
				  taxpayer qualified for similar treatment of the excess income under Section
				  451(e) of the Internal Revenue Code. This election is available only to a
				  taxpayer on the cash receipts and disbursements method of accounting whose
				  principal trade or business is farming as described in Section 6420(c)(3) of
				  the Internal Revenue Code. For purposes of this rule the election applies to
				  all livestock held for sale or exchange, whether raised or purchased for
				  resale. This election also applies to livestock used for draft, breeding,
				  dairy, or sporting purposes which were held less than two years in the case of
				  cattle and horses and less than one year in the case of other livestock. For
				  purposes of this election, livestock does not include poultry.
The area in which the livestock was sold or exchanged must
				  have been declared a disaster area due to drought. However, the sale or
				  exchange can take place before or after the area is declared a disaster area as
				  long as the same disaster (the drought) caused the livestock sale. In order for
				  the election to report excess income in the following tax year to be valid, the
				  election must be made by the due date of the return, including extensions.
				  Additional information about computing the excess income as well as information
				  needed on the statement for making the election is described in Treasury
				  Regulation §1.451 -7.
This rule is intended to implement Iowa Code section
				  422.5.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 301 - Filing Return and Payment of Tax › Rule 701-301.11 - Forgiveness of Tax for an Individual Whose Federal Income Tax Was Forgiven Because the Individual Was Killed Outside the United States Due to Military or Terroristic Action

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years ending on or after August 2, 1990, an
				  individual's Iowa income tax is forgiven if the person's federal income tax was
				  forgiven because the individual was killed in a combat zone, the individual was
				  missing in action and presumed dead, or the individual was killed outside the
				  United States due to terrorist or military action while the person was a
				  military or civilian employee of the United States. The Iowa income tax is
				  forgiven on the return for the tax year in which the individual was killed or
				  was missing and was presumed dead, and is forgiven on the return for the tax
				  year prior to the year of death. In a situation where the person that was
				  killed was married at the time of death, no tax will be due on the return filed
				  for the year of death if a joint state return or a married filing separately on
				  the combined state return is filed for that tax year. In the case of the return
				  for the tax year prior to the year of death for the person killed in military
				  or terrorist action, all the tax will be forgiven on the return if the person
				  was married at the time of death and a joint state return or a married filing
				  separate state return was filed for this prior year. However, if the person
				  that was killed had filed a return using the married filing separately on the
				  combined return form status, only the state income tax attributable to the
				  person that was killed will be forgiven. The department will not honor an
				  amended return for the prior year to change the filing status from separately
				  on the combined return form to joint return so all the state income tax for
				  both spouses will be forgiven.
When a state income tax return or claim for refund is filed
				  for forgiveness of tax for an individual who was killed in military or
				  terrorist action, a notation should be entered at the top of the return
				  "Forgiveness of Tax-Killed in Military Action" or "Forgiveness of Tax-Killed in
				  Terrorist Action" depending on how the individual was killed. In addition, a
				  copy of the death certificate, or other evidence of the person's death or
				  evidence establishing that the individual is missing in action and presumed
				  dead, should be attached to the claim for refund or the tax return. A refund
				  claim for forgiveness of tax will be honored only if the claim is made within
				  the statute of limitations for refund provided in Iowa Code subsection
				  422.73(2).
This rule is intended to implement Iowa Code sections
				  422.5 and
				  422.73.