Iowa Administrative Code › Agency 701 - Revenue Department › Title II - Property Tax › Chapter 150 - Federal Offset for Iowa Income Tax Obligations › Rule 701-150.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
The following definitions are applicable to the federal
				  offset program:
"Assessment"
means the determination of a
				  past due tax obligation and includes self-assessments. An assessment includes
				  the Iowa income tax, interest, penalties, fees or other charges associated with
				  the past due legally enforceable Iowa income tax obligation.
"Department," "state of Iowa," "Iowa"
or
"the state"
means the Iowa department of revenue.
"Director"
means the director of the Iowa
				  department of revenue.
"Overpayment"
means a federal tax refund due
				  and owing to a person or persons.
"Past due legally enforceable Iowa income tax
				  obligation"
means a debt which resulted from a judgment rendered by a
				  court of competent jurisdiction which has determined an amount of state income
				  tax to be due or a determination after an administrative hearing which has
				  determined an amount of state income tax to be due and which is no longer
				  subject to judicial review. In addition, this term also includes a debt which
				  resulted from a state income tax which has been assessed but not collected, for
				  which the time for redetermination has expired, and which has not been
				  delinquent for more than ten years.
"Resident of Iowa"
means any person with a
				  federal overpayment for the year in which Iowa seeks offset and such person has
				  an Iowa address listed on that person's federal return for the tax period of
				  overpayment.
"Secretary"
means the Secretary of the
				  Treasury for the federal government.
"State income tax obligation"
or
"Iowa income tax obligation"
is intended to cover all Iowa
				  income taxes. This term includes all local income taxes administered by the
				  Iowa department of revenue or determined to be a "state income tax" under Iowa
				  law. Such taxes may include, but are not limited to, individual income tax,
				  income surtax, fiduciary income tax, withholding tax, or corporate income tax,
				  and penalties, interest, fines, judgments, or court costs relating to such tax
				  obligations.
"Tax refund offset"
means withholding or
				  reducing, in whole or in part, a federal tax refund payment by an amount
				  necessary to satisfy a past due legally enforceable state income tax obligation
				  owed by the payee (taxpayer) of the tax refund payment. This rule only involves
				  the offset of tax refund payments under
				  26 U.S.C.
				  6402(e); it does not cover the offset of
				  federal payments other than tax refund payments for the collection of past due
				  legally enforceable state income tax obligations.
"Tax refund payment"
means the amount to be
				  refunded to a taxpayer by the federal government after the Internal Revenue
				  Service (IRS) has applied the taxpayer's overpayment to the taxpayer's past due
				  tax liabilities in accordance with
				  26 U.S.C.
				  6402(a) and 26 CFR
				  301.6402-3(a)(6)(i).