Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 10 - Interest, Penalty, Exceptions to Penalty, and Jeopardy Assessments › Rule 701-10.76 - Penalties

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Cigarettes.
The following is a list of offenses which subject
				the violator to a penalty:
a. The failure of
				a permit holder to maintain proper records;
b. The sale of taxable cigarettes without a
				permit;
c. The filing of a late,
				false or incomplete report with the intent to evade tax by a cigarette
				distributor, distributing agent or wholesaler;
d. Acting as a distributing agent without a
				valid permit; and
e. A violation of
				any provision of Iowa Code chapter 453A or these rules.
Penalties for these offenses are as follows:
(1) A $200 penalty for the first
				violation.
(2) A $500 penalty for a
				second violation within three years of the first violation.
(3) A $1,000 penalty for a third or
				subsequent violation within three years of the first violation.
Penalties for possession of unstamped cigarettes are as
				  follows:
(4) A $200 penalty
				for the first violation if a person is in possession of more than 40 but not
				more than 400 unstamped cigarettes.
(5) A $500 penalty for the first violation if
				a person is in possession of more than 400 but not more than 2,000 unstamped
				cigarettes.
(6) A $1,000 penalty
				for the first violation if a person is in possession of more than 2,000
				unstamped cigarettes for violations occurring prior to July 1, 2004. A $25 per
				pack penalty for the first violation if a person is in possession of more than
				2,000 unstamped cigarettes for violations occurring on or after July 1,
				2004.
(7) For a second violation
				within three years of the first violation, the penalty is $400 if a person is
				in possession of more than 40 but not more than 400 unstamped cigarettes;
				$1,000 if a person is in possession of more than 400 but not more than 2,000
				unstamped cigarettes; and $2,000 if a person is in possession of more than
				2,000 unstamped cigarettes for violations occurring prior to July 1, 2004. A
				$35 per pack penalty applies if a person is in possession of more than 2,000
				unstamped cigarettes for violations occurring on or after July 1,
				2004.
(8) For a third or subsequent
				violation within three years of the first violation, the penalty is $600 if a
				person is in possession of more than 40 but not more than 400 unstamped
				cigarettes; $1,500 if a person is in possession of more than 400 but not more
				than 2,000 unstamped cigarettes; and $3,000 if a person is in possession of
				more than 2,000 unstamped cigarettes for violations occurring prior to July 1,
				2004. A $45 per pack penalty applies if a person is in possession of more than
				2,000 unstamped cigarettes for violations occurring on or after July 1, 2004.
See rule
				  701-10.6 (421) for penalties
				  related to failure to timely file a return, failure to timely pay the tax due,
				  audit deficiency, and willful failure to file a return with the intent to evade
				  the tax. If, upon audit, it is determined that any person has failed to pay at
				  least 90 percent of the tax imposed by Iowa Code chapter 453A, division I,
				  which failure was not the result of a violation enumerated above, a penalty of
				  5 percent of the tax deficiency shall be imposed. This penalty is not subject
				  to waiver for reasonable cause.
See rule
				  701-10.7 (421) for statutory
				  exceptions to penalty.