Iowa Administrative Code

estimated tax. However, if taxpayers desire to make estimated payments, the estimated payments should be made on Form IA 1040ES using the partnership’s, S corporation’s, or trust’s identification number assigned by the department in lieu of the social security number. This rule i…

404.9(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 …

404.5(1) The director may require the filing of a composite return if the nonresident partners, shareholders, or beneficiaries do not file individual income tax returns and pay the tax due. 404.5(2) Where some of the nonresident partners, shareholders, or beneficiaries file indiv…

entity with one or more nonresident members for any period of time during the tax year shall file a composite return using the Iowa composite return (IA PTE-C) and pay Iowa income or franchise tax on behalf of all of its nonresident members, unless an exception in rule 701—405.5(…

and phrases used in this chapter that are defined under Iowa Code section 422.16B shall have the same meaning as provided to them under that Iowa Code section. For the purposes of this chapter: “Composite return” means the IA PTE-C Iowa composite return, which reports information…

405.3(1) Filing requirement. A pass-through entity that is required to file an Iowa partnership return (IA 1065), Iowa income tax return for S corporations (IA 1120S), or Iowa fiduciary return (IA 1041) and that has one or more nonresident members for any period of time during th…

who is a nonresident member under Iowa Code section 422.16B(1)“a”: 405.4(1) A partner, shareholder, or beneficiary of a pass-through entity shall be considered a nonresident member if any of the following were true for the entire period of time that person was a partner, sharehol…

405.5(1) Filing and payment exceptions for pass-through entities. Pass-through entities are not required to file a composite return or pay composite return tax if the entity meets any of the following conditions for the tax year: a. The pass-through entity is a publicly traded pa…

405.6(1) In general. A nonresident member may elect to be excluded from a pass-through entity’s composite return unless prohibited from doing so by the department under subrule 405.6(2). Electing out of the composite return only relieves the pass-through entity of the requirement…

405.7(1) Each nonresident member’s distributive share of Iowa-source income from the pass-through entity shall be determined at the entity level in accordance with the Iowa statutes, administrative rules, and tax forms applicable to the pass-through entity’s tax type, including p…

405.8(1) In general. Nonresident members included on a pass-through entity’s composite return may still have an Iowa return filing requirement. The nonresident member shall receive a refundable composite tax credit for the composite return tax paid on the nonresident member’s beh…

405.9(1) The department may require that a composite return be filed under this chapter for nonresidents who are not members of a pass-through entity. The requirement may be set forth in this chapter for a category of persons or may be made directly in writing by the department t…

“Confidential record” means a record that is not available as a matter of right for examination and copying by members of the public under applicable provisions of law. Confidential records include but are not limited to records or information contained in records that the depart…

department. The department collects and maintains both open records and confidential records that contain personally identifiable information. This rule describes the nature, extent, retrieval, storage, and processing of personally identifiable information within the department’s…

record has submitted a document to the department, the department will store the document in the same manner that it stores other records of a similar nature. Documents submitted to the department may be destroyed by the department at the conclusion of the applicable time period …

1. Mandate that the department index or retrieve records that contain information about an individual by that person’s name or other personal identifier. 2. Make available to the general public records that would otherwise not be available under Iowa Code chapter 22. 3. Govern th…

public access to open records and to facilitate sound department determinations with respect to the handling of confidential records and the implementation of Iowa Code section 22.11. This rule is intended to implement Iowa Code chapters 17A, 22, 99G, 123, and 421 through 454. [A…

5.3(1) Availability of records. Department records are open for public inspection and copying unless they are confidential or otherwise not subject to public inspection by rule or law. The department is not obligated to create a record if a requested record does not exist. 5.3(2)…

other applicable provisions of law, the lawful custodian may disclose certain confidential records to one or more members of the public. Other provisions of law authorize or require the custodian to release specified confidential records under certain circumstances or to particul…

withholding from examination. The department may treat a record as confidential and withhold it from examination only as authorized by Iowa Code sections 22.7, 99G.34, 123.38A, 422.20, and 422.72; other applicable provisions of law; or an order. 5.5(1) Requests related to records…

5.6(1) Consent to disclosure by a subject. To the extent permitted by law, the subject may consent in writing to department disclosure of confidential records as provided in rules 701—5.7(17A,22,421,422) and 701—7.6(17A,22,421,422). 5.6(2) Complaints to public officials not an au…

5.7(1) Powers authorized. A taxpayer may designate an individual to receive, inspect, and discuss the taxpayer’s confidential state tax information from the department. Such designation does not authorize the designee to act or authorize any action on the taxpayer’s behalf in any…

certain confidential records may be disclosed by the department without the consent of the subject. 5.8(1) Disclosure of nonconfidential records. All nonconfidential records may be disclosed without the consent of the subject. 5.8(2) Disclosure of confidential records that do not…

5.9(1) The subject of a record may request to review the subject’s own records by following the procedures in rules 701—5.3(17A,22,99G,123,421-454) and 701—5.4(17A,22,99G,123,421-454). However, the department need not release the following records to the subject: a. Communication…

500.1(1) When the word “department” appears herein, it 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 word “tax” is the “corporation income tax”; and th…

of each subsequent year, the department of management shall determine the net corporate income tax receipts for the preceding fiscal year and provide the amount determined to the department of revenue. If the net corporate income tax receipts for the preceding fiscal year exceed …

500.2(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…

500.3(1) Every corporation subject to the tax imposed by Iowa Code section 422.33 (whether or not the corporation incurs liability for the tax) shall retain its books and records as required by Section 6001 of the Internal Revenue Code and Treasury Regulation Section 1.6001-1(e) …

section 422.40 to file any report or return (including returns of information at source) or to pay any tax or fee, fails to do so within 90 days after the time prescribed for making such returns or payment, the director may certify such fact to the secretary of state, who shall t…

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 to the satisfaction of the department the validity and correctness of such deductio…

500.6(1) A jeopardy assessment may be made where a return has been filed and the director believes for any reason that collection of the tax will be jeopardized by delay, or where a taxpayer fails to file a return, whether or not formally called upon to file a return. The departm…

director, deputies, auditors, examiners, 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 prohibit…

director delegates to the 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 422.71. [Editorial chan…

This rule is intended to implement Iowa Code sections 15E.364 and 422.33(31) as enacted by 2021 Iowa Acts, House File 588, sections 1 and 3. [ARC 6267C, IAB 4/6/22, effective 5/11/22; Editorial change: IAC Supplement 11/2/22; Editorial change: IAC Supplement 10/18/23]

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…

programs approved after May 1, 1994, but before July 1, 2005, an investment tax credit under Iowa Code section 15.333 and an additional research activities credit under Iowa Code section 15.335 are available to an eligible business. The new jobs and income program was repealed on…

501.11(1) to 501.11(9) Reserved. 501.11(10) For refund claims received by the department after June 11, 1984. If the amount of tax is reduced as a result of a net operating loss or net capital loss, interest shall accrue on the refund resulting from the loss carryback beginning o…

501.12(1) Sequencing of credit deductions. The credits against computed tax set forth in Iowa Code sections 422.33 and 422.110 shall be claimed in the following sequence. a. Franchise tax credit. b. Alternative minimum tax credit (for tax years beginning during 2021 only). c. Qua…

credit refunds see rule 701—305.8(422). This rule is intended to implement 1996 Iowa Acts, chapter 1197, sections 19, 20, and 21. [Editorial change: IAC Supplement 11/2/22; Editorial change: IAC Supplement 10/18/23]

approved after July 1, 1997, but before July 1, 2014, a business which qualifies under the enterprise zone program is eligible to receive tax credits. The enterprise zone program was repealed on July 1, 2014. Any tax credits earned by businesses approved under the enterprise zone…

housing business may receive a tax credit of up to 10 percent of the new investment which is directly related to the building or rehabilitating of homes in an enterprise zone. The enterprise zone program was repealed on July 1, 2014, and the eligible housing business tax credit h…

of the Internal Revenue Code that has elected to have its income taxed directly to the shareholders may take a tax credit equal to the shareholder’s pro rata share of the Iowa franchise tax paid by the financial institution. 501.16(1) Credit calculation. a. The credit must be cal…

2000, a taxpayer who is a small business that purchases, rents, or modifies an assistive device or makes workplace modifications for an individual with a disability who is employed or will be employed by the taxpayer may qualify for an assistive device tax credit, subject to the …

projects with Part 2 applications approved and tax credits reserved prior to July 1, 2014. A historic preservation and cultural and entertainment district tax credit, subject to the availability of the credit, may be claimed against a taxpayer’s Iowa corporate income tax liabilit…

January 1, 2002, an ethanol blended gasoline tax credit may be claimed against a taxpayer’s corporation income tax liability for retail dealers of gasoline. The taxpayer must operate at least one retail motor fuel site at which more than 60 percent of the total gallons of gasolin…

501.2(1) Returns of corporations. A return of income for all corporations must be filed on or before the due date. The due date for all corporations except for cooperative associations as defined in Section 6072(d) of the Internal Revenue Code is the last day of the fourth month …

beginning on or after January 1, 2001, a business which qualifies as an eligible development business may receive a tax credit of up to 10 percent of the new investment which is directly related to the construction, expansion or rehabilitation of building space to be used for man…

501.21(1) Investment tax credit for an equity investment in a community-based seed capital fund or qualifying business. a. Equity investments in a qualifying business or community-based seed capital fund before January 1, 2011. See rule 123—2.1(15E) for the discussion of the inve…

or after January 1, 2003, a business which qualifies under the new capital investment program is eligible to receive tax credits. An eligible business under the new capital investment program must be approved by the Iowa department of economic development and meet the qualificati…