Iowa Administrative Code

expense fund and the amount of any loan, the director shall consider the following factors: 1. The amount of moneys presently on hand and not encumbered or intended for another purpose in both the assessment expense fund and the special appraisal fund. 2. When the assessing juris…

to the department pursuant to Iowa Code section 17A.10 and notwithstanding Iowa Code section 7D.9, the department may, in its sole discretion, settle any taxes, penalties, or interest. A settlement may be a compromise or full abatement of any amount in dispute. [ARC 7192C, IAB 12…

section 421.5, the amount must be of doubtful liability or doubtful collectability or must cause severe economic hardship, or the settlement of the amount must promote effective tax administration. The decision whether to accept a settlement amount will be based on a taxpayer’s f…

19.3(1) Whether to seek a settlement. When determining whether to seek a settlement, a taxpayer should first consider whether a settlement is necessary. Nothing in this chapter is intended to preclude a taxpayer who misses the time provided by law to appeal a notice of assessment…

19.4(1) When to file. Abatement is intended to be a possible remedy for taxpayers who have received a billing or refund denial letter and have information that could lead to a reduction in the liability, but failed to file a timely appeal. Grounds for abatement include doubt as t…

19.5(1) When to file. An offer in compromise packet should be used to apply for relief based on doubtful collectability or severe economic hardship. 19.5(2) How to submit a packet. To apply, a taxpayer must submit an offer in compromise packet in the department’s prescribed paper…

19.6(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…

department of revenue to be administered by a director of revenue with primary responsibility for revenue collection and revenue law compliance, as well as administration of the Iowa lottery and alcoholic beverage control. [ARC 8944C, IAB 2/19/25, effective 3/26/25]

collection and generation of revenue to support the public good. [ARC 8944C, IAB 2/19/25, effective 3/26/25]

Hoover State Office Building, 1305 East Walnut Street, P.O. Box 10460, Des Moines, Iowa 50319. Office hours of the department are 8 a.m. to 4:30 p.m., Monday through Friday. Offices are closed on Saturdays, Sundays, and official state holidays designated in accordance with state …

2.4(1) Main website of the department. The department’s main Internet home page is revenue.iowa.gov. 2.4(2) Website of lottery division. The lottery division’s Internet home page is www.ialottery.com. Information regarding the lottery’s main and regional offices can be obtained o…

division, and other such divisions as the director may from time to time establish, abolish, or consolidate. 2.5(1) The office of the director. The essential functions of the office of the director include but are not limited to: a. Overall management of the agency. b. Review of …

unless the context otherwise requires: “Assessment issued” means the same as defined in Iowa Code section 422.26(10). “Charge off” means moving an unpaid account to inactive status. “Charge off” does not mean the account is deleted from the department’s records or that the accoun…

20.2(1) A notice of lien may be filed in the office of the recorder in any county. 20.2(2) The director may charge off any account before the lien has lapsed if the taxpayer meets one or more of the following criteria: a. The taxpayer is deceased, and there are no assets in the e…

20.3(1) Pursuant to Iowa Code sections 422.26(1) and 331.604, a fee of $20 will be added to the unpaid liability of the taxpayer at the time the lien is filed. If two or more pages are required for the lien, an additional fee of $5 per page will be added to the unpaid liability o…

201.1(1) Permit requirement. A person shall not make taxable sales of tangible property, specified digital products, or services until the person has received a permit from the department. 201.1(2) Purchases subject to use tax. A person liable for use tax under Iowa Code section …

201.11(1) Substantial delinquency of tax. The department may revoke a permit if the permit holder has become substantially delinquent in paying any tax that is administered by the department or the interest or penalty on the tax. The department will consider the nonexclusive fact…

201.12(1) If a taxpayer’s permit is revoked, the taxpayer may apply for a new permit. The new permit application will be granted or denied based on terms and conditions set forth by the department. Terms and conditions include payment of any tax liability that may be due to the d…

verification by the department that the permit is no longer in use. This rule is intended to implement Iowa Code section 421.17(37). [ARC 8150C, IAB 7/24/24, effective 8/28/24] [Filed Emergency ARC 6398C, IAB 7/13/22, effective 7/1/22] [Editorial change: IAC Supplement 10/18/23] …

201.2(1) Permit application. a. An application for a sales and use tax permit shall be made via GovConnectIowa or by other means prescribed by the department, and the applicant shall furnish all information requested on such form. An application for a permit for a business operat…

tangible personal property or a specified digital product that is exempt from tax, making nontaxable transactions, or performing a service that is not enumerated in Iowa Code section 423.2 shall not be required to obtain a sales tax permit. However, if the retailer makes taxable …

previously held and canceled a permit who wishes to re-engage in business shall apply to the department for a new permit and file any previously unfiled tax returns. Upon receipt of the proper clearance for previous tax returns, a new permit may be issued if the relevant persons …

of a business holding a permit that sells the business shall cancel the permit, and the purchaser of the business shall apply for a new permit in the purchaser’s own name. This rule is intended to implement Iowa Code section 423.36. [ARC 8150C, IAB 7/24/24, effective 8/28/24]

update its address with the department via GovConnectIowa or the form prescribed by the department. A business changing its location outside of the same county shall cancel its original permit and apply for a new permit. If a business does not have a stationary location, the busi…

201.7(1) Change of business entity. A retailer changing its business entity shall apply for a new permit under the name of the new entity. This includes but is not limited to such entity changes as proprietorship to partnership, partnership to corporation, or any combination ther…

201.8(1) Change to legal name. A retailer changing its legal name but maintaining its ownership may continue to use its existing sales and use tax permit. The retailer shall notify the department of the change in legal name and shall provide any form of documentation requested by…

trustees, receivers, executors and administrators who continue to operate, manage or control a business involving the sale of tangible personal property, specified digital products, or taxable services or engage in liquidating the assets of a business by means of sales made in th…

202.1(1) In general. A retailer owing $1,200 or more in sales or use tax per calendar year shall file a sales and use tax return once per month. This monthly return is due on or before the last day of the month following the end of the month in which the tax was collected. A reta…

machines on location shall file a return that includes the sales price from sales from all machines or devices operated by the retailer in Iowa during the tax period covered by the return. The mandatory beverage container deposit required under the provisions of Iowa Code chapter…

202.11(1) Eligibility for refund; filing claims. Refunds of tax shall be made only to those who have actually paid the tax. A person or persons may designate the retailer who collects the tax as an agent for purposes of receiving a refund of tax. A person or persons who claim a r…

paid, Iowa Code section 423.33(2) applies to a retailer selling the retailer’s business or stock of goods or ceasing the retailer’s business and the immediate successor. For the purpose of this rule, “retailer” includes all persons liable for tax under Iowa Code sections 421.26 a…

fails to pay sales tax when due, any officer of a corporation or association, or any partner of a partnership, who has control of, supervision of, or the authority for remitting the sales tax payments and has a substantial legal or equitable interest in the ownership of the corpo…

202.14(1) Equal or greater tax paid to another state. When a person has already paid to any other state of the United States a state sales, use, or occupational tax on specifically identified tangible personal property or taxable services on its sale or use, prior to bringing the…

contract basis. A retailer shall report and remit to the department the full amount of tax computed on the full sale price on the return for the tax period during which the sale was made. This rule is intended to implement Iowa Code sections 423.1 and 423.2. [ARC 7714C, IAB 3/6/2…

registered retailer repossessing tangible personal property that has been sold on a conditional sale contract basis and remitting use tax to the department on the full purchase price may take a deduction on the retailer’s sales and use tax return for the tax period in which the g…

secures an allowance or a return of the full purchase price, the seller may deduct the amount allowed as full credit or refund, provided the merchandise is taxable merchandise and tax has been previously paid on the sales price. No allowance is to be made for the return of any me…

202.18(1) When requested to do so by any person having a legitimate interest in such information, the department shall, after being presented with sufficient proof of the entire situation, disclose to the person the amount of unpaid sales or use taxes due by a taxpayer. The perso…

the collection of the tax, require any person subject to the tax to file with the department a bond in an amount as the director may fix or, in lieu of the bond, securities approved by the director in an amount as the director may prescribe. Pursuant to Iowa Code section 423.35, …

or use tax but not both shall affirmatively indicate on the sales and use tax return that the taxpayer has no tax to report for the appropriate tax type. A taxpayer does this by making the appropriate indication on an electronic return or by entering a zero on the taxable amount …

with rule 701—11.3(321,421,423,452A,453A) include but are not limited to the following: 202.20(1) A daily record of the amount of all cash and time payments and credit sales. 202.20(2) A record of the amount of all merchandise purchased and of all services performed for a taxpaye…

sales and use tax return for the period in which the tax became due. Retailers filing a monthly sales and use tax return electronically shall remit tax electronically. Retailers filing a paper return may remit tax by mail, payable to the Iowa Department of Revenue. Remittances tr…

holiday shall be treated in accordance with Iowa Code section 421.9A. Iowa Code section 421.9A contains a definition of “holiday.” This rule is intended to implement Iowa Code section 421.9A. [ARC 7714C, IAB 3/6/24, effective 4/10/24]

consolidated return. The first is a permit holder with multiple locations from which taxable sales are made, and the second is certain affiliated corporations. 202.5(1) Permit holders with multiple locations. A permit holder procuring more than one permit may file a separate retu…

202.6(1) Direct pay permits in general. Qualified purchasers, users, and consumers of tangible personal property, specified digital products, or taxable services pursuant to Iowa Code chapter 423 may remit tax owed directly to the department instead of having the tax collected an…

by selling merchandise by trucks, canvassers, or itinerant salespeople over fixed routes within the county in which the permanent place of business is located or other counties in this state. When this occurs, the permit holder is liable for reporting and paying tax on these sale…

202.8(1) Final return due. A retailer selling the business shall file a return within the succeeding month and pay all tax due. Any unpaid tax shall be due prior to the transfer of title of any personal property to the purchaser, and the tax becomes delinquent one month after the…

insolvency or assignment for the benefit of creditors by the taxpayer, the taxpayer shall immediately file a return with the tax being due. This rule is intended to implement Iowa Code section 423.31. [ARC 7714C, IAB 3/6/24, effective 4/10/24]

displays or advertises the same to the public with that price marked, the price so marked or advertised shall include only the sales price of such article unless it is stated on the price tag that the price includes tax. Example: The advertised or marked price is $1. When a sale …

credit or under installment contracts are not subject to sales tax when such charges are separately stated and when such charges are in addition to an established cash sales price. However, if finance charges are not separately stated and a sale is made for a lump sum amount, the…

203.3(1) Retailers’ discounts. A retailer’s discount reduces the retailer’s price of a property or service with the remainder being the actual sales price of the goods charged in the account. The purchaser entitled to the discount will never owe the retailer’s price as a debt, th…