Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.1 - Who Must File

Current through Register Vol. 47, No. 3, July 24, 2024
Every corporation, organized under the laws of Iowa or
				  qualified to do business within this state or doing business within Iowa,
				  regardless of net income, shall file a true and accurate return of its income
				  or loss for the taxable period. The return shall be signed by the president or
				  other duly authorized officer. If the corporation was inactive or not doing
				  business within Iowa, although qualified to do so, during the taxable year, the
				  return must contain a statement to that effect.
For tax years beginning on or after January 1, 1989, every
				  corporation organized under the laws of Iowa, doing business within Iowa, or
				  deriving income from sources consisting of real or tangible property located or
				  having a situs within Iowa, shall file a true and accurate return of its income
				  or loss for the taxable period. The return shall be signed by the president or
				  other duly authorized officer.
For tax years beginning on or after January 1, 1995, every
				  corporation organized under the laws of Iowa, doing business within Iowa, or
				  deriving income from sources consisting of real, tangible, or intangible
				  property located or having a situs within Iowa, shall file a true and accurate
				  return of its income or loss for the taxable period. The return shall be signed
				  by the president or other duly authorized officer. For tax years beginning on
				  or after January 1, 1999, every corporation doing business within Iowa, or
				  deriving income from sources consisting of real, tangible, or intangible
				  property located or having a situs within Iowa, shall file a true and accurate
				  return of its income or loss for the taxable period. The return shall be signed
				  by the president or other duly authorized officer.
Political organizations described in Internal Revenue Code
				  Section 527 which are domiciled in this state and are required to file federal
				  Form 1120POL and pay federal corporation income tax are subject to Iowa
				  corporation income tax to the same extent as they are subject to federal
				  corporation income tax.
Homeowners associations described in Internal Revenue Code
				  Section 528 which are domiciled in this state and are required to file federal
				  Form 1120H and pay federal corporation income tax are subject to Iowa
				  corporation income tax to the same extent as they are subject to federal
				  corporation income tax.
(1)
Definitions.
a.
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 corporation organized for profit and carrying out any of
				the purposes of its organization shall be deemed to be "doing business." In
				determining whether a corporation is doing business, it is immaterial whether
				its activities actually result in a profit or loss.
b.
Representative.
A person
				may be considered a representative even though that person may not be
				considered an employee for other purposes such as withholding of income tax
				from commissions.
c.
Tangible property having a situs within this state.
The term
				"tangible property having a situs within this state" means that tangible
				property owned or used by a foreign corporation is habitually present in Iowa
				or it maintains a fixed and regular route through Iowa sufficient so that Iowa
				could constitutionally under the 14th Amendment and Commerce Clause of the
				United States Constitution impose an apportioned ad valorem tax on the
				property.
Central R. Co. v. Pennsylvania,
370 U.S.
				607,
				82 S.Ct. 1297, 8 L.Ed.2d (1962);
New York Central & H. Railroad Co. v. Miller,
202 U.S.
				584,
				26 S.Ct. 714, 50 L.Ed. 1155
				(1906);
American Refrigerator Transit Company v. State Tax
				Commission,
395 P.2d 127 (Or. 1964);
Upper Missouri River
				Corporation v. Board of Review,
Woodbury County, 210 N.W.2d
				828.
d.
Intangible property
				located or having a situs within Iowa.
Intangible property does not
				have a situs in the physical sense in any particular place.
Wheeling
				Steel Corporation v. Fox,
298 U.S.
				193,
				80 L.Ed. 1143, 56 S.Ct. 773
				(1936);
McNamara v. George Engine Company, Inc.,
519 So.2d 217
				(La. App. 1988). The term "intangible property located or having a situs within
				Iowa" means generally that the intangible property belongs to a corporation
				with its commercial domicile in Iowa or, regardless of where the corporation
				which owns the intangible property has its commercial domicile, the intangible
				property has become an integral part of some business activity occurring
				regularly in Iowa.
Beidler v. South Carolina Tax Commission,
282 U.S.
				1,
				75 L.Ed. 131, 51 S.Ct. 54 (1930);
Geoffrey, Inc. v. South Carolina Tax Commission,
437 S.E.2d 13
				(S.C. 1993), cert. denied, 114 S.Ct. 550 (1993);
Kmart Properties, Inc.
				v. Taxation & Revenue Department of New Mexico,
131 P. 3d 27 (N.M.
				Ct. App. 2001), rev'd on other issues, 131 P. 3d 22 (N.M. 2005);
Secretary, Department of Revenue v. Gap (Apparel), Inc.,
886
				So. 2d 459 (La.Ct.App. 2004);
A & F Trademark v. Tolson,
605 S.E. 2d 187 (N.C.App. 2004), cert. denied 126 S.Ct. 353 (2005);
Lanco, Inc. v. Director, Division of Taxation,
879 A.2d 1234
				(N.J.Super.A.D. 2005), aff'd, 908 A.2d 176 (N.J. 2006) (per curiam), cert.
				denied 127 S.Ct. 2974 (June 18, 2007);
Geoffrey, Inc. v. Oklahoma Tax
				Commission,
132 P. 3d 632 (Okla. Ct. Civ. App. 2005), cert. denied
				(Mar. 20, 2006), as corrected (Apr. 12, 2006);
FIA Card Services, Inc.
				v. Tax Comm'r,
640 S.E.2d 226 (W. Va. 2006), cert. denied, 127 S.Ct.
				2997 (June 18, 2007);
Capital One Bank v. Commissioner of
				Revenue,
899 N.E.2d 76 (Mass. 2009);
Geoffrey, Inc. v.
				Commissioner of Revenue,
899 N.E.2d 87 (Mass. 2009);
KFC
				Corporation v. Iowa Department of Revenue,
792 N.W. 2d 308 (Iowa
				2010), cert. denied 132 S. Ct. 97 (October 3, 2011). The following is a
				noninclusive list of types of intangible property: copyrights, patents,
				processes, trademarks, trade names, franchises, contracts, bank deposits
				including certificates of deposit, repurchase agreements, mortgage loans,
				consumer loans, business loans, shares of stocks, bonds, licenses, partnership
				interests including limited partnership interests, leaseholds, money, evidences
				of an interest in property, evidences of debts such as credit card debt,
				leases, an undivided interest in a loan, rights-of-way, and interests in
				trusts.
The term also includes every foreign corporation which has
				  acquired a commercial domicile in Iowa and whose property has not acquired a
				  constitutional tax situs outside of Iowa.