Iowa Administrative Code › Agency 701 - Revenue Department › Title V - Pass-through Entity Income Tax › Chapter 404 - Composite Returns for Tax Years Beginning Prior to January 1, 2022 › Rule 701-404.9 - Time and Place for Filing

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A
				composite return of income must be filed on or before the due date. The due
				date is the last day of the fourth month following the close of the tax year of
				the partners, shareholders, employees, beneficiaries, estates or trusts
				included in the composite return, or the last day of the period covered by an
				extension of time granted by the department. When the due date falls on a
				Saturday, Sunday, or holiday, the composite return is due the following day
				that is not a Saturday, Sunday, or holiday. Iowa Code section
				421.9A contains additional
				information on due dates that fall on a Saturday, Sunday, or holiday. If a
				return is placed in the mail, properly addressed, postage paid, and postmarked
				on or before the due date for filing, no penalty will attach should the return
				not be received until after that date. Mailed returns should be addressed to
				Composite Return Processing, Department of Revenue, P.O. Box 10469, Des Moines,
				Iowa 50306.
(2) Extension of time
				for filing composite returns. If at least 90 percent of the tax required to be
				shown due has been paid by the due date and no return was filed 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 Tax Voucher form. This form
				can be requested from the Taxpayer Services Section, P.O. Box 10457, Des
				Moines, Iowa 50306, or by telephone at (515)281-3114.
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 and minimum tax. The tax
				  credits applicable are the credits set out in Iowa Code chapter 422, division
				  II, and section 422.111.
If the aggregate of the tax credits and the tax payments are
				  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.
Any tax elections, such as the election to carry forward a
				  net operating loss occurring in the tax year, 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.
This rule is intended to implement Iowa Code section
				  422.13.