Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 8 - Forms and Communications › Rule 701-8.7 - Mandatory Electronic Filing for Certain Taxpayers

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa corporate and fiduciary income and franchise taxpayers,
				  and pass-through entities subject to Iowa income reporting requirements, are
				  required to file their annual returns in an electronic format approved by the
				  department for any tax year in which certain criteria are met. This rule
				  provides information needed to determine whether any entity is subject to this
				  electronic filing requirement for a given tax year.
(1)
Definitions.
"Business entity,"
when used in this rule,
				  means entities taxed as corporations, partnerships, S corporations, and
				  financial institutions as defined in Iowa Code section
				  422.61(1).
"Fiduciary taxpayer"
means the same as
				  "fiduciary" as defined in Iowa Code section
				  422.4(4).
"Iowa tax credits"
means refundable and
				  nonrefundable tax credits authorized under the Iowa Code for the tax year in
				  which they are claimed or applied, but does not include credits for prior
				  payments or composite credits.
"Return,"
when used in this rule, means Form
				  IA 1120, IA 1120S, IA 1120F, IA 1065, IA PTE-C, or IA 1041, as context
				  requires, and includes amended returns, supporting schedules, attachments, or
				  lists which are supplemental to or part of the filed return.
"Taxpayer,"
unless the context otherwise
				  requires, means any business entity, financial institution, or fiduciary
				  taxpayer as defined in this rule.
"Tax year"
means any period of up to 12
				  months, including periods of less than 12 months, for which a taxpayer subject
				  to this rule is required to file an Iowa income tax, franchise tax, or
				  information return.
"Total gross receipts"
means gross receipts
				  or sales from all business operations conducted within and without Iowa without
				  any adjustment for returns and allowances, and also includes receipts from all
				  interest, dividends, rents, and royalties; income from ordinary and capital
				  gains; and the distributive share of income received by the taxpayer from a
				  partnership, S corporation, estate, or trust.
(2)
Electronic format for
				filing.
A taxpayer that meets any of the criteria for mandatory
				electronic filing in subrule 8.7(3) shall file a paperless Iowa income or
				franchise tax return by way of the Internal Revenue Service (IRS) Modernized
				e-File (MeF) program, also known as federal/state electronic filing, in a
				manner consistent with the requirements of rule
				701-8.5 (422).
(3)
Criteria for mandatory electronic
				filing.
This subrule applies to business entities for tax years ending
				on or after December 31, 2022, and to fiduciary taxpayers for tax years ending
				on or after December 31, 2023. Every taxpayer required to file an Iowa income
				or franchise tax return for an applicable year must file using the electronic
				format specified in subrule 8.7(2) if the taxpayer meets any of the following
				criteria for the tax year:
a.
Gross
				receipts.
The taxpayer has $250,000 or more in total gross receipts
				for the tax year.
b.
Iowa
				tax credits.
The taxpayer claims or applies $25,000 or more of Iowa
				tax credits on the return for the tax year.
c.
Iowa Schedules K-l.
The
				taxpayer is required to issue ten or more Iowa Schedules K-l to its partners,
				members, shareholders, or beneficiaries for the tax year.
d.
Consolidated corporate
				return.
The taxpayer elects or is required to file or be included on
				an Iowa consolidated corporate income tax return under Iowa Code section
				422.37 for the tax
				year.