Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 19 - Settlements-compromises and Abatements of Tax, Penalty, or Interest › Rule 701-19.6 - Voluntary Disclosure Agreements

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
When to
				file.
Any person who is subject to Iowa tax or tax collection
				responsibilities may be eligible for the voluntary disclosure program. Being
				subject to Iowa tax may occur when a person has Iowa source income, business
				activities, or representatives or other presence in Iowa. Certain activities by
				such persons may create Iowa tax return filing requirements for Iowa source
				income. In addition, activities may also result in tax liabilities that are
				past due and owing.
(2)
Purpose of the voluntary disclosure program.
The purpose of
				the voluntary disclosure program is to promote effective tax administration
				through voluntary compliance by encouraging unregistered business entities and
				persons to voluntarily contact the department regarding unreported Iowa source
				income or other Iowa taxes described in subrule 19.6(4).
(3)
Anonymity.
A person or
				the person's representative may initially contact the department on an
				anonymous basis. Anonymity of the taxpayer can be maintained until the
				voluntary disclosure agreement is executed by the taxpayer and the department.
				The voluntary disclosure program may be used by the department and the taxpayer
				to report previous periods of Iowa source income and to settle outstanding tax,
				penalty and interest liabilities, but it must also ensure future tax compliance
				by the taxpayer.
(4)
Type
				of taxes eligible.
Only taxes, penalties, and interest related to the
				following tax types are eligible for settlement under the voluntary disclosure
				program: corporate income tax, franchise tax, fiduciary income tax, withholding
				income tax, individual income tax, composite return tax, local option school
				district income surtax, state sales tax, state use tax, fuel taxes, cigarette
				and tobacco taxes, local option tax, state and local hotel and motel taxes,
				automobile rental excise tax, equipment excise tax, water service excise tax,
				and the prepaid wireless 911 surcharge.
(5)
Eligibility of the
				taxpayer.
The department has discretion to determine who is eligible
				for participation in the voluntary disclosure program. In making the
				determination, the department may consider the following factors:
a. The person must be subject to Iowa tax on
				Iowa source income or have Iowa tax collection responsibilities;
b. The person must have tax due;
c. The person must not currently be under
				audit or examination by the department or under criminal investigation by the
				department;
d. The person must not
				have had any prior contact with the department or a representative of the
				department that could lead to audit or assessment associated with the tax types
				or tax periods sought to be addressed under the program;
e. The type and extent of activities
				resulting in Iowa source income;
f.
				Failure to report the Iowa source income or pay any liability was not due to
				fraud, intentional misrepresentation, an intent to evade tax, or willful
				disregard of Iowa tax laws; and
g.
				Any other factors which are relevant to the particular situation.