Iowa Administrative Code

Iowa Code chapter 17A. These definitions apply to this chapter unless the text states otherwise: “Department” means the Iowa department of revenue. “Director” means the director of the department or the director’s designee. “GovConnectIowa” means the e-services portal of the depa…

3.3(1) Advice on possible rules before notice of proposed rule adoption. In addition to seeking information by other methods, the department may, before publication of a Notice of Intended Action under Iowa Code section 17A.4(1)“a,” solicit comments from the public on a subject m…

within the purview of this chapter are assigned a docket number that is the official identification number of the matter for the purposes of identification. The parties will be notified of the docket number. The number will be placed by the parties on all documents thereafter fil…

department maintains records in accordance with the State Records Manual and agency retention schedule described in rule 671—2.2(305). This rule is intended to implement Iowa Code section 17A.3. [ARC 8944C, IAB 2/19/25, effective 3/26/25]

3.6(1) Filing, form, and contents of petition. a. Filing. Any person or agency may file a petition for rulemaking using one of the methods described in subrule 7.3(1). b. Department forms. A petition may be filed using the form available on GovConnectIowa. Alternatively, a petiti…

provisions in a rule over which the department has jurisdiction, in whole or in part, may be subject to waiver. 3.7(1) Definitions. The following terms apply to the interpretation and application of this rule: “Discretionary rule” or “discretionary provisions in a rule” means rul…

300.1(1) When the word “department” appears herein, the word refers to and is synonymous with the “Iowa department of revenue”; the word “director” is the “director of revenue” or the director’s authorized assistants and employees. The administration of the individual income tax …

a cumulative inflation factor to be determined by the director. The requirement that provided that the state general fund balance on June 30 of the prior calendar year had to be $60 million or more before there was indexation of the tax rate brackets for the current year was repe…

Rescinded ARC 7192C, IAB 12/13/23, effective 1/17/24.

beginning on or after January 1, 1990, the optional standard deduction is indexed or increased by the cumulative standard deduction factor computed by the department of revenue. The cumulative standard deduction factor is the product of the annual standard deduction factor for th…

2002, the department of revenue may, when the action has been approved by the general assembly and the governor, and when it is cost-efficient, administratively feasible, and of mutual benefit to Iowa and another state, enter into a reciprocal tax agreement with a tax administrat…

Effective January 1, 1993, every person, every corporation, or agent of a person or corporation, lessees or mortgagors of real or personal property, fiduciaries, employers, and all officers and employees of the state or of any political subdivision of the state, having control, r…

substantial understatement of tax attributable to nonrequesting spouse or former spouse. Married or formerly married taxpayers are generally jointly and severally liable for the total tax, penalty, and interest from a joint return or from a return where the spouses file separatel…

employee can assist a taxpayer in the preparation and completion of the taxpayer’s individual income tax returns and other state tax returns during the employee’s hours of employment for the department in either of the following situations: 1. At the time the department employee …

prior Iowa individual income tax return. For tax years beginning on or after January 1, 1992, if a taxpayer repays in the current tax year an amount of income that had been reported on the taxpayer’s Iowa individual income tax return for a prior year that had been filed with the …

300.2(1) Periods of audit. a. The department has three years after a return has been filed or three years after the return became due, including any extensions of time for filing, whichever time is the later, to determine whether any additional tax other than that shown on the re…

300.3(1) Every individual subject to the tax imposed by Iowa Code section 422.5 (whether or not the individual incurs liability for the tax) and every withholding agent subject to the provisions of Iowa Code section 422.16 shall retain those books and records as required by Secti…

depends upon specific legislative acts, and only where there is a clear provision can any particular deduction be allowed. Therefore, a deduction will be allowed only if the taxpayer can establish the validity and correctness of such deduction. This rule is intended to implement …

300.5(1) A jeopardy assessment may be made in a case where a return has been filed, and the director believes for any reason that collection of the tax will be jeopardized by delay; or in a case where a taxpayer fails to file a return, whether or not formally called upon to do so…

generally to the director, deputies, auditors, agents, present or former officers and employees of the department. Disclosure of information from a taxpayer’s filed return or report or other confidential state information by department of revenue personnel to a third person is pr…

to authorized assistants and employees the power to examine returns and make audits; and to determine the correct amount of tax due, subject to review by or appeal to the director. This rule is intended to implement Iowa Code section 422.70. [Editorial change: IAC Supplement 11/2…

the collection of the tax required to be deducted and withheld or the amount actually deducted, whichever is greater, require an employer or withholding agent to file with the director a bond issued by a surety company authorized to conduct business in Iowa and approved by the in…

301.1(1) Residents of Iowa. a. Residents under 65 years of age. For each taxable year, every resident of Iowa, except any resident claimed as a dependent on another person’s return, whose net income is greater than $13,500 in the case of married persons, heads of household, and s…

in the next tax year. For tax years beginning on or after January 1, 1990, a taxpayer may elect to report excess income from the sale or exchange of livestock due to drought on the Iowa return for the next tax year if the taxpayer qualified for similar treatment of the excess inc…

the individual was killed outside the United States due to military or terroristic action. For tax years ending on or after August 2, 1990, an individual’s Iowa income tax is forgiven if the person’s federal income tax was forgiven because the individual was killed in a combat zo…

for certain other persons serving in support of those forces. 301.12(1) Extension of deadlines. a. Extension of certain deadlines for certain military personnel. (1) For tax years ending after August 2, 1990, the time period to file state income tax returns and to perform certain…

duty area. For tax years beginning on or after January 1, 1995, a number of state tax benefits are authorized for individuals serving in a location designated by the President and Congress as a qualified hazardous duty area or other persons serving in support of the individuals i…

301.15(1) Tax years beginning on or after January 1, 2007, but before January 1, 2009. A special tax computation is available for determining the state income tax liability for certain taxpayers, except single taxpayers described in subrule 301.4(1), who are 65 years of age or ol…

301.2(1) Returns of individuals. A 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 taxpayer’s taxable year, whether the return be made on the basis of the calendar year or for a fiscal year, or …

301.3(1) Use of and completeness of prescribed forms. Returns shall, in all cases, be made by residents and nonresidents on forms supplied by the department of revenue. Taxpayers not supplied with the proper forms shall make application for the forms to the department, in ample t…

301.4(1) Single taxpayers. The term “single person” includes, for income tax purposes, an unmarried person, a person legally separated under a decree of divorce or separate maintenance or any other person not properly classified under subrules 301.4(2) through 301.4(8). 301.4(2) …

301.5(1) Payment of tax for wage earners. Withholding of tax on wage earners is required under Iowa Code section 422.16. See 701—Chapter 307. 301.5(2) Payment of tax on income not subject to withholding. Those taxpayers with income not subject to withholding which will produce a …

Iowa Code section 422.5 provides that in addition to the tax computed on the taxable income, a tax shall also be imposed on the amount of a lump-sum distribution for which the taxpayer has elected under Section 402(e) of the Internal Revenue Code to be separately taxed for federa…

sale. Taxpayers whose net incomes include gains or losses from distressed sales may limit their state income tax liabilities for the tax years in which the distress sales occurred to their net worths immediately before the distressed sales. The state income tax liability of a tax…

tax years beginning on or after January 1, 1987, a special tax computation is available for determining the state income tax liability for all low-income taxpayers except single taxpayers described in subrule 301.4(1). Under this provision, the taxpayer multiplies the net income …

However, if a taxpayer claims this income tax exclusion, the same taxpayer cannot also claim the film qualified expenditure tax credit as described in rule 701—304.37(15,422). In addition, any taxpayer who claims this income tax exclusion cannot have an equity interest in a busin…

federal adjusted gross income as properly computed under the Internal Revenue Code and shall include the adjustments in 701—302.2(422) to 701—302.9(422). The remaining provisions of this rule and

701—302.12(422) Income from partnerships or limited liability companies. Residents engaged in a partnership or limited liability company, even if located or doing business outside the state of Iowa, are taxable upon their distributive share of net income of such partnership or li…

This rule is intended to implement Iowa Code section 422.7. [ARC 8605B, IAB 3/10/10, effective 4/14/10; ARC 9103B, IAB 9/22/10, effective 10/27/10; ARC 9820B, IAB 11/2/11, effective 12/7/11; Editorial change: IAC Supplement 11/2/22; Editorial change: IAC Supplement 10/18/23]

Internal Revenue Code, to distribute the corporation’s income to the shareholders, the corporation’s income, in its entirety, is subject to individual reporting whether or not actually distributed. Both resident and nonresident shareholders shall report their share of the corpora…

property and is assignable to the recipient’s domicile. Gains received from the sale or assignment of land contracts are considered to be gains from real property in this state and are assignable to this state. As to nonresidents, see 701—302.16(422). This rule is intended to imp…

to file separately for Iowa income tax purposes. Married taxpayers who have separate incomes and have filed jointly for federal income tax purposes can elect to file separate Iowa returns or to file separately on the combined Iowa return form. Where married persons file separatel…

nonresidents derived from sources within Iowa is subject to Iowa income tax. Net income received by a nonresident taxpayer from a business, trade, profession, or occupation in Iowa must be reported. Income from the sale of property, located in Iowa, including property used in con…

portion of the taxable year is subject to the following rules of taxation: 1. For that portion of the taxable year for which the taxpayer was a nonresident, the taxpayer shall allocate to Iowa only the income derived from sources within Iowa. 2. For that portion of the taxable ye…

or allowable for Iowa individual income tax purposes and will be computed using a method similar to the method used to compute losses allowed or allowable for federal income tax purposes. In determining the applicable amount of Iowa loss carrybacks and carryovers, the adjustments…

losses and may be carried back three years and forward seven years in the event said casualty losses exceed income in the loss year. This rule is intended to implement Iowa Code section 422.7. [Editorial change: IAC Supplement 11/2/22]

state is prohibited by federal law from taxing dividends from corporations owned or sponsored by the federal government, or interest derived from obligations of the United States and its possessions, agencies, and instrumentalities. Therefore, if the federal adjusted gross income…