Iowa Administrative Code

502.23(1) In general. Iowa taxpayers that elect to expense certain depreciable business assets in the year the assets were placed in service under section 179 of the Internal Revenue Code must also expense those same assets for Iowa income tax purposes in that year. However, for …

conversion of property due to eminent domain. For tax years beginning on or after January 1, 2006, a taxpayer may exclude the amount of ordinary or capital gain income realized as a result of the involuntary conversion of property due to eminent domain for Iowa corporation income…

or services directly related to production of film, television, or video projects. 502.25(1) Projects registered on or after January 1, 2007, but before July 1, 2009. For tax years beginning on or after January 1, 2007, a taxpayer that is an Iowa-based business may exclude, to th…

included in federal taxable income, the amount of the biodiesel production refund described in rule 701—277.1(423). This rule is intended to implement Iowa Code section 422.35. [ARC 9821B, IAB 11/2/11, effective 12/7/11; ARC 5915C, IAB 9/22/21, effective 10/27/21; Editorial chang…

before tax periods beginning on or after January 1, 2020. 502.27(1) In general. Public Law 115-97, Section 13303, repealed the deferral of gain or loss from exchanges of like-kind personal property for federal purposes under Section 1031 of the Internal Revenue Code. This federal…

502.28(1) Broadband infrastructure grant exemption, generally. For tax years beginning on or after January 1, 2019, certain qualifying communications service providers may subtract, to the extent included in income, the amount of qualifying government grants used to install broad…

1, 2020, the limit on the amount of business interest expense that a taxpayer may deduct in a taxable year under Internal Revenue Code (IRC) Section 163(j) does not apply for Iowa purposes. This rule provides information on how taxpayers must calculate and report their business i…

502.3(1) Capital losses shall be allowed or allowable for Iowa corporation income tax purposes to the same extent they are allowed or allowable for federal corporation income tax purposes. Capital loss carrybacks shall be treated as an adjustment to federal taxable income to arri…

502.30(1) Definitions. For purposes of this rule: “Administering agency” means the economic development authority, the Iowa finance authority, or the department of agriculture and land stewardship. “Grant recipient” means a person who applies for and is issued a qualifying COVID-…

periods beginning prior to January 1, 2009, has both a net operating loss and a capital loss carryback to a prior tax year, the capital loss shall be carried back first and then the new operating loss offset against any remaining income. This rule is intended to implement Iowa Co…

discussion of the exempt status of interest and dividends from federal securities. This rule is intended to implement Iowa Code section 422.35. [Editorial change: IAC Supplement 11/2/22; Editorial change: IAC Supplement 10/18/23]

political subdivisions. Interest and dividends from foreign securities and from securities of state and their political subdivisions are to be included in Iowa taxable income. Certain types of interest and dividends, because of specific exemption, are not includable in income for…

determining federal taxable income for sale-leaseback agreements taken as a result of the application of Section 168(f)(8) of the Internal Revenue Code shall be added in determining Iowa taxable income to the extent such deductions cannot be taken under provisions of Sections 162…

502.8(1) Reserved. 502.8(2) Percentage depletion. For tax years beginning on or after January 1, 1986, add the amount that percentage depletion of an oil, gas, or geothermal well computed under Section 613 of the Internal Revenue Code is in excess of cost depletion computed under…

acquired prior to January 1, 1934, the basis as of January 1, 1934, for determining capital or other gains or losses is the higher of cost, adjusted for depreciation allowed or allowable to January 1, 1934, or fair market value as of that date. City National Bank of Clinton v. Io…

incorporated under the laws of Iowa and upon every foreign corporation doing business in Iowa. For tax years beginning on or after January 1, 1999, Iowa Code section 422.33 imposes a tax on all corporations doing business in Iowa. For corporations or other entities subject to the…

503.2(1) Investment business income. The classification of investment income by the labels customarily given them, such as interest, dividends, rents, and royalties, is of no aid in determining whether that income is business or nonbusiness income. Interest, dividends, rents, roy…

tax periods beginning on or after January 1, 1978. Rule 701—503.2(422) deals with the separation of “net” income; therefore, determination and application of related expenses must be made, as hereinafter directed, before allocation and apportionment within and without Iowa. Relat…

a capital gain or loss shall mean the sale price or value at the time of disposal of an asset less the adjusted basis, whether reportable as short-term or long-term capital gain or ordinary income for federal income tax purposes. Nonbusiness gain or loss from the sale, exchange o…

property. The law specifically provides but one method for apportioning net income derived from the manufacture or sale of tangible personal property. The part of such income attributable to business within the state shall be that proportion which the gross sales made within the …

of tangible personal property. Income derived from business other than the manufacture or sale of tangible personal property shall be attributed to Iowa in the proportion which the Iowa gross receipts bear to the total gross receipts. Gross receipts are includable in the numerato…

utilities corporations. Net income of these corporations, other than interest, dividends, rents and royalties, which is not specifically allocated by 701—503.2(422) and 701—503.6(422) shall be apportioned as follows: 503.7(1) Railroads shall determine their Iowa proportion of gro…

within a single corporate structure. Net income from corporations where more than one business activity is conducted within a single unitary corporate structure shall be apportioned by combining gross receipts or gross revenues of each business activity in the business activity r…

allocation and apportionment method as prescribed by Iowa Code subsection 422.33(2), or 701— Chapter 503, in the taxpayer’s case results in an injustice, the taxpayer may petition the department for permission to determine the taxable net income, both allocable and apportionable,…

504.1(1) Notice of adjustment. An employee of the department, designated by the director to examine returns and make audits, who discovers discrepancies in returns or learns that the income of the taxpayer may not have been listed, in whole or in part, or that no return was filed…

is reached, and the taxpayer does not pay the amount determined to be correct, a notice of assessment shall be sent to the taxpayer by mail. If the period in which the correct amount of tax can be determined is nearly at an end, either a notice of assessment, without compliance w…

taxpayer deposits or payments for tax in excess of amounts legally due. 504.3(1) A claim for refund of corporation income tax may be made on a form obtainable from the department. Claims for refund should not be mailed in the same envelope or attached to the return. In the case o…

[Filed 12/12/74] [Filed 9/18/78, Notice 7/26/78—published 10/18/78, effective 11/22/78] [Filed emergency 3/2/79—published 3/21/79, effective 3/2/79] [Filed 12/7/79, Notice 10/31/79—published 12/26/79, effective 1/30/80] [Filed emergency 7/17/80—published 8/6/80, effective 7/17/80…

505.1(1) General rule. Every corporate taxpayer, including both domiciliary and nondomiciliary corporations, shall pay estimated tax if the amount of tax payable, less credits, can reasonably be expected to be more than $1,000 for the calendar or fiscal year. The amount of estima…

505.2(1) Time for filing. a. General rule. The date for filing the first estimated tax payment is on or before the last day of the fourth month of the tax year. The estimated tax form is to be filed with Corporate Estimate Processing, P.O. Box 10466, Des Moines, Iowa 50306. b. Am…

505.3(1) Short taxable year. A corporation having a taxable year of less than 12 months shall pay estimated tax if anticipating an Iowa tax liability of more than $1,000 for that short taxable year. a. Short taxable year where a new corporation first commences doing business. In …

receive by mail a preaddressed reporting form unless requirements for electronic transmission of installments are met. Blank reporting forms are available from the department for those making an estimate for the first time, or when the preaddressed form is misplaced or lost. This…

505.5(1) Underpayment penalty. a. A penalty is imposed for underpayment of the estimated tax by the taxpayer. This underpayment penalty is imposed whether or not there was reasonable cause for the underpayment. The Iowa penalty for underpayment of estimated tax is computed on For…

505.6(1) Refund of overpayment of estimated tax. Any overpayment of estimated tax, at the taxpayer’s election, of $5 or more will be refunded with interest without a claim for refund being filed. If the overpayment is less than $5, it will be refunded only if the taxpayer files a…

conducted pursuant to the department’s authority under Iowa Code chapter 99G or 123. [ARC 8944C, IAB 2/19/25, effective 3/26/25]

6.10(1) Pleadings. Pleadings may be required by rule, by the notice of hearing, or by order of the presiding officer. 6.10(2) Alcohol-related hearing complaint. a. The department, a local authority having jurisdiction, or the department of public safety may give written notice of…

6.11(1) When service required. Except where otherwise provided by law, every pleading, motion, document, or other paper filed in a contested case proceeding and every paper relating to discovery in such a proceeding shall be served upon each of the parties of record to the procee…

6.12(1) Discovery procedures. Discovery procedures applicable in civil actions are applicable in contested cases. Unless lengthened or shortened by these rules or by order of the presiding officer, time periods for compliance with discovery shall be as provided in the Iowa Rules …

6.13(1) Issuance. a. Department subpoenas. A department subpoena shall be issued to a party on request. Subpoenas may compel the attendance of witnesses at deposition or hearing and the production of books, papers, records, and other real evidence unless they are otherwise expres…

6.14(1) Prehearing motions. No technical form for motions is required. However, prehearing motions must be in writing, state the grounds for relief, and state the relief sought. 6.14(2) Written responses. Any party may file a written response to a motion within ten days after the…

701—7.17(17A). [ARC 8944C, IAB 2/19/25, effective 3/26/25]

made to the presiding officer. 6.16(1) Application for continuance. A written application for a continuance should: a. Be made at the earliest possible time and no less than three days before the hearing, except for a good cause showing; b. State the specific reasons for the requ…

that request prior to the hearing. [ARC 8944C, IAB 2/19/25, effective 3/26/25]

6.18(1) Motion. A motion for leave to intervene in a contested case proceeding states the grounds for the proposed intervention, the position and interest of the proposed intervenor, and the possible impact of intervention on the proceeding. A proposed answer or petition in inter…

6.19(1) Role of presiding officer. The presiding officer presides at the hearing and may rule on motions, require briefs, issue a proposed decision, and issue such orders and rulings as will ensure the orderly conduct of the proceedings. 6.19(2) Objections. All objections shall b…

“Contested case” means a proceeding defined by Iowa Code section 17A.2(5) and includes any matter defined as a no factual dispute contested case pursuant to Iowa Code section 17A.10A. “Department” means the Iowa department of revenue. “Director” means the director of the departme…

6.20(1) Admissibility. The presiding officer rules on admissibility of evidence and may, where appropriate, take official notice of facts in accordance with all applicable requirements of law. 6.20(2) Stipulation of facts. Stipulation of facts is encouraged. The presiding officer…

701—subrule 7.18(7). [ARC 8944C, IAB 2/19/25, effective 3/26/25]

disqualification matters requirements are set forth in rule 701—7.22(17A). [ARC 8944C, IAB 2/19/25, effective 3/26/25]