reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.6 - Interest and Dividends From Foreign Securities and Securities of States and Other Political Subdivisions

Current through Register Vol. 47, No. 3, July 24, 2024
Interest and dividends from foreign securities and securities
				  of states and their political subdivisions including Iowa shall be included in
				  taxable income for periods beginning on or after January 1, 1980. For tax
				  periods beginning on or after January 1, 1987, subtract interest expense
				  allocable to interest exempt from federal income tax which was disallowed as a
				  deduction under Internal Revenue Code Section 265(b) or 291(e)(1)(B).
For tax years beginning on or after January 1, 1987, add
				  dividends received from regulated investment companies exempt from federal
				  income tax under Section 852(b)(5) of the Internal Revenue Code and subtract
				  the loss on the sale or exchange of a share of a regulated investment company
				  held for six months or less to the extent the loss was disallowed under Section
				  852(b)(4)(B) of the Internal Revenue Code.
For tax years beginning on or after January 1, 2001, add, to
				  the extent not already included, income from the sale of obligations of the
				  state of Iowa and its political subdivisions and interest and dividend income
				  from these obligations. Gains or losses from the sale or other disposition of
				  bonds issued by the state of Iowa or its political subdivisions, along with
				  interest and dividend income from these bonds, shall be included in Iowa
				  taxable income unless the law authorizing these obligations specifically
				  exempts the income from the sale and interest and dividend income from Iowa
				  franchise tax.
This rule is intended to implement Iowa Code sections
				  422.35 and
				  422.61 as amended by 2001 Iowa
				  Acts, House File 715.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.7 - Safe Harbor Leases

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years ending after January 1, 1981, deductions in
				  determining federal taxable income for sale-leaseback agreements taken as a
				  result of the application of Section 168(f)(8) of the Internal Revenue Code
				  shall be added in determining Iowa taxable income to the extent such deductions
				  cannot be taken under provisions of Sections 162, 163 and 167 of the Internal
				  Revenue Code. The lessor shall add depreciation and interest expense, and the
				  lessee shall add rental expense. When the deduction for depreciation is not
				  allowed under a previous provision of this rule, the lessee shall be allowed a
				  deduction for depreciation on any property involved in a sale-leaseback
				  agreement. The depreciation shall be computed in accordance with Section 168(a)
				  of the Internal Revenue Code. Income received as a result of sale-leaseback
				  agreement shall be deducted in determining Iowa taxable income. The lessee
				  shall deduct interest income and the lessor shall deduct rent income. Each
				  lessor and lessee corporation shall include a copy of federal Form 6793 in its
				  Iowa franchise tax return for the year in which a safe harbor lease is entered
				  into.
This rule is intended to implement Iowa Code sections
				  422.35 and
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.9 - Work Opportunity Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Where a financial institution claims the federal work
				  opportunity tax credit as provided in Section 51 of the Internal Revenue Code,
				  the amount of credit allowable shall be a deduction from Iowa taxable income to
				  the extent the credit increased federal taxable income.
This rule is intended to implement Iowa Code sections
				  422.35 and
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.11 - Gains and Losses on Property Acquired Before January 1, 1934

Current through Register Vol. 47, No. 3, July 24, 2024
Where property was acquired prior to January 1, 1934, the
				  basis as of January 1, 1934, for determining capital or other gains or losses
				  is the higher of cost, adjusted for depreciation allowed or allowable to
				  January 1, 1934, or fair market value as of that date.
City National
				  Bank of Clinton v. Iowa State Tax Commission,
251 Iowa 603, 102 N.W.2d
				  381 (1960).
If as a result of this provision a basis is to be used for
				  purposes of Iowa franchise tax which is different from the basis used for
				  purposes of federal income tax, an appropriate adjustment must be made and
				  detailed schedules supplied in the computation of Iowa income subject to
				  franchise tax.
This rule is intended to implement Iowa Code sections
				  422.35 and
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.12 - Federal Income Tax Deduction

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 1980, a
				  deduction for 50 percent of federal income taxes paid or accrued is not
				  allowed. Cash-basis taxpayers are not allowed a deduction for 50 percent of
				  federal income taxes paid during a tax year beginning on or after January 1,
				  1980, which represent the preceding year's tax or additional taxes for prior
				  years. Fifty percent of a federal income tax refund received during a tax year
				  beginning on or after January 1, 1980, shall not be reported as income. For tax
				  years beginning on or after January 1, 1990, because the federal environmental
				  tax is deducted in computing federal taxable income and Iowa Code section
				  422.61(3)
"a"
does not allow the deduction of federal income taxes, the
				  federal environmental tax must be added to federal taxable income.
This rule is intended to implement Iowa Code sections
				  422.35 and
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.13 - Iowa Franchise Taxes

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa franchise taxes paid or accrued during the tax year as
				  may be applicable under the method of filing are permissible deductions for
				  federal corporation income tax purposes, but not for purposes of determining
				  Iowa net income. To the extent taxes were deducted in the determination of
				  federal taxable income, they shall be added to federal taxable income for Iowa
				  franchise tax purposes. Refunds of Iowa franchise tax to the extent that the
				  returns are included in the determination of federal taxable income shall all
				  be subtracted from federal taxable income.
This rule is intended to implement Iowa Code section
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.14 - Method of Accounting, Accounting Period

Current through Register Vol. 47, No. 3, July 24, 2024
The return shall be computed on the same basis and for the
				  same accounting period as the taxpayer's return for federal corporation income
				  tax purposes. Permission to change accounting methods or accounting periods for
				  franchise tax purposes is not required provided the taxpayer furnishes the
				  department with a copy of the federal consent.
This rule is intended to implement Iowa Code sections
				  422.35 and
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.15 - Consolidated Returns

Current through Register Vol. 47, No. 3, July 24, 2024
There is no provision in the Iowa franchise tax law to allow
				  financial institutions to file consolidated Iowa franchise tax returns with
				  another financial institution or another corporation as defined in Iowa Code
				  section 422.32. In the absence of any
				  statutory authority for allowing consolidated Iowa franchise tax returns,
				  separate Iowa franchise tax returns must be filed.
This rule is intended to implement Iowa Code sections
				  421.14 and
				  422.68(1).
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.16 - Federal Rulings and Regulations

Current through Register Vol. 47, No. 3, July 24, 2024
In determining whether "taxable income," "net operating loss
				  deduction" or any other deductions are computed for federal tax purposes under,
				  or have the same meaning as provided by, the Internal Revenue Code, the
				  department will use applicable rulings and regulations that have been duly
				  promulgated by the Commissioner of Internal Revenue, unless the director has
				  created rules and regulations or has exercised discretionary powers as
				  prescribed by statute which call for an alternative method for determining
				  "taxable income," "net operating loss deduction," or any other deductions, or
				  unless the department finds that an applicable Internal Revenue ruling or
				  regulation is unauthorized according to the Iowa Code.
This rule is intended to implement Iowa Code sections
				  422.35 and
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.17 - Charitable Contributions Relating to the Endow Iowa Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2010, a
				  taxpayer who claims an endow Iowa tax credit in accordance with rule
				  701-58.13 (15E,422) cannot claim
				  a deduction for charitable contributions under Section 170 of the Internal
				  Revenue Code for the amount of the contribution for which the tax credit is
				  claimed for Iowa tax purposes.
This rule is intended to implement Iowa Code section
				  15E.305.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.18 - Depreciation of Speculative Shell Buildings

Current through Register Vol. 47, No. 3, July 24, 2024
(1) For tax years beginning on or after July
				1, 1992, speculative shell buildings constructed or reconstructed after that
				date may be depreciated as 15-year property under the accelerated cost of
				recovery system of the Internal Revenue Code. If the taxpayer has deducted
				depreciation on the speculative shell building on the taxpayer's federal income
				tax return, that amount of depreciation must be added to federal taxable income
				in order to deduct depreciation under this rule.
(2) On sale or other disposition of the
				speculative shell building, the taxpayer must report on the taxpayer's Iowa
				corporation income tax return the same gain or loss reported on the taxpayer's
				federal corporation income tax return. If, while owned by the taxpayer, the
				building is converted from a speculative shell building to another use, the
				taxpayer must deduct the same amount of depreciation on the taxpayer's Iowa tax
				return as is deducted on the taxpayer's federal tax return.
(3) For the purposes of this rule, the term
				"speculative shell building" means a building as defined in Iowa Code section
				427.1, subsection (27)
"c."
This rule is intended to implement Iowa Code sections
				  422.35 and
				  422.63.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.19 - Deduction of Multipurpose Vehicle Registration Fee

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 1992, and
				  before January 1, 2005, corporations may claim a deduction for 60 percent of
				  the amount of the registration fee paid for a multipurpose vehicle under Iowa
				  Code section 321.124, subsection 3, paragraph
"h."
In order to qualify for this deduction, no part of the
				  multipurpose vehicle registration fee may have been deducted as an ordinary and
				  necessary business expense.
For tax years beginning on or after January 1, 2005, the
				  deduction for Iowa franchise tax for multipurpose vehicle registration fees is
				  the same as allowed under Section 164 of the Internal Revenue Code for federal
				  tax purposes.
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.21 - S Corporation and Limited Liability Company Financial Institutions

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 1997, a
				  financial institution as defined in Section 581 of the Internal Revenue Code
				  which has in effect an election under Subchapter S of the Internal Revenue Code
				  must compute an amount of income as if the financial institution were subject
				  to federal corporation income tax. For tax years beginning on or after July 1,
				  2004, a financial institution organized as a limited liability company under
				  Iowa Code chapter 524 that is taxed as a partnership for federal income tax
				  purposes must compute an amount of income as if the financial institution were
				  subject to federal corporation income tax. The income is to be computed in the
				  same manner as a financial institution that is subject to or liable for federal
				  income tax under the Internal Revenue Code in effect for the applicable tax
				  would compute its federal taxable income.
This rule is intended to implement Iowa Code section
				  422.61 as amended by 2004 Iowa
				  Acts, House File 2484.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.22 - Deduction for Contributions Made to the Endowment Fund of the Iowa Educational Savings Plan Trust

Current through Register Vol. 47, No. 3, July 24, 2024
To the extent that the contribution was not deductible for
				  federal income tax purposes, any gift, grant, or donation to the endowment fund
				  of the Iowa educational savings plan trust may be deducted for Iowa franchise
				  tax purposes. The contribution must be made on or after July 1, 1998, but
				  before April 15, 2004. Effective April 15, 2004, the deduction for
				  contributions made to the endowment fund is repealed.
This rule is intended to implement Iowa Code sections
				  422.35 as amended by 1998 Iowa
				  Acts, House File 2119, and 422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.25 - Basis of Franchise Tax

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa Code section
				  422.60 imposes a franchise tax
				  on financial institutions (as defined in 701-subrule 57.1(2)) for the privilege
				  of doing business within the state. The tax is measured by net income. For
				  financial institutions subject to the tax, the tax is levied and collected only
				  on income which may accrue or be recognized to the financial institutions from
				  business done or carried on in the state plus net income from certain sources
				  without the state which by rule follows the commercial domicile of the
				  financial institution.
If a financial institution carries on business entirely
				  within the state of Iowa, no allocation or apportionment of its income may be
				  made. The financial institution will be presumed to be carrying on its business
				  entirely within the state of Iowa if its activities are carried on only within
				  Iowa, even though it receives income from sources outside the state in the form
				  of interest, dividends, royalties, and other sources of income from
				  intangibles.
(1)
Definition-doing business.
The term "doing business" is used
				in a comprehensive sense and includes all activities or any transactions for
				the purpose of financial or pecuniary gain or profit. Irrespective of the
				nature of its activities, every financial institution organized for profit and
				carrying out any of the purposes of its organization shall be deemed to be
				"doing business." In determining whether a financial institution is doing
				business, it is immaterial whether its activities actually result in a profit
				or loss.
(2)
Definition-carrying on business partly within and partly without the
				state.
"Carrying on business partly within and partly without the
				state" means having business activities in at least one other state sufficient
				to meet the minimum constitutional standards for doing business in a state
				under the due process and commerce clauses of the United States Constitution.
				The determination of whether a financial institution is carrying on business
				partly within and partly without the state must be made on a
				tax-year-by-tax-year basis. The activities of past or future years have no
				bearing on the current year.
The following nonexclusive activities if done on a regular
				  and continuing basis by financial institution officers or employees in at least
				  one other state would constitute the minimum activities which would meet the
				  constitutional standards for doing business in a state under the due process
				  and commerce clauses of the United States Constitution:
a. Solicitation of loans by traveling loan
				officers.
b. Collection of overdue
				accounts.
c. Any other activities
				carried on in advancement, promotion, or fulfillment of the business of the
				financial institution.
This rule is intended to implement Iowa Code sections
				  422.60 and
				  422.63.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.27 - Net Gains and Losses From the Sale of Assets

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of administration of this rule, a capital gain
				  or loss shall mean the sale price or value at the time of disposal of an asset
				  less the adjusted basis, whether reportable as short-term or long-term capital
				  gain or ordinary income for federal income tax purposes.
(1) Gain or loss from the sale, exchange, or
				other disposition of real or tangible or intangible personal property, if the
				property while owned by the taxpayer was used in the taxpayer's trade or
				business, shall be apportioned by the business activity ratio applicable to the
				year the gain or loss is reported on the federal income tax return and may at
				the taxpayer's election be included in the computation of the business activity
				ratio as follows:
a. Gain from the sale,
				exchange, or other disposition of real property shall be included in the
				numerator if the property is located in this state.
b. Gain from the sale, exchange, or other
				disposition of tangible personal property shall be included in the numerator
				if:
(1) The property has a situs in this state
				at the time of sale; or
(2) The
				taxpayer's commercial domicile is in this state and the taxpayer is not taxable
				in the state in which the property had a situs.
c. Gains from the sale, exchange, or other
				disposition of intangible personal property shall be included in the numerator
				if the taxpayer's commercial domicile is in this state.
d. All gains shall be included in the
				denominator of the activity ratio.
A taxpayer cannot elect to exclude or include gains or loss
				  from the sale of assets where the election would result in an understatement of
				  income reasonably attributable to Iowa. Noninclusive examples of gains or loss
				  from the sale, exchange or other disposition of real or tangible or intangible
				  property which may not be included in the computation of the business activity
				  ratio because to do so would result in an understatement of net income
				  reasonably attributable to Iowa are the gain recognized under an election
				  pursuant to Section 338 of the Internal Revenue Code or gain recognized under
				  Section 631(a) of the Internal Revenue Code.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.30 - Broadband Infrastructure Grant Exemption

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Broadband infrastructure grant
				exemption, generally.
For tax years beginning on or after January 1,
				2019, certain qualifying communications service providers may subtract, to the
				extent included in income, the amount of qualifying government grants used to
				install broadband infrastructure that facilitates broadband service in targeted
				service areas at or above download and upload speeds identified by the Federal
				Communications Commission pursuant to Section 706 of the federal
				Telecommunications Act of 1996, as amended. This rule explains terms not
				defined in Iowa Code section
				422.35.
(2)
Definitions.
"Facilitate"
shall have the same meaning as
				  defined in Iowa Code section
				  8B.1.
"Grant"
means a transfer for a governmental
				  purpose of money or property to a transferee that is not a related party to or
				  an agent of the transferor. The transfer must not impose any obligation or
				  condition to directly or indirectly repay any amount to the transferor or a
				  related party. Obligations or conditions intended solely to assure expenditure
				  of the transferred moneys in accordance with the governmental purpose of the
				  transfer do not prevent a transfer from being a grant.
1. "Federal grant" means any grant issued by
				the United States government, including any agency or instrumentality
				thereof.
2. "State grant" means any
				grant issued by any state of the United States, the District of Columbia, or a
				territory or possession of the United States, including any agency or
				instrumentality thereof.
3. "Local
				grant" means any grant issued by any city, county, township, school district,
				or any other unit of local government, including any agency or instrumentality
				thereof.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.32 - Covid-19 Grant Exclusion

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
For purposes of this rule:
"Administering agency"
means the economic
				  development authority, the Iowa finance authority, or the department of
				  agriculture and land stewardship.
"Grant recipient"
means a person who applies
				  for and is issued a qualifying COVID-19 grant by an administering
				  agency.
"Issued"
means the approval of the grant
				  recipient's application and amount for a qualifying COVID-19 grant by an
				  administering agency, regardless of when the grant funds were paid by the
				  administering agency.
(2)
Qualifying COVID-19 grant programs.
a. The department is responsible for
				determining whether a grant program provides "qualifying COVID-19 grants" as
				defined in Iowa Code section
				422.7(62)  as
				amended by 2021 Iowa Acts, Senate File 619, section 5. In making this
				determination, and for purposes of the definition of "qualifying COVID-19
				grant," a grant program is "created to primarily provide COVID-19 related
				financial assistance to economically impacted individuals and businesses
				located in this state" if that grant program, at the time of its inception, was
				intended by the administering agency to provide a majority (more than 50
				percent) of its financial assistance to or for the benefit of businesses that
				are doing business in Iowa or are deriving income from sources within Iowa, and
				that are economically affected by the COVID-19 pandemic.
b. The administering agency shall notify the
				director of the existence of any grant program it believes may be a qualifying
				COVID-19 grant program. Upon such notification, the department will request
				from the administering agency the information necessary to determine whether
				that program is a qualifying COVID-19 grant as defined in Iowa Code section
				422.7(62)  as
				amended by 2021 Iowa Acts, Senate File 619, section 5, and this rule. The
				administering agency shall provide the department with the requested
				information within the time frame prescribed by the department in its request.
				Failure to provide the requested information to the department shall prevent
				the department from determining that the grant program is a qualifying COVID-19
				grant. Grant programs not specifically listed below in paragraph
				59.32(2)
"c"
are not qualifying COVID-19 grants and are not
				eligible for the exclusion provided in this rule, even if that program may
				otherwise meet the definition of "qualifying COVID-19 grant" in Iowa Code
				section 422.7(62)  as
				amended by 2021 Iowa Acts, Senate File 619, section 5.
c. For an exhaustive list of programs that
				have been identified by the department as qualifying COVID-19 grants, including
				a general description of each program's grant recipients, that may qualify for
				the exclusion from Iowa net income under subrule 59.32(3), see 701-paragraph
				53.30(2)
"c."
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 603 - Assessments, Refunds, Appeals › Rule 701-603.1 - Notice of Discrepancies

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Notice of adjustment.
An employee of the department,
				designated by the director to examine returns and make audits, who discovers
				discrepancies in returns or learns that the income of the taxpayer may not have
				been listed, in whole or in part, or that no return was filed when one was due,
				is authorized to notify the taxpayer of the discovery by ordinary mail. The
				notice shall not be termed an assessment, and it may inform the taxpayer of the
				amount due if the information discovered is correct.
(2)
Right of taxpayer upon receipt of
				notice of adjustment.
A taxpayer who has received notice of an
				adjustment in connection with a return may pay the additional amount stated to
				be due. If payment is made, and the taxpayer wishes to contest the matter, the
				taxpayer should then file claim for refund. However, payment will not be
				required until assessment has been made (although interest will continue to
				accrue if payment is not made). If no payment is made, the taxpayer may discuss
				with the employee who notified the taxpayer of the discrepancy, either in
				person or through correspondence, all matters of fact and law which the
				taxpayer considers relevant to the situation. Documents and records supporting
				the taxpayer's position may be required.
This rule is intended to implement Iowa Code sections
				  422.25,
				  422.28 and
				  422.66.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 603 - Assessments, Refunds, Appeals › Rule 701-603.2 - Notice of Assessment

Current through Register Vol. 47, No. 3, July 24, 2024
If after following the procedure outlined in subrule 60.1(2)
				  no agreement is reached, and the taxpayer does not pay the amount determined to
				  be correct, a notice of assessment shall be sent to the taxpayer by mail. If
				  the period in which the correct amount of tax can be determined is nearly at an
				  end, either a notice of assessment, without compliance with subrules 60.1(1)
				  and 60.1(2), or a jeopardy assessment may be issued. All notices of assessment
				  shall bear the signature of the director.
This rule is intended to implement Iowa Code sections
				  422.25,
				  422.30 and
				  422.66.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 603 - Assessments, Refunds, Appeals › Rule 701-603.3 - Refund of Overpaid Tax

Current through Register Vol. 47, No. 3, July 24, 2024
The following are provisions for refunding or crediting to
				  the taxpayer deposits or payments for tax in excess of amounts legally
				  due.
(1) A claim for refund of
				franchise tax may be made on a form obtainable from the department. Claims for
				refund should not be mailed in the same envelope or attached to the return. In
				the case of a claim filed by an agent of the taxpayer, a power of attorney must
				accompany the claim.
(2) A
				franchise taxpayer shall not offset a refund or overpayment of tax for one year
				as a prior payment of tax of a subsequent year on the return of a subsequent
				year without authorization in writing by the department. The department may,
				however, apply an overpayment, or a refund otherwise due the taxpayer, to any
				tax due or to become due from the taxpayer.
(3) When an overpayment of estimated tax is
				indicated on the face of the return, the overpayment will ordinarily be
				refunded to the taxpayer by the department without the filing of a formal claim
				for refund. If a refund of the indicated overpayment is not received within a
				reasonable period of time, a claim for refund may be filed by the taxpayer on
				an official form obtainable from the Taxpayer Services Section, Iowa Department
				of Revenue, P.O. Box 10457, Des Moines, Iowa 50306.
If an overpayment of income tax is claimed as a credit
				  against estimated tax for the succeeding taxable year, such amount shall be
				  considered as a payment of the income tax for the succeeding taxable year and
				  no claim for credit or refund shall be allowed.
When a taxpayer elects to have an overpayment credited to
				  estimated tax for the succeeding year, interest may be properly assessed on a
				  deficiency of income tax for the year in which the overpayment arose. If a
				  taxpayer elects to have all or part of an overpayment shown on the return
				  applied to the estimated income tax for the succeeding taxable year or
				  refunded, the election is binding to the taxpayer.
An overpayment of tax may be used to offset any outstanding
				  tax liability owed by the taxpayer, but once an elected amount is credited as a
				  payment of estimated tax for the succeeding year, it loses its character as an
				  overpayment for the year in which it arose and thereafter cannot offset any
				  subsequently determined tax liability.
(4) Reserved.
(5) Refunds-statute of limitations for tax
				years ending after January 1, 1979. The statute of limitations with respect to
				which refunds or credits may be claimed is:
a.
				The later of:
(1) Three years after the due
				date of payment upon which refund or credit is claimed; or
(2) One year after which such payment was
				actually made.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 604 - Estimated Tax for Financial Institutions › Rule 701-604.1 - Who Must Pay Estimated Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General rule.
Every corporate taxpayer subject to the
				franchise tax on financial institutions shall pay estimated tax if the amount
				of tax payable, less credits, can reasonably be expected to be more than $1000
				for the calendar or fiscal year. The amount of estimated tax paid shall be used
				as a credit on the Iowa franchise tax return.
(2)
Definition.
For purposes
				of this division, "estimated tax" means the amount which the taxpayer estimates
				to be the tax due and payable under division V of Iowa Code chapter 422.
This rule is intended to implement Iowa Code section
				  422.85 as amended by 1989 Iowa
				  Acts, Senate File 154.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 604 - Estimated Tax for Financial Institutions › Rule 701-604.2 - Time for Filing and Payment of Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Time for filing.
a.
General rule.
The date for filing the first estimated tax
				payment is on or before the last day of the fourth month of the tax year. The
				estimated tax form is to be filed with the Franchise Estimate Processing, P.O.
				Box 10413, Des Moines, Iowa 50306.
b.
Amended estimates.
Generally, whenever a taxpayer who is required to make estimated tax payments
				has reason to believe that its Iowa franchise tax may increase or decrease, an
				amended estimate shall be filed at such time to reflect the increase or
				decrease in estimated Iowa franchise tax. The amended estimate shall be made on
				or before the next installment date. The unpaid balance after amending the
				estimate should be paid in equal installments on the remaining payment
				dates.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 604 - Estimated Tax for Financial Institutions › Rule 701-604.4 - Reporting Forms

Current through Register Vol. 47, No. 3, July 24, 2024
Financial institutions which have paid estimated tax in the
				  prior year will receive by mail a preaddressed reporting form. Blank reporting
				  forms are available from the department for those making an estimate for the
				  first time, or when the preaddressed form is misplaced or lost.
This rule is intended to implement Iowa Code section
				  422.21.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 604 - Estimated Tax for Financial Institutions › Rule 701-604.5 - Penalties

Current through Register Vol. 47, No. 3, July 24, 2024
Failure to file and underpayment of estimated tax.
(1)
Underpayment penalty.
a. A penalty is imposed for underpayment of
				the estimated tax by the taxpayer. This underpayment penalty is imposed whether
				or not there was reasonable cause for the underpayment. The Iowa penalty for
				underpayment of estimated tax is computed on Form IA 2220.
b. The amount of the underpayment penalty is
				determined at the statutory rate upon the amount of underpayment of the
				estimated tax for the period from the date the amount is required to be paid
				until the last day of the fourth month following the close of the income year,
				or the date the underpayment is paid, whichever is earlier.
EXAMPLE. A calendar year financial institution is required to
				  make four equal estimated payments of $2,500 in the current year to meet the
				  exception to the underpayment of estimated tax penalty. The financial
				  institution does not make a first quarter estimated payment which was due on
				  April 30, but makes an estimated payment of $5,000 for the second quarter on
				  June 30. The financial institution is subject to the underpayment of estimated
				  tax penalty for the period from April 30 to June 30, when the underpayment was
				  paid.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VIII - Fiduciary Income Tax › Chapter 700 - Fiduciary Income Tax › Rule 701-700.1 - Administration

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
The following definitions cover 701-Chapter 89
				and are in addition to the definitions contained in Iowa Code section
				422.4.
"Administrator"
means the administrator of
				  the compliance division of the department of revenue or the personal
				  representative of an intestate estate.
"Compliance division"
is the organizational
				  unit of the department created by the director to administer the inheritance
				  and fiduciary income tax laws.
"Department"
means the department of
				  revenue.
"Director"
means the director of
				  revenue.
"Gross income"
includes any and all income
				  prior to any deductions as set forth on the Iowa fiduciary return of
				  income.
"Personal representative"
means the
				  executor, administrator or trustee of a decedent's estate.
"Tax"
means the income tax imposed on
				  estates and trusts under Iowa Code section
				  422.6.
"Taxable income"
is the income of the
				  fiduciary and also includes distributions to beneficiaries as set forth on the
				  Iowa fiduciary return of income.
"Taxpayer"
means the executor, administrator
				  or other personal representative of a decedent's estate required to file a
				  return for the estate and the decedent under Iowa Code sections
				  422.14 and
				  422.23. "Taxpayer" also means
				  the trustee of a trust subject to tax under
				  26 U.S.C. Section
				  641 and required to file a return under
				  26 U.S.C. Section
				  6012(b), as well as the
				  trustee of the bankruptcy estate of an individual under Chapter 7 or 11 of
				  Title 11 of the United States Code.
(2)
Delegation of authority.
The director delegates to the administrator of the compliance division, subject
				always to the supervision and review of the director, the authority to
				administer the fiduciary income tax. This authority specifically includes, but
				is not limited to: determining the correct fiduciary income tax liability;
				making tax liability assessments; issuing refunds; releasing tax liens; filing
				tax liability claims in probated estates and releasing the claims upon payment
				of the tax; and issuing the certificate of acquittance authorized by Iowa Code
				section 422.27. The administrator of the
				compliance division may delegate the examination and audit of tax returns to
				the supervisors, agents and employees and representatives of the department.
This rule is intended to implement Iowa Code sections
				  421.2,
				  421.4,
				  422.6,
				  422.23,
				  422.25,
				  422.26,
				  422.27 and
				  422.73.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VIII - Fiduciary Income Tax › Chapter 700 - Fiduciary Income Tax › Rule 701-700.5 - Extension of Time to File

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Automatic extension of time to file.
a. If the taxpayer has paid at least 90
				percent of the tax required to be shown due by the due date and has not filed a
				return by the due date, the director will consider that the taxpayer has
				requested an extension of time to file the return and will automatically grant
				an extension of up to six months to file the return. The taxpayer does not have
				to file an application for extension form with the department to get the
				automatic extension to file the return within the six-month period after the
				due date and not be subject to penalty. However, if the taxpayer wants to make
				a tax payment to ensure that at least 90 percent of the tax has been paid on or
				before the due date, the payment should be made with the Iowa fiduciary income
				tax payment voucher form. This form can be found on the department's website at
				tax.iowa.gov; requested by mail from the Taxpayer Services Section, P.O. Box
				10457, Des Moines, Iowa 50306; or requested by telephone at
				(515)281-3114.
b. To determine
				whether or not at least 90 percent of the tax was paid on or before the due
				date, the aggregate amount of tax credits applicable on the return plus the tax
				payments made on or before the due date are divided by the tax required to be
				shown due on the return. The tax required to be shown on the return is the sum
				of the income tax, lump-sum tax, minimum tax, and the trust portion of the ESBT
				tax. The tax credits applicable are the credits set out in Iowa Code chapter
				422, subchapter II, and Iowa Code section
				422.111. The tax payments to be
				considered for purposes of determining whether 90 percent of the tax was paid
				are the withholding tax payments, estimate payments, composite tax payments,
				and payments made with the Iowa fiduciary income tax voucher form to ensure
				that 90 percent of the tax was paid timely.
c. If the aggregate of the tax credits and
				the tax payments is equal to or greater than 90 percent of the tax required to
				be shown due, the taxpayer will have met the "90 percent" test and no penalty
				will be assessed. However, the taxpayer will still be subject to statutory
				interest on any tax due when the return is filed.
d. Any tax elections will be considered to be
				valid in instances when the return is filed within the six-month extended
				period after the due date. The fact that the taxpayer has paid less than 90
				percent of the tax required to be shown due will not invalidate any tax
				elections made on the return, if the return is filed within the six-month
				extended period.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VIII - Fiduciary Income Tax › Chapter 700 - Fiduciary Income Tax › Rule 701-700.6 - Penalties

Current through Register Vol. 47, No. 3, July 24, 2024
See rule
				  701-10.6 (421) for the
				  calculation of penalty for tax periods beginning on or after January 1,
				  1991.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VIII - Fiduciary Income Tax › Chapter 700 - Fiduciary Income Tax › Rule 701-700.7 - Interest or Refunds on Net Operating Loss Carrybacks

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Interest on unpaid tax.
Tax not paid within the time prescribed by law, including the period during an
				extension of time, draws interest at the rate described in rule
				701-10.2 (421). Payments made
				are first credited to penalty and interest due and then to the tax liability.
				See
Ashland Oil Co. v. Iowa Department of Revenue and Finance
,
				452 N.W.2d 162 (Iowa 1990).
(2)
Interest on refunds and tax paid prior to due date.
For the
				purpose of determining the time interest begins to accrue, all income tax
				withheld, estimated tax paid and other tax paid prior to the due date shall be
				deemed to be paid on the last day the return is required to be filed
				disregarding any extensions of time to file the return and pay the
				tax.
(3)
Interest on a net
				operating loss carryback-the second calendar month period-on or after April 30,
				1981.
For net operating losses occurring in any of the taxable years
				ending on or after April 30, 1981, interest accrues on excess tax paid in a
				prior year, if the loss is carried back to such year, only after the close of
				the taxable year in which the loss occurs or on the first day of the second
				calendar month following the date the tax to be refunded was paid, whichever
				time is later.
This rule is intended to implement Iowa Code section
				  422.25.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VIII - Fiduciary Income Tax › Chapter 700 - Fiduciary Income Tax › Rule 701-700.9 - Audits, Assessments and Refunds

Current through Register Vol. 47, No. 3, July 24, 2024
Rules
				  701-43.1 (422) to
				  701-43.3 (422) governing the
				  audit of individual income tax returns, the assessment for tax or additional
				  tax due, and the refund of excessive tax paid shall also govern the audit of
				  the fiduciary income tax return and the assessment and refund of fiduciary
				  income tax.
This rule is intended to implement Iowa Code sections
				  422.16,
				  422.25,
				  422.30,
				  422.70 and
				  422.73.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VIII - Fiduciary Income Tax › Chapter 700 - Fiduciary Income Tax › Rule 701-700.11 - Appeals to the Director

Current through Register Vol. 47, No. 3, July 24, 2024
The denial of a request for an income tax certificate of
				  acquittance may be appealed. An appeal to the director must be in writing and
				  must be made within 60 days of the denial. 701-Chapter 7 shall govern appeals
				  to the director.
This rule is intended to implement Iowa Code chapter 17A and
				  sections 421.60 and
				  422.28.
Iowa Administrative Code › Agency 701 - Revenue Department › Title X - Inheritance Tax › Chapter 900 - Inheritance Tax › Rule 701-900.5 - Gross Estate

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Iowa real and tangible personal property.
a. Real estate and tangible personal property
				with a situs in the state of Iowa and in which the decedent had an interest at
				the time of death is includable in the gross estate regardless of whether the
				decedent was a resident of Iowa. It is immaterial whether the property, or
				interest, is owned singly, jointly, or in common.
b. Certain other real and tangible personal
				property with a situs in the state of Iowa in which the decedent did not have
				an interest at death may also be part of the gross estate for tax purposes.
				Examples of such property transfers include, but are not limited to, transfers
				of real estate in which the grantor retained a life estate, life interest,
				interest or the power of revocation, property or interest in property in trust,
				and gifts made within three years of death in excess of the federal gift tax
				exclusion. These constitute transfers of property in which the decedent may not
				have an interest at death, but are includable in the gross estate for
				inheritance tax purposes.
In re Dieleman's Estate v. Dept. of
				Revenue,
222 N.W.2d 459 (Iowa 1974);
In re English's
				Estate,
206 N.W.2d 305 (Iowa 1973); and
Lincoln's Estate v.
				Briggs,
199 N.W.2d 337 (Iowa 1972).
c. A nonresident decedent's interest in a
				corporation, limited liability company, or partnership that owns real or
				tangible personal property with an Iowa situs that is titled in the name of
				that business entity is not subject to inheritance tax. An interest in a
				business entity is intangible personal property which follows the residence of
				the decedent for the purposes of inheritance tax.
d. Tangible personal property as defined in
				Iowa Code section 633.276 with an Iowa situs which
				is distributed in kind from the estate is not subject to inheritance tax if the
				aggregate value of all tangible personal property in the estate does not exceed
				$5,000. See 86.2(1)
"c"
(1)"5."