Bill Text: IA HSB696 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to state taxation and related laws of the state, including the administration by the department of revenue of certain tax credits and refunds, income taxes, moneys and credits taxes, sales and use taxes, partnership and pass-through entity audits, and by modifying provisions relating to the reinstatement of business entities, the assessment and valuation of property, and providing penalties, and including effective date and retroactive applicability provisions.(See HF 2641.)
Spectrum: Committee Bill
Status: (N/A - Dead) 2020-03-03 - Subcommittee recommends passage. [HSB696 Detail]
Download: Iowa-2019-HSB696-Introduced.html
House
Study
Bill
696
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
REVENUE
BILL)
A
BILL
FOR
An
Act
relating
to
state
taxation
and
related
laws
of
the
1
state,
including
the
administration
by
the
department
of
2
revenue
of
certain
tax
credits
and
refunds,
income
taxes,
3
moneys
and
credits
taxes,
sales
and
use
taxes,
partnership
4
and
pass-through
entity
audits,
and
by
modifying
provisions
5
relating
to
the
reinstatement
of
business
entities,
6
the
assessment
and
valuation
of
property,
and
providing
7
penalties,
and
including
effective
date
and
retroactive
8
applicability
provisions.
9
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
10
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DIVISION
I
1
ADMINISTRATION
AND
PENALTY
PROVISIONS
2
Section
1.
Section
331.603,
subsection
5,
Code
2020,
is
3
amended
to
read
as
follows:
4
5.
a.
The
governing
board
of
the
county
land
record
5
information
system
may
enter
into
an
agreement,
including
but
6
not
limited
to
an
agreement
pursuant
to
chapter
28E,
with
a
7
public
agency,
as
defined
in
section
28E.2,
to
provide
access
8
to
electronic
documents
or
records
on
a
batch
basis.
Access
to
9
electronic
documents
or
records
may
be
provided
for
a
fee
if
10
permitted
in
the
agreement
between
the
governing
board
and
the
11
public
agency.
12
b.
The
governing
board
of
the
county
land
record
information
13
system
shall
not
enter
into
an
agreement
other
than
as
provided
14
in
paragraph
“a”
to
provide
access
to
electronic
documents
or
15
records
on
a
batch
basis.
The
county
recorder
may
collect
16
reasonable
fees
for
access
to
electronic
documents
and
records
17
pursuant
to
an
agreement.
The
fees
shall
not
exceed
the
18
actual
cost
of
providing
access
to
the
electronic
documents
19
and
records.
“Actual
cost”
means
only
those
expenses
directly
20
attributable
to
providing
access
to
electronic
documents
21
and
records.
“Actual
cost”
shall
not
include
costs
such
as
22
employment
benefits,
depreciation,
maintenance,
electricity,
23
or
insurance
associated
with
the
administration
of
the
office
24
of
the
county
recorder
or
the
county
land
record
information
25
system.
26
b.
c.
Electronic
documents
and
records
made
available
27
under
this
subsection
shall
not
include
personally
identifiable
28
information
and
shall
be
subjected
to
a
redaction
process
prior
29
to
the
transfer
of
the
electronic
documents
or
records
to
30
another
person
pursuant
to
an
agreement
under
paragraph
“a”
.
31
Sec.
2.
Section
421.6,
Code
2020,
is
amended
to
read
as
32
follows:
33
421.6
Definition
of
return.
34
For
purposes
of
this
title
,
unless
the
context
otherwise
35
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requires,
“return”
means
any
tax
or
information
return,
amended
1
return,
declaration
of
estimated
tax,
or
claim
for
refund
2
that
is
required
by,
provided
for,
or
permitted
under,
the
3
provisions
of
this
title
or
section
533.329,
and
which
is
filed
4
with
the
department
by,
on
behalf
of,
or
with
respect
to
any
5
person.
“Return”
includes
any
amendment
or
supplement
to
these
6
items,
including
supporting
schedules,
attachments,
or
lists
7
which
are
supplemental
to
or
part
of
the
filed
return.
8
Sec.
3.
Section
421.17,
Code
2020,
is
amended
by
adding
the
9
following
new
subsection:
10
NEW
SUBSECTION
.
36.
To
enter
into
an
agreement
pursuant
11
to
chapter
28E
with
the
state
fair
organized
under
chapter
173
12
or
with
a
fair
defined
in
section
174.1,
to
collect
and
remit
13
taxes
and
fees
from
sellers
making
sales
at
retail
on
property
14
owned,
controlled,
or
operated
by
a
fair
or
through
events
15
conducted
by
a
fair.
16
Sec.
4.
Section
421.27,
subsection
1,
Code
2020,
is
amended
17
to
read
as
follows:
18
1.
Failure
to
timely
file
a
return
or
deposit
form.
19
a.
If
a
person
fails
to
file
with
the
department
on
or
20
before
the
due
date
a
return
or
deposit
form
there
shall
be
21
added
to
the
tax
shown
due
or
required
to
be
shown
due
a
penalty
22
of
ten
percent
of
the
tax
shown
due
or
required
to
be
shown
due.
23
b.
In
the
case
of
a
specified
business
with
no
tax
shown
24
due
or
required
to
be
shown
due
that
fails
to
timely
file
an
25
income
return,
the
specified
business
shall
pay
the
greater
of
26
the
following
penalty
amounts:
27
(1)
Two
hundred
dollars.
28
(2)
An
amount
equal
to
ten
percent
of
the
imputed
Iowa
29
liability
of
the
specified
business,
not
to
exceed
twenty-five
30
thousand
dollars.
31
c.
The
penalty,
if
assessed
pursuant
to
paragraph
“a”
or
32
“b”
,
shall
be
waived
by
the
department
upon
a
showing
of
any
of
33
the
following
conditions:
34
a.
(1)
At
An
amount
of
tax
greater
than
zero
is
required
to
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be
shown
due
and
at
least
ninety
percent
of
the
tax
required
to
1
be
shown
due
has
been
paid
by
the
due
date
of
the
tax.
2
b.
(2)
Those
taxpayers
who
are
required
to
file
quarterly
3
returns,
or
monthly
or
semimonthly
deposit
forms
may
have
one
4
late
return
or
deposit
form
within
a
three-year
period.
The
5
use
of
any
other
penalty
exception
will
not
count
as
a
late
6
return
or
deposit
form
for
purposes
of
this
exception.
7
c.
(3)
The
death
of
a
taxpayer,
death
of
a
member
of
8
the
immediate
family
of
the
taxpayer,
or
death
of
the
person
9
directly
responsible
for
filing
the
return
and
paying
the
tax,
10
when
the
death
interferes
with
timely
filing.
11
d.
(4)
The
onset
of
serious,
long-term
illness
or
12
hospitalization
of
the
taxpayer,
of
a
member
of
the
immediate
13
family
of
the
taxpayer,
or
of
the
person
directly
responsible
14
for
filing
the
return
and
paying
the
tax.
15
e.
(5)
Destruction
of
records
by
fire,
flood,
or
other
act
16
of
God.
17
f.
(6)
The
taxpayer
presents
proof
that
the
taxpayer
18
relied
upon
applicable,
documented,
written
advice
specifically
19
made
to
the
taxpayer,
to
the
taxpayer’s
preparer,
or
to
an
20
association
representative
of
the
taxpayer
from
the
department,
21
state
department
of
transportation,
county
treasurer,
or
22
federal
internal
revenue
service,
whichever
is
appropriate,
23
that
has
not
been
superseded
by
a
court
decision,
ruling
by
a
24
quasi-judicial
body,
or
the
adoption,
amendment,
or
repeal
of
25
a
rule
or
law.
26
g.
(7)
Reliance
upon
results
in
a
previous
audit
was
a
27
direct
cause
for
the
failure
to
file
where
the
previous
audit
28
expressly
and
clearly
addressed
the
issue
and
the
previous
29
audit
results
have
not
been
superseded
by
a
court
decision,
or
30
the
adoption,
amendment,
or
repeal
of
a
rule
or
law.
31
h.
(8)
Under
rules
prescribed
by
the
director,
the
taxpayer
32
presents
documented
proof
of
substantial
authority
to
rely
33
upon
a
particular
position
or
upon
proof
that
all
facts
and
34
circumstances
are
disclosed
on
a
return
or
deposit
form.
35
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i.
(9)
The
return,
deposit
form,
or
payment
is
timely,
1
but
erroneously,
mailed
with
adequate
postage
to
the
internal
2
revenue
service,
another
state
agency,
or
a
local
government
3
agency
and
the
taxpayer
provides
proof
of
timely
mailing
with
4
adequate
postage.
5
j.
(10)
The
tax
has
been
paid
by
the
wrong
licensee
and
the
6
payments
were
timely
remitted
to
the
department
for
one
or
more
7
tax
periods
prior
to
notification
by
the
department.
8
k.
(11)
The
failure
to
file
was
discovered
through
a
9
sanctioned
self-audit
program
conducted
by
the
department.
10
l.
(12)
If
the
availability
of
funds
in
payment
of
tax
11
required
to
be
made
through
electronic
funds
transfer
is
12
delayed
and
the
delay
of
availability
is
due
to
reasons
beyond
13
the
control
of
the
taxpayer.
“Electronic
funds
transfer”
means
14
any
transfer
of
funds,
other
than
a
transaction
originated
15
by
check,
draft,
or
similar
paper
instrument,
that
is
16
initiated
through
an
electronic
terminal
telephone,
computer,
17
magnetic
tape,
or
similar
device
for
the
purpose
of
ordering,
18
instructing,
or
authorizing
a
financial
institution
to
debit
or
19
credit
an
account.
20
m.
(13)
The
failure
to
file
a
timely
inheritance
tax
return
21
resulting
solely
from
a
disclaimer
that
required
the
personal
22
representative
to
file
an
inheritance
tax
return.
The
penalty
23
shall
be
waived
if
such
return
is
filed
and
any
tax
due
is
paid
24
within
the
later
of
nine
months
from
the
date
of
death
or
sixty
25
days
from
the
delivery
or
filing
of
the
disclaimer
pursuant
to
26
section
633E.12
.
27
n.
(14)
That
an
Iowa
inheritance
tax
return
is
filed
for
28
an
estate
within
the
later
of
nine
months
from
the
date
of
29
death
or
sixty
days
from
the
filing
of
a
disclaimer
by
the
30
beneficiary
of
the
estate
refusing
to
take
the
property
or
31
right
or
interest
in
the
property.
32
Sec.
5.
Section
421.27,
subsections
4
and
6,
Code
2020,
are
33
amended
to
read
as
follows:
34
4.
Willful
failure
to
file
or
deposit.
35
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a.
(1)
In
case
of
willful
failure
to
file
a
return
1
or
deposit
form
with
the
intent
to
evade
tax
or
a
filing
2
requirement
,
or
in
case
of
willfully
filing
a
false
return
3
or
deposit
form
with
the
intent
to
evade
tax,
in
lieu
of
the
4
penalties
otherwise
provided
in
this
section
,
a
penalty
of
5
seventy-five
percent
shall
be
added
to
the
amount
shown
due
or
6
required
to
be
shown
as
tax
on
the
return
or
deposit
form.
7
(2)
In
case
of
a
willful
failure
by
a
specified
business
to
8
file
an
income
return
with
no
tax
shown
due
or
required
to
be
9
shown
due
with
intent
to
evade
a
filing
requirement,
or
in
case
10
of
willfully
filing
a
false
income
return
with
no
tax
shown
due
11
or
required
to
be
shown
due
with
the
intent
to
evade
reporting
12
of
Iowa-source
income,
the
penalty
imposed
shall
be
the
greater
13
of
the
following
amounts:
14
(a)
One
thousand
five
hundred
dollars.
15
(b)
An
amount
equal
to
seventy-five
percent
of
the
imputed
16
Iowa
liability
of
the
specified
business.
17
(3)
If
penalties
are
applicable
for
failure
to
file
a
18
return
or
deposit
form
and
failure
to
pay
the
tax
shown
due
or
19
required
to
be
shown
due
on
the
return
or
deposit
form,
the
20
penalty
provision
for
failure
to
file
shall
be
in
lieu
of
the
21
penalty
provisions
for
failure
to
pay
the
tax
shown
due
or
22
required
to
be
shown
due
on
the
return
or
deposit
form,
except
23
in
the
case
of
willful
failure
to
file
a
return
or
deposit
form
24
or
willfully
filing
a
false
return
or
deposit
form
with
intent
25
to
evade
tax.
26
b.
The
penalties
imposed
under
this
subsection
are
not
27
subject
to
waiver.
28
6.
Improper
receipt
of
payments
Liability
——
fraudulent
29
practice
.
A
person
who
makes
an
erroneous
application
for
30
refund,
credit,
reimbursement,
rebate,
or
other
payment
shall
31
be
liable
for
any
overpayment
received
or
tax
liability
reduced
32
plus
interest
at
the
rate
in
effect
under
section
421.7
.
33
a.
In
addition,
a
person
who
willfully
commits
a
fraudulent
34
practice
and
is
liable
for
a
penalty
equal
to
seventy-five
35
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percent
of
the
refund,
credit,
exemption,
reimbursement,
1
rebate,
or
other
payment
or
benefit
being
claimed
if
the
person
2
does
any
of
the
following:
3
(1)
Willfully
makes
a
false
or
frivolous
application
for
4
refund,
credit
,
exemption
,
reimbursement,
rebate,
or
other
5
payment
or
benefit
with
intent
to
evade
tax
or
with
intent
to
6
receive
a
refund,
credit,
exemption,
reimbursement,
rebate,
7
or
other
payment
or
benefit,
to
which
the
person
is
not
8
entitled
is
guilty
of
a
fraudulent
practice
and
is
liable
for
a
9
penalty
equal
to
seventy-five
percent
of
the
refund,
credit,
10
reimbursement,
rebate,
or
other
payment
being
claimed
.
11
(2)
Willfully
submits
any
false
information,
document,
12
or
document
containing
false
information
in
support
of
an
13
application
for
refund,
credit,
exemption,
reimbursement,
14
rebate,
or
other
payment
or
benefit
with
the
intent
to
evade
15
tax.
16
(3)
Willfully
submits
with
any
false
information,
document,
17
or
document
containing
false
information
in
support
of
an
18
application
for
refund
with
the
intent
to
receive
a
refund,
19
credit,
exemption,
reimbursement,
rebate,
or
other
payment
20
benefit,
to
which
the
person
is
not
entitled.
21
b.
Payments,
penalties,
and
interest
due
under
this
22
subsection
may
be
collected
and
enforced
in
the
same
manner
as
23
the
tax
imposed.
24
Sec.
6.
Section
421.27,
Code
2020,
is
amended
by
adding
the
25
following
new
subsections:
26
NEW
SUBSECTION
.
8.
Definitions.
As
used
in
this
section:
27
a.
“Imputed
Iowa
liability”
means
any
of
the
following:
28
(1)
In
the
case
of
corporations
doing
business
in
Iowa
29
other
than
corporations
described
in
section
422.34
or
section
30
422.36,
subsection
5,
the
corporation’s
Iowa
net
income
after
31
the
application
of
the
Iowa
business
activity
ration,
if
32
applicable,
multiplied
by
the
top
income
tax
rate
imposed
under
33
section
422.33
for
the
tax
year.
34
(2)
In
the
case
of
financial
institutions
as
defined
35
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in
section
422.61
doing
business
in
Iowa,
the
financial
1
institution’s
Iowa
net
income
after
the
application
of
the
2
Iowa
business
activity
ratio,
if
applicable,
multiplied
by
the
3
franchise
tax
rate
imposed
under
section
422.63
for
the
tax
4
year.
5
(3)
In
the
case
of
all
other
entities
doing
business
in
6
Iowa
or
deriving
income
from
sources
within
Iowa,
including
7
corporations
described
in
section
422.36,
subsection
5,
and
all
8
other
entities
required
to
file
an
information
return
under
9
section
422.15,
subsection
2,
the
entity’s
Iowa
net
income
10
after
the
application
of
the
Iowa
business
activity
ratio,
if
11
applicable,
multiplied
by
the
top
income
tax
rate
imposed
under
12
section
422.5A
for
the
tax
year.
13
b.
“Income
return”
means
an
income
tax
return
or
information
14
return
required
under
section
422.15,
subsection
2,
or
section
15
422.36,
422.37,
or
422.62.
16
c.
“Specified
business”
means
a
partnership
or
other
entity
17
required
to
file
an
information
return
under
section
422.15,
18
subsection
2,
a
corporation
required
to
file
a
return
under
19
section
422.36
or
422.37,
or
a
financial
institution
required
20
to
file
a
return
under
section
422.62.
21
NEW
SUBSECTION
.
9.
Additional
penalty.
In
addition
to
the
22
penalties
imposed
by
this
section,
if
a
taxpayer
fails
to
file
23
a
return
within
ninety
days
of
written
notice
by
the
department
24
that
the
taxpayer
is
required
to
do
so,
there
shall
be
added
to
25
the
amount
shown
due
or
required
to
be
shown
due
a
penalty
in
26
the
amount
of
one
thousand
dollars.
27
Sec.
7.
NEW
SECTION
.
421.27A
Perjury.
28
1.
For
purposes
of
this
title,
a
form,
application,
or
any
29
other
documentation
required
or
requested
by
the
department
30
shall
be
required
to
be
certified
under
penalty
of
perjury
that
31
the
information
contained
in
the
form,
application,
or
other
32
documentation
is
true
and
correct.
33
2.
A
person
commits
a
class
“D”
felony
under
any
of
the
34
following
circumstances:
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a.
The
person
makes
a
form,
application,
or
other
document
1
containing
false
information
in
support
of
an
application
for
2
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
3
payment
or
benefit
with
intent
to
evade
tax.
4
b.
The
person
makes
a
form,
application,
or
other
document
5
containing
false
information
with
intent
to
unlawfully
receive
6
a
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
7
payment
or
benefit,
to
which
the
person
is
not
entitled.
8
c.
The
person
knowingly
makes
any
false
affidavit.
9
d.
The
person
knowingly
swears
or
affirms
falsely
to
any
10
matter
or
thing
required
by
the
terms
of
this
title
to
be
sworn
11
to
or
affirmed.
12
Sec.
8.
NEW
SECTION
.
421.59
Power
of
attorney
——
authority
13
to
act
on
behalf
of
taxpayer.
14
1.
a.
A
taxpayer
may
authorize
an
individual
to
act
on
15
behalf
of
the
taxpayer
by
filing
a
power
of
attorney
with
the
16
department,
on
a
form
prescribed
by
the
department.
17
b.
A
taxpayer
may
at
any
time
revoke
a
power
of
attorney
18
filed
with
the
department
pursuant
to
subsection
1.
Upon
19
processing
of
the
taxpayer’s
revocation
of
a
power
of
attorney,
20
the
department
shall
cease
honoring
the
power
of
attorney.
21
2.
The
department
may
authorize
the
following
persons
to
act
22
and
receive
information
on
behalf
of
and
exercise
all
of
the
23
rights
of
a
taxpayer,
regardless
of
whether
a
power
of
attorney
24
has
been
filed
pursuant
to
subsection
1:
25
a.
A
guardian,
conservator,
or
custodian
appointed
by
a
26
court,
if
a
taxpayer
has
been
deemed
legally
incompetent
by
a
27
court.
The
authority
of
the
appointee
to
act
on
behalf
of
the
28
taxpayer
shall
be
limited
to
the
extent
specifically
stated
in
29
the
order
of
appointment.
30
(1)
Upon
request,
a
guardian,
conservator,
or
custodian
of
31
a
taxpayer
shall
submit
to
the
department
a
copy
of
the
court
32
order
appointing
the
guardian,
conservator,
or
custodian.
33
(2)
The
department
may
petition
the
court
that
appointed
the
34
guardian,
conservator,
or
custodian
to
verify
the
appointment
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or
to
determine
the
scope
of
the
appointment.
1
b.
A
receiver
appointed
pursuant
to
chapter
680.
An
2
appointed
receiver
shall
be
limited
to
act
on
behalf
of
the
3
taxpayer
by
the
authority
stated
in
the
order
of
appointment.
4
(1)
Upon
the
request
of
the
department,
a
receiver
shall
5
submit
to
the
department
a
copy
of
the
court
order
appointing
6
the
receiver.
7
(2)
The
department
may
petition
the
court
that
appointed
the
8
receiver
to
verify
the
appointment
or
to
determine
the
scope
9
of
the
appointment.
10
c.
An
individual
who
has
been
named
as
an
authorized
11
representative
on
a
fiduciary
return
of
income
filed
under
12
section
422.14
or
a
tax
return
filed
under
chapter
450.
13
d.
(1)
An
individual
holding
the
following
title
or
14
position
within
a
corporation,
association,
partnership,
or
15
other
business
entity:
16
(a)
A
president
or
chief
executive
officer,
or
any
other
17
officer
of
the
corporation
or
association
if
the
president
or
18
chief
executive
officer
certifies
that
the
officer
has
the
19
authority
to
legally
bind
the
corporation
or
association.
20
(b)
A
designated
partner
duly
authorized
to
act
on
behalf
21
of
the
partnership.
22
(c)
A
person
authorized
to
act
on
behalf
of
a
limited
23
liability
company
in
tax
matters
pursuant
to
a
valid
statement
24
of
authority.
25
(2)
An
individual
seeking
to
act
on
behalf
of
a
taxpayer
26
pursuant
to
this
paragraph
shall
file
an
affidavit
with
the
27
department
attesting
to
the
identity
and
qualifications
of
the
28
individual
and
any
necessary
certifications
required
under
this
29
paragraph.
The
department
may
require
any
documents
or
other
30
evidence
to
demonstrate
the
individual
has
authority
to
act
on
31
behalf
of
the
taxpayer
before
the
department.
32
e.
A
licensed
attorney
who
has
appeared
on
behalf
of
the
33
taxpayer
or
the
taxpayer’s
estate
in
a
court
proceeding.
34
Authorization
under
this
paragraph
is
limited
to
those
matters
35
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within
the
scope
of
the
representation.
1
f.
A
parent
or
guardian
of
a
taxpayer
who
has
not
reached
2
the
age
of
majority
where
the
parent
or
guardian
has
signed
the
3
taxpayer’s
return
on
behalf
of
the
taxpayer.
Authorization
4
under
this
paragraph
is
limited
to
those
matters
relating
to
5
the
return
signed
by
the
parent
or
guardian.
Authorization
6
under
this
paragraph
automatically
terminates
when
the
taxpayer
7
reaches
the
age
of
majority
pursuant
to
section
599.1.
8
3.
a.
In
lieu
of
executing
a
power
of
attorney
pursuant
9
to
subsection
1,
the
department
may
enter
into
a
memorandum
of
10
understanding
with
the
taxpayer
for
each
employee,
officer,
11
or
member
of
a
third-party
entity
engaged
with
or
otherwise
12
hired
by
a
taxpayer
to
manage
the
tax
matters
of
the
taxpayer,
13
to
permit
the
disclosure
of
confidential
tax
information
to
14
the
third-party
entity
and
the
authority
to
act
on
behalf
of
15
the
taxpayer.
The
memorandum
of
understanding
shall
adhere
to
16
requirements
as
established
by
the
director.
17
b.
The
memorandum
of
understanding
shall
be
signed
by
18
the
director,
the
taxpayer,
and
the
third-party
entity
or
an
19
authorized
representative
of
the
third-party
entity.
20
c.
At
any
time,
a
taxpayer
may
unilaterally
revoke
21
a
memorandum
of
understanding
entered
into
pursuant
to
22
this
subsection
by
filing
a
notice
of
revocation
with
the
23
department.
Upon
the
filing
of
such
a
revocation
by
the
24
taxpayer,
the
department
shall
cease
honoring
the
memorandum
25
of
understanding.
26
4.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
27
to
administer
this
section.
28
Sec.
9.
Section
421.60,
subsection
2,
paragraph
a,
29
subparagraph
(2),
Code
2020,
is
amended
to
read
as
follows:
30
(2)
The
statement
prepared
in
accordance
with
this
31
paragraph
shall
be
available
on
the
department’s
internet
site.
32
The
internet
site
for
this
information
shall
be
distributed
by
33
the
department
to
all
taxpayers
at
the
first
contact
by
the
34
department
with
respect
to
the
determination
or
collection
of
35
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any
tax,
except
in
the
case
of
simply
providing
tax
forms.
1
Sec.
10.
Section
421.60,
Code
2020,
is
amended
by
adding
the
2
following
new
subsection:
3
NEW
SUBSECTION
.
11.
Electronic
communication.
4
Notwithstanding
any
provision
of
the
law
to
the
contrary,
for
5
purposes
of
this
title
and
sections
321.105A
and
533.329,
a
6
taxpayer
may
elect
to
receive
any
notices,
correspondence,
7
or
other
communication
electronically
that
the
department
is
8
required
to
send
by
regular
mail.
The
director
may
establish
9
procedures
and
limitations
for
obtaining
this
election
from
the
10
taxpayer.
11
Sec.
11.
Section
421.62,
subsection
1,
Code
2020,
is
amended
12
by
adding
the
following
new
paragraph:
13
NEW
PARAGRAPH
.
0b.
“Income
tax
return
or
claim
for
refund”
14
means
any
tax
return
or
claim
for
refund
under
chapter
422,
15
excluding
withholding
returns
under
section
422.16.
16
Sec.
12.
Section
421.62,
subsection
1,
paragraph
c,
17
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
18
(1)
“Tax
return
preparer”
means
any
individual
who,
for
19
a
fee
or
other
consideration,
prepares
ten
or
more
income
20
tax
returns
or
claims
for
refund
under
chapter
422
during
21
a
calendar
year,
or
who
assumes
final
responsibility
for
22
completed
work
on
such
income
tax
returns
or
claims
for
refund
23
under
chapter
422
on
which
preliminary
work
has
been
done
by
24
another
individual.
25
Sec.
13.
Section
421.62,
subsection
2,
paragraph
a,
Code
26
2020,
is
amended
to
read
as
follows:
27
a.
On
or
after
January
1,
2020,
a
tax
return
preparer
28
is
required
to
include
the
tax
return
preparer’s
PTIN
on
29
any
income
tax
return
or
claim
for
refund
prepared
by
the
30
tax
return
preparer
and
filed
under
chapter
422
with
the
31
department
.
32
Sec.
14.
Section
421.64,
subsection
1,
Code
2020,
is
amended
33
to
read
as
follows:
34
1.
For
purposes
of
this
section
,
“tax
return
preparer”
means
35
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the
same
as
defined
in
section
421.61
421.62
.
1
Sec.
15.
Section
422.20,
subsections
1
and
2,
Code
2020,
are
2
amended
to
read
as
follows:
3
1.
It
shall
be
unlawful
for
any
present
or
former
officer
4
or
employee
of
the
state
to
willfully
or
recklessly
divulge
or
5
to
make
known
in
any
manner
whatever
not
provided
by
law
to
6
any
person
the
amount
or
source
of
income,
profits,
losses,
7
expenditures,
or
any
particular
thereof,
set
forth
or
disclosed
8
in
any
income
return,
or
to
permit
any
income
return
or
copy
9
thereof
or
any
book
containing
any
abstract
or
particulars
10
thereof
to
be
seen
or
examined
by
any
person
except
as
provided
11
by
law;
and
it
shall
be
unlawful
for
any
person
to
willfully
or
12
recklessly
print
or
publish
in
any
manner
whatever
not
provided
13
by
law
any
income
return,
or
any
part
thereof
or
source
of
14
income,
profits,
losses,
or
expenditures
appearing
in
any
15
income
return;
and
any
person
committing
an
offense
against
the
16
foregoing
provision
shall
be
guilty
of
a
serious
misdemeanor.
17
If
the
offender
is
an
officer
or
employee
of
the
state,
such
18
person
shall
also
be
dismissed
from
office
or
discharged
from
19
employment.
Nothing
herein
shall
prohibit
turning
over
to
duly
20
authorized
officers
of
the
United
States
or
tax
officials
of
21
other
states
state
information
and
income
returns
pursuant
22
to
agreement
between
the
director
and
the
secretary
of
the
23
treasury
of
the
United
States
or
the
secretary’s
delegate
or
24
pursuant
to
a
reciprocal
agreement
with
another
state.
25
2.
It
is
unlawful
for
an
officer,
employee,
or
agent,
or
26
former
officer,
employee,
or
agent
of
the
state
to
willfully
27
or
recklessly
disclose
to
any
person,
except
as
authorized
28
in
subsection
1
of
this
section
,
any
federal
tax
return
29
or
return
information
as
defined
in
section
6103(b)
of
the
30
Internal
Revenue
Code.
It
is
unlawful
for
a
person
to
whom
31
any
federal
tax
return
or
return
information,
as
defined
in
32
section
6103(b)
of
the
Internal
Revenue
Code,
is
disclosed
33
in
a
manner
unauthorized
by
subsection
1
of
this
section
34
to
thereafter
willfully
or
recklessly
print
or
publish
in
35
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any
manner
not
provided
by
law
any
such
return
or
return
1
information.
A
person
violating
this
provision
is
guilty
of
2
a
serious
misdemeanor.
3
Sec.
16.
Section
422.20,
subsection
3,
paragraph
a,
Code
4
2020,
is
amended
to
read
as
follows:
5
a.
Unless
otherwise
expressly
permitted
by
section
8A.504
,
6
section
8G.4
,
section
11.41
,
section
96.11,
subsection
6
,
7
section
421.17,
subsections
22,
23,
and
26
,
section
421.17,
8
subsection
27
,
paragraph
“k”
,
section
421.17,
subsection
31
,
9
section
252B.9
,
section
321.40,
subsection
6
,
sections
321.120
,
10
421.19
,
421.28
,
421.59,
422.72
,
and
452A.63
,
this
section
,
or
11
another
provision
of
law,
a
tax
return,
return
information,
or
12
investigative
or
audit
information
shall
not
be
divulged
to
any
13
person
or
entity,
other
than
the
taxpayer,
the
department,
or
14
internal
revenue
service
for
use
in
a
matter
unrelated
to
tax
15
administration.
16
Sec.
17.
Section
422.20,
Code
2020,
is
amended
by
adding
the
17
following
new
subsections:
18
NEW
SUBSECTION
.
3A.
The
director
may
disclose
the
tax
19
return
of
a
partnership,
limited
liability
company,
or
S
20
corporation,
any
such
return
information,
or
any
investigative
21
information
related
to
the
return,
to
any
person
who
was
a
22
partner,
shareholder,
or
member
of
such
an
entity
during
any
23
part
of
the
period
covered
by
the
return.
24
NEW
SUBSECTION
.
3B.
a.
Prior
to
being
made
available
for
25
public
inspection,
the
department
shall
redact
from
the
record
26
in
an
appeal
or
contested
case
the
following
information
from
27
any
pleading,
exhibit,
attachment,
motion,
written
evidence,
28
final
order,
decision,
or
opinion:
29
(1)
A
financial
account
number.
30
(2)
An
account
number
generated
by
the
department
to
31
identify
an
audit
or
examination.
32
(3)
A
social
security
number.
33
(4)
A
federal
employer
identification
number.
34
(5)
The
name
of
a
minor.
35
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(6)
A
medical
record
or
other
medical
information.
1
b.
Upon
a
motion
filed
by
the
taxpayer,
the
department
2
may
redact
from
the
record
in
an
appeal
or
contested
case
any
3
other
information
from
a
pleading,
exhibit,
attachment,
motion,
4
or
written
evidence,
if
the
taxpayer
proves
by
clear
and
5
convincing
evidence
that
the
release
of
such
information
would
6
disclose
a
trade
secret
or
be
a
clear,
unwarranted
invasion
of
7
personal
privacy.
8
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
9
decisions,
or
opinions
available
for
public
inspection,
the
10
department
may
disclose
the
items
in
paragraph
“a”
if
the
11
department
determines
such
information
is
necessary
to
the
12
resolution
or
decision
of
the
appeal
or
case.
13
d.
Except
as
described
in
paragraphs
“a”
and
“b”
,
all
14
information
contained
in
a
pleading,
exhibit,
attachment,
15
motion,
written
evidence,
final
order,
decision,
opinion,
16
and
the
record
in
an
appeal
or
contested
case
is
subject
to
17
examination
to
the
extent
provided
by
chapter
22.
18
Sec.
18.
Section
422.25,
subsection
1,
Code
2020,
is
amended
19
by
adding
the
following
new
paragraph:
20
NEW
PARAGRAPH
.
c.
The
period
of
examination
and
21
determination
is
unlimited
under
this
title
in
the
case
of
22
any
action
by
the
department
to
recover
or
rescind
any
tax
23
expenditure
as
defined
by
section
2.48,
subsection
1,
or
any
24
other
incentive
or
assistance,
due
to
a
failure
to
meet
or
25
maintain
the
requirements
of
a
program
administered
by
the
26
economic
development
authority.
27
Sec.
19.
Section
422.72,
subsection
1,
paragraph
a,
28
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
29
(1)
It
is
unlawful
for
the
director,
or
any
person
having
30
an
administrative
duty
under
this
chapter
,
or
any
present
or
31
former
officer
or
other
employee
of
the
state
authorized
by
the
32
director
to
examine
returns,
to
willfully
or
recklessly
divulge
33
in
any
manner
whatever,
the
business
affairs,
operations,
or
34
information
obtained
by
an
investigation
under
this
chapter
of
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records
and
equipment
of
any
person
visited
or
examined
in
the
1
discharge
of
official
duty,
or
the
amount
or
source
of
income,
2
profits,
losses,
expenditures
or
any
particular
thereof,
set
3
forth
or
disclosed
in
any
return,
or
to
willfully
or
recklessly
4
permit
any
return
or
copy
of
a
return
or
any
book
containing
5
any
abstract
or
particulars
thereof
to
be
seen
or
examined
by
6
any
person
except
as
provided
by
law.
7
Sec.
20.
Section
422.72,
Code
2020,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
7A.
a.
Prior
to
being
made
available
for
10
public
inspection,
the
department
shall
redact
from
the
record
11
in
an
appeal
or
contested
case
the
following
information
from
12
any
pleading,
exhibit,
attachment,
motion,
written
evidence,
13
final
order,
decision,
or
opinion:
14
(1)
A
financial
account
number.
15
(2)
An
account
number
generated
by
the
department
to
16
identify
an
audit
or
examination.
17
(3)
A
social
security
number.
18
(4)
A
federal
employer
identification
number.
19
(5)
The
name
of
a
minor.
20
(6)
A
medical
record
or
other
medical
information.
21
b.
Upon
a
motion
filed
by
the
taxpayer,
the
department
22
may
redact
from
the
record
in
an
appeal
or
contested
case
any
23
other
information
from
a
pleading,
exhibit,
attachment,
motion,
24
or
written
evidence,
if
the
taxpayer
proves
by
clear
and
25
convincing
evidence
that
the
release
of
such
information
would
26
disclose
a
trade
secret
or
be
a
clear,
unwarranted
invasion
of
27
personal
privacy.
28
c.
Notwithstanding
paragraph
“a”
,
when
making
final
orders,
29
decisions,
or
opinions
available
for
public
inspection,
the
30
department
may
disclose
the
items
in
paragraph
“a”
if
the
31
department
determines
such
information
is
necessary
to
the
32
resolution
or
decision
of
the
appeal
or
case.
33
d.
Except
as
described
in
paragraphs
“a”
and
“b”
,
all
34
information
contained
in
a
pleading,
exhibit,
attachment,
35
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motion,
written
evidence,
final
order,
decision,
opinion,
1
and
the
record
in
an
appeal
or
contested
case
is
subject
to
2
examination
to
the
extent
provided
by
chapter
22.
3
Sec.
21.
Section
423.37,
Code
2020,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
4.
The
period
of
limitation
on
examination
6
and
determination
is
unlimited
under
this
title
in
the
case
7
of
any
action
by
the
department
to
recover
or
rescind
any
tax
8
expenditure
as
defined
by
section
2.48,
subsection
1,
or
any
9
other
incentive
or
assistance,
due
to
a
failure
to
meet
or
10
maintain
the
requirements
of
a
program
administered
by
the
11
economic
development
authority.
12
Sec.
22.
Section
428A.1,
subsections
2
and
3,
Code
2020,
are
13
amended
to
read
as
follows:
14
2.
When
each
deed,
instrument,
or
writing
by
which
any
real
15
property
in
this
state
is
granted,
assigned,
transferred,
or
16
otherwise
conveyed
is
presented
for
recording
to
the
county
17
recorder,
a
declaration
of
value
signed
by
at
least
one
of
the
18
sellers
or
one
of
the
buyers
or
their
agents
shall
be
submitted
19
to
the
county
recorder.
However,
if
the
deed,
instrument,
or
20
writing
contains
multiple
parcels
some
of
which
are
located
21
in
more
than
one
county,
separate
declarations
of
value
22
shall
be
submitted
on
the
parcels
located
in
each
county
and
23
submitted
to
the
county
recorder
of
that
county
when
paying
24
the
tax
as
provided
in
section
428A.5
.
A
declaration
of
value
25
is
not
required
for
those
instruments
described
in
section
26
428A.2,
subsections
2
to
5,
7
to
13,
and
16
to
through
21
,
or
27
described
in
section
428A.2,
subsection
6
,
except
in
the
case
28
of
a
federal
agency
or
instrumentality,
or
if
a
transfer
is
29
the
result
of
acquisition
of
lands,
whether
by
contract
or
30
condemnation,
for
public
purposes
through
an
exercise
of
the
31
power
of
eminent
domain.
32
3.
The
declaration
of
value
shall
state
the
full
33
consideration
paid
for
the
real
property
transferred.
If
34
agricultural
land,
as
defined
in
section
9H.1
,
is
purchased
by
35
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a
corporation,
limited
partnership,
trust,
alien
or
nonresident
1
alien,
the
declaration
of
value
shall
include
the
name
and
2
address
of
the
buyer,
the
name
and
address
of
the
seller,
a
3
legal
description
of
the
agricultural
land,
and
identify
the
4
buyer
as
a
corporation,
limited
partnership,
trust,
alien,
5
or
nonresident
alien.
The
county
recorder
shall
not
record
6
the
declaration
of
value,
but
shall
not
charge
a
recording
7
fee.
The
county
recorder
shall
enter
on
the
declaration
of
8
value
information
the
director
of
revenue
requires
for
the
9
production
of
the
sales/assessment
ratio
study
and
transmit
10
all
declarations
of
value
to
the
city
or
county
assessor
in
11
whose
jurisdiction
the
property
is
located.
The
city
or
county
12
assessor
shall
enter
on
the
declaration
of
value
provide
the
13
information
the
director
of
revenue
requires
for
the
production
14
of
the
sales/assessment
ratio
study
and
transmit
one
copy
of
15
each
declaration
of
value
to
the
director
of
revenue,
at
times
16
as
directed
by
the
director
of
revenue.
The
assessor
shall
17
retain
one
copy
of
each
declaration
of
value
for
three
years
18
from
December
31
of
the
year
in
which
the
transfer
of
realty
19
for
which
the
declaration
was
filed
took
place.
The
director
20
of
revenue
shall,
upon
receipt
of
the
information
required
to
21
be
filed
under
this
chapter
by
the
city
or
county
assessor,
22
send
to
the
office
of
the
secretary
of
state
that
part
of
the
23
declaration
of
value
which
identifies
a
corporation,
limited
24
partnership,
trust,
alien,
or
nonresident
alien
as
a
purchaser
25
of
agricultural
land
as
defined
in
section
9H.1
.
26
Sec.
23.
Section
441.48,
Code
2020,
is
amended
to
read
as
27
follows:
28
441.48
Notice
of
adjustment.
29
1.
Before
the
department
of
revenue
shall
adjust
the
30
valuation
of
any
class
of
property
any
such
percentage,
the
31
department
shall
first
serve
ten
days’
notice
by
mail,
on
the
32
county
auditor
of
the
county
whose
valuation
is
proposed
to
be
33
adjusted.
The
department
shall
hold
an
adjourned
meeting
after
34
such
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2.
If
the
county
or
assessing
jurisdiction
intends
to
1
protest
the
proposed
adjustment,
the
board
of
supervisors
or
2
city
council,
as
applicable,
shall
provide
the
department
with
3
notice
of
intent
to
protest
prior
to
expiration
of
the
ten
4
days’
notice.
5
3.
After
expiration
of
the
ten
days’
notice,
at
which
time
6
the
county
or
assessing
jurisdiction
may
appear
by
its
city
7
council
or
board
of
supervisors,
city
or
county
attorney,
and
8
other
assessing
jurisdiction,
or
city
or
county
officials,
and
9
make
written
or
oral
protest
against
such
proposed
adjustment.
10
4.
The
protest
shall
consist
simply
of
a
statement
of
the
11
error,
or
errors,
complained
of
with
such
facts
as
may
lead
to
12
their
correction.
At
the
adjourned
meeting
13
5.
After
written
protest
is
received,
or
an
oral
protest
14
is
heard,
the
final
action
may
be
taken
in
reference
to
the
15
proposed
adjustment.
16
Sec.
24.
Section
489.706,
subsection
2,
Code
2020,
is
17
amended
to
read
as
follows:
18
2.
The
secretary
of
state
shall
refer
the
federal
tax
19
identification
number
contained
in
the
application
for
20
reinstatement
to
the
departments
department
of
revenue
and
21
workforce
development.
The
departments
department
of
revenue
22
and
workforce
development
shall
report
to
the
secretary
of
23
state
the
tax
status
of
the
limited
liability
company.
If
24
either
the
department
reports
to
the
secretary
of
state
that
25
a
filing
delinquency
or
liability
exists
against
the
limited
26
liability
company,
the
secretary
of
state
shall
not
cancel
the
27
declaration
of
dissolution
until
the
filing
delinquency
or
28
liability
is
satisfied.
29
Sec.
25.
Section
490.1422,
subsection
2,
paragraph
a,
Code
30
2020,
is
amended
to
read
as
follows:
31
a.
The
secretary
of
state
shall
refer
the
federal
tax
32
identification
number
contained
in
the
application
for
33
reinstatement
to
the
departments
department
of
revenue
and
34
workforce
development.
The
departments
department
of
revenue
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and
workforce
development
shall
report
to
the
secretary
1
of
state
the
tax
status
of
the
corporation.
If
either
the
2
department
reports
to
the
secretary
of
state
that
a
filing
3
delinquency
or
liability
exists
against
the
corporation,
4
the
secretary
of
state
shall
not
cancel
the
certificate
of
5
dissolution
until
the
filing
delinquency
or
liability
is
6
satisfied.
7
Sec.
26.
Section
501.813,
subsection
2,
paragraph
a,
Code
8
2020,
is
amended
to
read
as
follows:
9
a.
The
secretary
of
state
shall
refer
the
federal
tax
10
identification
number
contained
in
the
application
for
11
reinstatement
to
the
departments
department
of
revenue
and
12
workforce
development.
The
departments
department
of
revenue
13
and
workforce
development
shall
report
to
the
secretary
14
of
state
the
tax
status
of
the
cooperative.
If
either
the
15
department
reports
to
the
secretary
of
state
that
a
filing
16
delinquency
or
liability
exists
against
the
cooperative,
17
the
secretary
of
state
shall
not
cancel
the
certificate
of
18
dissolution
until
the
filing
delinquency
or
liability
is
19
satisfied.
20
Sec.
27.
Section
504.1423,
subsection
2,
paragraph
a,
Code
21
2020,
is
amended
to
read
as
follows:
22
a.
The
secretary
of
state
shall
refer
the
federal
tax
23
identification
number
contained
in
the
application
for
24
reinstatement
to
the
departments
department
of
revenue
and
25
workforce
development.
The
departments
department
of
revenue
26
and
workforce
development
shall
report
to
the
secretary
27
of
state
the
tax
status
of
the
corporation.
If
either
the
28
department
reports
to
the
secretary
of
state
that
a
filing
29
delinquency
or
liability
exists
against
the
corporation,
30
the
secretary
of
state
shall
not
cancel
the
certificate
of
31
dissolution
until
the
filing
delinquency
or
liability
is
32
satisfied.
33
Sec.
28.
Section
533.329,
Code
2020,
is
amended
by
adding
34
the
following
new
subsection:
35
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NEW
SUBSECTION
.
03.
Returns
shall
be
in
the
form
the
1
director
of
revenue
prescribes,
and
shall
be
filed
with
the
2
department
of
revenue
on
or
before
the
last
day
of
the
fourth
3
month
after
the
expiration
of
the
tax
year.
The
moneys
and
4
credits
tax
is
due
and
payable
on
the
last
day
of
the
fourth
5
month
after
the
expiration
of
the
tax
year.
6
Sec.
29.
Section
533.329,
subsection
3,
Code
2020,
is
7
amended
to
read
as
follows:
8
3.
The
department
of
revenue
shall
administer
and
enforce
9
the
provisions
of
this
section
,
and
except
as
explicitly
10
provided
in
this
section
or
another
provision
of
law,
shall
11
apply
all
applicable
penalty,
interest,
and
administrative
12
provisions
of
chapters
421
and
422
as
nearly
as
possible
in
13
administering
and
enforcing
the
moneys
and
credits
tax
imposed
14
by
this
section
.
15
Sec.
30.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
16
general
assembly
that
the
sections
of
this
division
amending
17
Code
sections
422.25
and
423.37
are
conforming
amendments
18
consistent
with
current
state
law,
and
that
the
amendments
19
do
not
change
the
application
of
current
law
but
instead
20
reflect
current
law
both
before
and
after
the
enactment
of
this
21
division
of
this
Act.
22
Sec.
31.
EFFECTIVE
DATE.
The
following,
being
deemed
of
23
immediate
importance,
take
effect
upon
enactment:
24
1.
The
section
of
this
division
of
this
Act
amending
section
25
422.25.
26
2.
The
section
of
this
division
of
this
Act
amending
section
27
423.37.
28
Sec.
32.
APPLICABILITY.
The
following
apply
to
tax
years
29
beginning
on
or
after
January
1,
2022:
30
The
sections
of
this
division
of
this
Act
amending
section
31
421.27.
32
DIVISION
II
33
SALES
AND
USE
TAX
34
Sec.
33.
Section
321G.4,
subsection
2,
Code
2020,
is
amended
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to
read
as
follows:
1
2.
a.
The
owner
of
the
snowmobile
shall
file
an
application
2
for
registration
with
the
department
through
the
county
3
recorder
of
the
county
of
residence
in
the
manner
established
4
by
the
commission.
The
application
shall
be
completed
by
the
5
owner
and
shall
be
accompanied
by
a
fee
of
fifteen
dollars
and
6
a
writing
fee
as
provided
in
section
321G.27
.
A
snowmobile
7
shall
not
be
registered
by
the
county
recorder
until
the
8
county
recorder
is
presented
with
receipts,
bills
of
sale,
9
or
other
satisfactory
evidence
that
the
sales
or
use
tax
has
10
been
paid
for
the
purchase
of
the
snowmobile
or
that
the
11
owner
is
exempt
from
paying
the
tax.
A
snowmobile
that
has
12
an
expired
registration
certificate
from
another
state
may
be
13
registered
in
this
state
upon
proper
application,
payment
of
14
all
applicable
registration
and
writing
fees,
and
payment
of
a
15
penalty
of
five
dollars.
16
b.
If
the
owner
of
the
snowmobile
is
unable
to
present
17
satisfactory
evidence
that
the
sales
or
use
tax
has
been
paid,
18
the
county
recorder
shall
collect
the
tax.
On
or
before
the
19
tenth
day
of
each
month,
the
county
recorder
shall
remit
to
20
the
department
of
revenue
the
amount
of
the
taxes
collected
21
during
the
preceding
month,
together
with
an
itemized
statement
22
on
forms
furnished
by
the
department
of
revenue
showing
the
23
name
of
each
taxpayer,
the
make
and
purchase
price
of
each
24
snowmobile,
the
amount
of
tax
paid,
and
such
other
information
25
as
the
department
of
revenue
requires.
26
Sec.
34.
Section
321I.4,
subsection
2,
Code
2020,
is
amended
27
to
read
as
follows:
28
2.
a.
The
owner
of
the
all-terrain
vehicle
shall
file
an
29
application
for
registration
with
the
department
through
the
30
county
recorder
of
the
county
of
residence,
or
in
the
case
31
of
a
nonresident
owner,
in
the
county
of
primary
use,
in
the
32
manner
established
by
the
commission.
The
application
shall
33
be
completed
by
the
owner
and
shall
be
accompanied
by
a
fee
34
of
fifteen
dollars
and
a
writing
fee
as
provided
in
section
35
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321I.29
.
An
all-terrain
vehicle
shall
not
be
registered
by
the
1
county
recorder
until
the
county
recorder
is
presented
with
2
receipts,
bills
of
sale,
or
other
satisfactory
evidence
that
3
the
sales
or
use
tax
has
been
paid
for
the
purchase
of
the
4
all-terrain
vehicle
or
that
the
owner
is
exempt
from
paying
the
5
tax.
An
all-terrain
vehicle
that
has
an
expired
registration
6
certificate
from
another
state
may
be
registered
in
this
state
7
upon
proper
application,
payment
of
all
applicable
registration
8
and
writing
fees,
and
payment
of
a
penalty
of
five
dollars.
9
b.
If
the
owner
of
the
all-terrain
vehicle
is
unable
to
10
present
satisfactory
evidence
that
the
sales
or
use
tax
has
11
been
paid,
the
county
recorder
shall
collect
the
tax.
On
or
12
before
the
tenth
day
of
each
month,
the
county
recorder
shall
13
remit
to
the
department
of
revenue
the
amount
of
the
taxes
14
collected
during
the
preceding
month,
together
with
an
itemized
15
statement
on
forms
furnished
by
the
department
of
revenue
16
showing
the
name
of
each
taxpayer,
the
make
and
purchase
price
17
of
each
all-terrain
vehicle,
the
amount
of
tax
paid,
and
such
18
other
information
as
the
department
of
revenue
requires.
19
Sec.
35.
Section
423.2,
subsection
6,
paragraph
bs,
Code
20
2020,
is
amended
to
read
as
follows:
21
bs.
Services
arising
from
or
related
to
installing,
22
maintaining,
servicing,
repairing,
operating,
upgrading,
or
23
enhancing
either
specified
digital
products
or
software
sold
24
as
tangible
personal
property
.
25
Sec.
36.
Section
423.2,
subsection
8,
paragraph
d,
26
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
27
(1)
The
retail
sale
of
tangible
personal
property
or
28
specified
digital
product
and
a
service
,
where
the
tangible
29
personal
property
or
specified
digital
product
is
essential
30
to
the
use
of
the
service,
and
is
provided
exclusively
in
31
connection
with
the
service,
and
the
true
object
of
the
32
transaction
is
the
service.
33
Sec.
37.
Section
423.3,
subsection
3A,
Code
2020,
is
amended
34
to
read
as
follows:
35
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3A.
The
sales
price
from
the
sale
of
a
commercial
recreation
1
service
offering
the
opportunity
to
hunt
a
preserve
whitetail
2
as
defined
in
section
484C.1
if
the
sale
occurred
between
July
3
1,
2005,
and
December
31,
2015.
4
Sec.
38.
Section
423.3,
subsection
31,
unnumbered
paragraph
5
1,
Code
2020,
is
amended
to
read
as
follows:
6
The
sales
price
of
tangible
personal
property
or
specified
7
digital
products
sold
to
and
of
services
furnished
to
a
tribal
8
government
as
defined
in
216A.161,
or
the
sales
price
of
9
tangible
personal
property
or
specified
digital
products
sold
10
to
and
of
services
furnished
,
and
used
for
public
purposes
11
sold
to
a
tax-certifying
or
tax-levying
body
of
the
state
or
a
12
governmental
subdivision
of
the
state,
including
the
following:
13
regional
transit
systems,
as
defined
in
section
324A.1
,
;
14
the
state
board
of
regents
,
;
department
of
human
services
,
;
15
state
department
of
transportation
,
;
any
municipally
owned
16
solid
waste
facility
which
sells
all
or
part
of
its
processed
17
waste
as
fuel
to
a
municipally
owned
public
utility
,
;
and
all
18
divisions,
boards,
commissions,
agencies,
or
instrumentalities
19
of
state,
federal,
county,
or
municipal
government
,
or
tribal
20
government
which
have
no
earnings
going
to
the
benefit
of
an
21
equity
investor
or
stockholder,
except
any
of
the
following:
22
Sec.
39.
Section
423.3,
Code
2020,
is
amended
by
adding
the
23
following
new
subsection:
24
NEW
SUBSECTION
.
60A.
The
sales
price
from
sales
of
diapers
25
eligible
for
medical
assistance
as
defined
in
section
249A.2.
26
Sec.
40.
Section
423.3,
subsection
80,
paragraphs
b
and
c,
27
Code
2020,
are
amended
to
read
as
follows:
28
b.
Subject
to
the
limitations
in
paragraph
“c”
,
if
a
29
contractor,
subcontractor,
or
builder
is
to
use
building
30
materials,
supplies,
and
equipment
,
or
services
in
the
31
performance
of
a
written
construction
contract
with
a
32
designated
exempt
entity,
the
person
shall
purchase
such
33
items
of
tangible
personal
property
or
services
without
34
liability
for
the
tax
if
such
property
or
services
will
be
35
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H.F.
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used
in
the
performance
of
the
written
construction
contract
1
and
a
purchasing
agent
authorization
letter
and
an
exemption
2
certificate,
issued
by
the
designated
exempt
entity,
are
3
presented
to
the
retailer.
4
c.
(1)
With
regard
to
a
written
construction
contract
5
with
a
designated
exempt
entity
described
in
paragraph
“a”
,
6
subparagraph
(1),
the
sales
price
of
building
materials,
7
supplies,
or
equipment
,
or
services
is
exempt
from
tax
by
this
8
subsection
only
to
the
extent
the
building
materials,
supplies,
9
or
equipment
,
or
services
are
completely
consumed
in
the
10
performance
of
the
construction
contract
with
the
designated
11
exempt
entity
,
and
only
if
the
property
that
is
the
subject
12
of
the
construction
project
becomes
public
property
or
the
13
property
of
the
designated
exempt
entity
.
14
(2)
With
regard
to
a
written
construction
contract
with
15
a
designated
exempt
entity
described
in
paragraph
“a”
,
16
subparagraph
(2),
the
sales
price
of
building
materials,
17
supplies,
or
equipment
,
or
services
is
exempt
from
tax
by
this
18
subsection
only
to
the
extent
the
building
materials,
supplies,
19
or
equipment
,
or
services
are
completely
consumed
in
the
20
performance
of
a
construction
contract
to
construct
a
project,
21
as
defined
in
section
15J.2,
subsection
10
,
which
project
has
22
been
approved
by
the
economic
development
authority
board
in
23
accordance
with
chapter
15J
.
24
Sec.
41.
Section
423.4,
subsection
1,
Code
2020,
is
amended
25
to
read
as
follows:
26
1.
a.
For
purposes
of
this
subsection,
a
“designated
exempt
27
entity”
means
any
of
the
following:
28
(1)
A
private
nonprofit
educational
institution
in
this
29
state
,
.
30
(2)
A
nonprofit
Iowa
affiliate
of
a
nonprofit
international
31
organization
whose
primary
activity
is
the
promotion
of
the
32
construction,
remodeling,
or
rehabilitation
of
one-family
or
33
two-family
dwellings
for
low-income
families
,
.
34
(3)
A
nonprofit
private
museum
in
this
state
,
.
35
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(4)
A
tax-certifying
or
tax-levying
body
or
governmental
1
subdivision
of
the
state,
including
the
state
board
of
regents,
2
state
department
of
human
services,
state
department
of
3
transportation
,
a
.
4
(5)
A
municipally
owned
solid
waste
facility
which
sells
all
5
or
part
of
its
processed
waste
as
fuel
to
a
municipally
owned
6
public
utility
,
and
all
.
7
(6)
The
state
of
Iowa.
8
(7)
Any
political
subdivision
of
the
state.
9
(8)
All
divisions,
boards,
commissions,
agencies,
or
10
instrumentalities
of
state,
federal,
county,
or
municipal
11
government
which
do
not
have
earnings
going
to
the
benefit
of
12
an
equity
investor
or
stockholder
,
.
13
(9)
A
tribal
government
as
defined
in
section
216A.161,
14
and
any
instrumentalities
of
the
tribal
government
which
do
15
not
have
earnings
going
to
the
benefit
of
an
equity
investor
16
or
stockholder.
17
b.
A
designated
exempt
entity
may
make
application
apply
18
to
the
department
for
the
refund
of
the
sales
or
use
tax
upon
19
the
sales
price
of
all
sales
of
goods,
wares,
or
merchandise
20
building
materials,
supplies,
equipment
,
or
from
services
21
furnished
to
a
contractor,
used
in
the
fulfillment
performance
22
of
a
written
contract
with
the
state
of
Iowa,
any
political
23
subdivision
of
the
state,
or
a
division,
board,
commission,
24
agency,
or
instrumentality
of
the
state
or
a
political
25
subdivision,
a
private
nonprofit
educational
institution
in
26
this
state,
a
nonprofit
Iowa
affiliate
described
in
this
27
subsection
,
or
a
nonprofit
private
museum
in
this
state
if
the
28
property
becomes
an
integral
part
of
the
project
under
contract
29
and
at
the
completion
of
the
project
becomes
public
property,
30
is
devoted
to
educational
uses,
becomes
part
of
a
low-income
31
one-family
or
two-family
dwelling
in
the
state,
or
becomes
a
32
nonprofit
private
museum;
except
goods,
wares,
or
merchandise,
33
designated
exempt
entity
if
all
of
the
following
apply:
34
(1)
The
building
materials,
supplies,
equipment,
or
35
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services
are
completely
consumed
in
the
performance
of
a
1
construction
project
with
the
designated
entity.
2
(2)
The
property
that
is
subject
of
the
construction
project
3
becomes
public
property
or
the
property
of
an
exempt
entity.
4
(3)
The
building
materials,
supplies,
equipment,
or
5
services
furnished
which
are
not
used
in
the
performance
of
6
any
contract
in
connection
with
the
operation
of
any
municipal
7
utility
engaged
in
selling
gas,
electricity,
or
heat
to
8
the
general
public
or
in
connection
with
the
operation
of
a
9
municipal
pay
television
system;
and
except
goods,
wares,
and
10
merchandise
are
not
used
in
the
performance
of
a
contract
for
a
11
“project”
under
chapter
419
as
defined
in
that
chapter
other
12
than
goods,
wares,
or
merchandise
used
in
the
performance
of
13
a
contract
for
a
“project”
under
chapter
419
for
which
a
bond
14
issue
was
approved
by
a
municipality
prior
to
July
1,
1968,
or
15
for
which
the
goods,
wares,
or
merchandise
becomes
an
integral
16
part
of
the
project
under
contract
and
at
the
completion
of
the
17
project
becomes
public
property
or
is
devoted
to
educational
18
uses.
19
a.
c.
Such
A
contractor
shall
state
under
oath,
on
forms
20
provided
by
the
department,
the
amount
of
such
sales
of
goods,
21
wares,
or
merchandise,
or
services
furnished
and
used
in
the
22
performance
of
such
contract,
and
upon
which
sales
or
use
tax
23
has
been
paid,
and
shall
file
such
forms
with
the
governmental
24
unit,
private
nonprofit
educational
institution,
nonprofit
Iowa
25
affiliate,
or
nonprofit
private
museum
designated
exempt
entity
26
which
has
made
any
written
contract
for
performance
by
the
27
contractor.
The
forms
shall
be
filed
by
the
contractor
with
28
the
governmental
unit,
educational
institution,
nonprofit
Iowa
29
affiliate,
or
nonprofit
private
museum
designated
exempt
entity
30
before
final
settlement
is
made.
31
b.
d.
Such
governmental
unit,
educational
institution,
32
nonprofit
Iowa
affiliate,
or
nonprofit
private
museum
A
33
designated
exempt
entity
shall,
not
more
than
one
year
after
34
the
final
settlement
has
been
made,
make
application
apply
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to
the
department
for
any
refund
of
the
amount
of
the
sales
1
or
use
tax
which
shall
have
been
paid
upon
any
goods,
wares,
2
or
merchandise
building
materials,
supplies,
equipment
,
3
or
services
furnished,
the
application
to
be
made
in
the
4
manner
and
upon
forms
to
be
provided
by
the
department,
5
and
the
department
shall
forthwith
audit
the
claim
and,
if
6
approved,
issue
a
warrant
to
the
governmental
unit,
educational
7
institution,
nonprofit
Iowa
affiliate,
or
nonprofit
private
8
museum
designated
exempt
entity
in
the
amount
of
the
sales
or
9
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
the
10
contract.
11
c.
e.
Refunds
authorized
under
this
subsection
shall
accrue
12
interest
in
accordance
with
section
421.60,
subsection
2
,
13
paragraph
“e”
.
14
d.
f.
Any
contractor
who
willfully
makes
a
false
report
of
15
tax
paid
under
the
provisions
of
this
subsection
is
guilty
of
16
a
simple
misdemeanor
and
in
addition
shall
be
liable
for
the
17
payment
of
the
tax
and
any
applicable
penalty
and
interest.
18
Sec.
42.
Section
423.4,
subsection
2,
paragraphs
a
and
b,
19
Code
2020,
are
amended
to
read
as
follows:
20
a.
A
contractor
awarded
a
contract
for
a
transportation
21
construction
project
is
considered
the
consumer
of
all
building
22
materials,
building
supplies,
and
equipment
,
and
services
and
23
shall
pay
sales
tax
to
the
supplier
or
remit
consumer
use
tax
24
directly
to
the
department.
25
b.
The
contractor
is
not
required
to
file
information
with
26
the
state
department
of
transportation
stating
the
amount
of
27
goods,
wares,
or
merchandise,
or
services
rendered,
furnished,
28
or
performed
and
building
materials,
supplies,
equipment,
or
29
services
used
in
the
performance
of
the
contract
or
the
amount
30
of
sales
or
use
tax
paid.
31
Sec.
43.
Section
423.4,
subsection
6,
paragraph
a,
32
subparagraph
(1),
Code
2020,
is
amended
to
read
as
follows:
33
(1)
The
owner
of
a
collaborative
educational
facility
34
in
this
state
may
make
application
to
the
department
for
the
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refund
of
the
sales
or
use
tax
upon
the
sales
price
of
all
sales
1
of
goods,
wares,
or
merchandise
building
materials,
supplies,
2
equipment
,
or
from
services
furnished
to
a
contractor,
used
3
in
the
fulfillment
of
a
written
construction
contract
with
4
the
owner
of
the
collaborative
educational
facility
for
the
5
original
construction,
or
additions
or
modifications
to,
a
6
building
or
structure
to
be
used
as
part
of
the
collaborative
7
educational
facility.
8
Sec.
44.
Section
423.4,
subsection
6,
paragraphs
b
and
c,
9
Code
2020,
are
amended
to
read
as
follows:
10
b.
Such
A
contractor
shall
state
under
oath,
on
forms
11
provided
by
the
department,
the
amount
of
such
sales
of
goods,
12
wares,
or
merchandise
building
materials,
supplies,
equipment
,
13
or
services
furnished
and
used
in
the
performance
of
such
14
contract,
and
upon
which
sales
or
use
tax
has
been
paid,
and
15
shall
file
such
forms
with
the
owner
of
the
collaborative
16
educational
facility
which
has
made
any
written
contract
for
17
performance
by
the
contractor.
18
c.
(1)
The
owner
of
the
collaborative
educational
facility
19
shall,
not
more
than
one
year
after
the
final
settlement
has
20
been
made,
make
application
to
the
department
for
any
refund
21
of
the
amount
of
the
sales
or
use
tax
which
shall
have
been
22
paid
upon
any
goods,
wares,
or
merchandise
building
materials,
23
supplies,
equipment
,
or
services
furnished,
the
application
24
to
be
made
in
the
manner
and
upon
forms
to
be
provided
by
25
the
department,
and
the
department
shall
forthwith
audit
the
26
claim
and,
if
approved,
issue
a
warrant
to
the
owner
of
the
27
collaborative
educational
facility
in
the
amount
of
the
sales
28
or
use
tax
which
has
been
paid
to
the
state
of
Iowa
under
the
29
contract.
30
(2)
Refunds
authorized
under
this
subsection
shall
accrue
31
interest
in
accordance
with
section
421.60,
subsection
2
,
32
paragraph
“e”
.
33
Sec.
45.
Section
423.5,
subsection
1,
paragraph
b,
Code
34
2020,
is
amended
by
striking
the
paragraph.
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Sec.
46.
Section
423.29,
subsection
1,
Code
2020,
is
amended
1
to
read
as
follows:
2
1.
Every
seller
who
is
a
retailer
and
who
is
making
taxable
3
sales
of
tangible
personal
property
or
specified
digital
4
products
in
Iowa
or
who
is
a
retailer
maintaining
a
place
5
of
business
in
this
state
making
taxable
sales
of
tangible
6
personal
property
or
specified
digital
products
shall,
at
7
the
time
of
making
the
sale,
collect
the
sales
tax.
Every
8
seller
who
is
a
retailer
that
is
not
otherwise
required
to
9
collect
sales
tax
under
the
provisions
of
this
chapter
and
who
10
is
selling
tangible
personal
property
or
specified
digital
11
products
for
use
in
Iowa
shall,
at
the
time
of
making
the
sale,
12
whether
within
or
without
the
state,
collect
the
use
tax.
13
Sellers
required
to
collect
sales
or
use
tax
shall
give
to
any
14
purchaser
a
receipt
for
the
tax
collected
in
the
manner
and
15
form
prescribed
by
the
director.
16
Sec.
47.
Section
423.33,
subsection
1,
Code
2020,
is
amended
17
to
read
as
follows:
18
1.
Liability
of
purchaser
for
sales
tax
and
retailer
.
19
a.
If
a
purchaser
fails
to
pay
sales
tax
to
the
retailer
20
required
to
collect
the
tax,
then
in
addition
to
all
of
the
21
rights,
obligations,
and
remedies
provided,
the
a
use
tax
22
is
payable
by
the
purchaser
directly
to
the
department,
and
23
sections
423.31
,
423.32
,
423.37
,
423.38
,
423.39
,
423.40
,
24
423.41
,
and
423.42
apply
to
the
purchaser.
25
b.
For
failure
to
pay
the
sales
or
use
tax
as
described
26
in
paragraph
“a”
,
the
retailer
and
purchaser
are
jointly
27
liable,
unless
the
circumstances
described
in
section
29C.24,
28
subsection
3,
paragraph
“a”
,
subparagraph
(2),
section
421.60,
29
subsection
2
,
paragraph
“m”
,
section
423.34A
,
or
section
30
423.45,
subsection
4
,
paragraph
“b”
or
“e”
,
or
subsection
5
,
31
paragraph
“c”
or
“e”
,
are
applicable.
32
c.
If
the
retailer
fails
to
collect
sales
tax
at
the
time
33
of
the
transaction,
the
retailer
shall
thereafter
remit
the
34
applicable
sales
tax,
or
the
purchaser
thereafter
shall
remit
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the
applicable
use
tax.
If
the
purchaser
remits
all
applicable
1
use
tax,
the
retailer
remains
liable
for
any
local
sales
and
2
services
tax
under
chapter
423B
that
the
retailer
failed
to
3
collect.
4
Sec.
48.
REFUNDS
RELATED
TO
PRESERVE
WHITETAIL
DEER
5
HUNTING.
Refunds
of
taxes,
interest,
or
penalties
that
arise
6
from
claims
resulting
from
the
amendment
of
section
423.3,
7
subsection
3A,
for
sales
occurring
between
July
1,
2005,
8
and
the
effective
date
of
the
amendment
to
section
423.3,
9
subsection
3A,
shall
not
be
allowed,
notwithstanding
any
other
10
law
to
the
contrary.
11
Sec.
49.
LEGISLATIVE
INTENT.
12
1.
It
is
the
intent
of
the
general
assembly
that
the
section
13
of
this
division
of
this
Act
amending
section
423.29
is
a
14
conforming
amendment
consistent
with
current
state
law,
and
15
that
the
amendment
does
not
change
the
application
of
current
16
law
but
instead
reflects
current
law
both
before
and
after
the
17
enactment
of
this
division
of
this
Act.
18
2.
It
is
the
intent
of
the
general
assembly
that
the
19
addition
of
“jointly”
in
the
section
of
this
division
of
20
this
Act
amending
section
423.33
is
a
conforming
amendment
21
consistent
with
current
state
law,
and
that
the
amendment
22
does
not
change
the
application
of
current
law
but
instead
23
reflects
current
law
both
before
and
after
the
enactment
of
24
this
division
of
this
Act.
25
Sec.
50.
EFFECTIVE
DATE.
The
following,
being
deemed
of
26
immediate
importance,
take
effect
upon
enactment:
27
1.
The
section
of
this
division
of
this
Act
amending
section
28
423.3A.
29
2.
The
section
of
this
division
of
this
Act
relating
30
to
refunds
for
commercial
recreation
services
offering
an
31
opportunity
to
hunt
preserve
whitetail
deer.
32
Sec.
51.
RETROACTIVE
APPLICABILITY.
The
following
applies
33
retroactively
to
July
1,
2005:
34
The
section
of
this
division
of
this
Act
amending
section
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423.3A.
1
DIVISION
III
2
INCOME
TAX
3
Sec.
52.
Section
422.9,
subsection
3,
paragraph
c,
Code
4
2020,
is
amended
by
striking
the
paragraph
and
inserting
in
5
lieu
thereof
the
following:
6
c.
A
taxpayer
may
elect
to
waive
the
entire
carryback
period
7
with
respect
to
an
Iowa
net
operating
loss
for
any
taxable
year
8
beginning
on
or
after
January
1,
2020.
The
election
shall
be
9
made
in
the
manner
and
form
prescribed
by
the
department,
and
10
shall
be
made
by
the
due
date
for
filing
the
taxpayer’s
Iowa
11
return,
including
extensions
of
time.
After
the
election
is
12
made
for
any
taxable
year,
the
election
shall
be
irrevocable
13
for
such
taxable
year.
When
an
election
has
been
properly
14
made,
the
Iowa
net
operating
loss
shall
be
carried
forward
15
twenty
taxable
years.
16
Sec.
53.
Section
422.9,
subsection
3,
paragraph
d,
Code
17
2020,
is
amended
to
read
as
follows:
18
d.
Notwithstanding
paragraph
“a”
,
for
a
taxpayer
who
is
19
engaged
in
the
trade
or
business
of
farming
,
which
means
the
20
same
as
a
“farming
business”
as
defined
in
section
263A(e)(4)
of
21
the
Internal
Revenue
Code
,
and
has
a
farming
loss
from
farming
22
as
defined
in
section
172(b)(1)(B)
of
the
Internal
Revenue
Code
23
including
modifications
prescribed
by
rule
by
the
director,
24
the
Iowa
farming
loss
from
the
trade
or
business
of
farming
is
25
a
net
operating
loss
which
may
,
at
the
time
of
the
election
of
26
the
taxpayer,
be
carried
back
five
taxable
years
prior
to
the
27
taxable
year
of
the
loss.
The
election
shall
be
made
in
the
28
manner
and
form
prescribed
by
the
department,
and
shall
be
made
29
by
the
due
date
for
filing
the
taxpayer’s
return,
including
30
extensions
of
time.
After
the
election
is
made
for
any
taxable
31
year,
the
election
shall
be
irrevocable
for
such
taxable
year.
32
Sec.
54.
APPLICABILITY.
This
division
of
this
Act
applies
33
to
tax
years
beginning
on
or
after
January
1,
2020.
34
DIVISION
IV
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RESEARCH
ACTIVITIES
CREDIT
1
Sec.
55.
Section
15.335,
subsection
4,
paragraph
a,
Code
2
2020,
is
amended
to
read
as
follows:
3
a.
In
lieu
of
the
credit
amount
computed
in
subsection
2
,
an
4
eligible
business
may
elect
to
compute
the
credit
amount
for
5
qualified
research
expenses
incurred
in
this
state
in
a
manner
6
consistent
with
the
alternative
simplified
credit
described
in
7
section
41(c)(5)
41(c)(4)
of
the
Internal
Revenue
Code.
The
8
taxpayer
may
make
this
election
regardless
of
the
method
used
9
for
the
taxpayer’s
federal
income
tax.
The
election
made
under
10
this
paragraph
is
for
the
tax
year
and
the
taxpayer
may
use
11
another
or
the
same
method
for
any
subsequent
year.
12
Sec.
56.
Section
15.335,
subsection
4,
paragraph
b,
13
unnumbered
paragraph
1,
Code
2020,
is
amended
to
read
as
14
follows:
15
For
purposes
of
the
alternate
credit
computation
method
in
16
paragraph
“a”
,
the
credit
percentages
applicable
to
qualified
17
research
expenses
described
in
section
41(c)(5)(A)
41(c)(4)(A)
18
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
of
the
19
Internal
Revenue
Code
are
as
follows:
20
Sec.
57.
Section
422.10,
subsection
1,
paragraphs
c
and
d,
21
Code
2020,
are
amended
to
read
as
follows:
22
c.
In
lieu
of
the
credit
amount
computed
in
paragraph
“b”
,
23
subparagraph
(1),
subparagraph
division
(a),
a
taxpayer
may
24
elect
to
compute
the
credit
amount
for
qualified
research
25
expenses
incurred
in
this
state
in
a
manner
consistent
with
the
26
alternative
simplified
credit
described
in
section
41(c)(5)
27
41(c)(4)
of
the
Internal
Revenue
Code.
The
taxpayer
may
make
28
this
election
regardless
of
the
method
used
for
the
taxpayer’s
29
federal
income
tax.
The
election
made
under
this
paragraph
is
30
for
the
tax
year
and
the
taxpayer
may
use
another
or
the
same
31
method
for
any
subsequent
year.
32
d.
For
purposes
of
the
alternate
credit
computation
33
method
in
paragraph
“c”
,
the
credit
percentages
applicable
to
34
qualified
research
expenses
described
in
section
41(c)(5)(A)
35
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41(c)(4)(A)
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
1
of
the
Internal
Revenue
Code
are
four
and
fifty-five
2
hundredths
percent
and
one
and
ninety-five
hundredths
percent,
3
respectively.
4
Sec.
58.
Section
422.33,
subsection
5,
paragraphs
c
and
d,
5
Code
2020,
are
amended
to
read
as
follows:
6
c.
In
lieu
of
the
credit
amount
computed
in
paragraph
7
“a”
,
subparagraph
(1),
a
corporation
may
elect
to
compute
the
8
credit
amount
for
qualified
research
expenses
incurred
in
this
9
state
in
a
manner
consistent
with
the
alternative
simplified
10
credit
described
in
section
41(c)(5)
41(c)(4)
of
the
Internal
11
Revenue
Code.
The
taxpayer
may
make
this
election
regardless
12
of
the
method
used
for
the
taxpayer’s
federal
income
tax.
The
13
election
made
under
this
paragraph
is
for
the
tax
year
and
the
14
taxpayer
may
use
another
or
the
same
method
for
any
subsequent
15
year.
16
d.
For
purposes
of
the
alternate
credit
computation
17
method
in
paragraph
“c”
,
the
credit
percentages
applicable
to
18
qualified
research
expenses
described
in
section
41(c)(5)(A)
19
41(c)(4)(A)
and
clause
(ii)
of
section
41(c)(5)(B)
41(c)(4)(B)
20
of
the
Internal
Revenue
Code
are
four
and
fifty-five
21
hundredths
percent
and
one
and
ninety-five
hundredths
percent,
22
respectively.
23
Sec.
59.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
24
deemed
of
immediate
importance,
takes
effect
upon
enactment.
25
Sec.
60.
RETROACTIVE
APPLICABILITY.
This
division
of
this
26
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
27
beginning
on
or
after
that
date.
28
DIVISION
V
29
PARTNERSHIP
AND
PASS-THROUGH
ENTITY
AUDITS
AND
REPORTING
OF
30
FEDERAL
ADJUSTMENTS
31
Sec.
61.
Section
421.27,
subsection
2,
paragraph
c,
Code
32
2020,
is
amended
to
read
as
follows:
33
c.
(1)
The
Except
in
the
case
of
a
final
federal
34
partnership
adjustment
governed
by
subparagraph
(2),
the
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taxpayer
provides
written
notification
to
the
department
of
a
1
federal
audit
while
it
is
in
progress
and
voluntarily
files
an
2
amended
return
which
includes
a
copy
of
the
federal
document
3
showing
the
final
disposition
or
final
federal
adjustments
4
within
sixty
days
of
the
final
disposition
determination
date
5
of
the
federal
government’s
audit.
For
purposes
of
this
6
subparagraph,
“final
determination
date”
means
the
same
as
7
defined
in
section
422.25.
8
(2)
(a)
In
the
case
of
a
final
federal
partnership
9
adjustment
arising
from
a
partnership
level
audit,
all
of
the
10
following
conditions
are
satisfied:
11
(i)
The
audited
partnership
provides
written
notification
12
to
the
department
of
the
partnership
level
audit
while
it
is
13
in
progress.
14
(ii)
With
respect
to
the
audited
partnership
or
a
direct
15
partner
or
indirect
partner
of
the
audited
partnership,
the
16
audited
partnership,
direct
partner,
or
indirect
partner
17
voluntarily
and
timely
complies
with
its
reporting
and
payment
18
requirements
under
section
422.25A,
subsection
4
or
5.
19
(b)
As
used
in
this
subparagraph,
all
words
and
phrases
20
defined
in
section
422.25A
shall
have
the
same
meaning
given
21
them
by
that
section.
22
Sec.
62.
Section
422.7,
Code
2020,
is
amended
by
adding
the
23
following
new
subsection:
24
NEW
SUBSECTION
.
59.
Any
income
subtracted
from
federal
25
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
26
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
27
shall
be
added
back
in
computing
net
income
for
state
tax
28
purposes
for
the
adjustment
year.
29
Sec.
63.
Section
422.25,
subsections
1
and
2,
Code
2020,
30
are
amended
by
striking
the
subsections
and
inserting
in
lieu
31
thereof
the
following:
32
1.
a.
For
purposes
of
this
subsection:
33
(1)
“Federal
adjustment”
means
a
change
to
an
item
or
amount
34
required
to
be
determined
under
the
Internal
Revenue
Code
and
35
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the
regulations
thereunder
that
is
used
by
the
taxpayer
to
1
compute
state
tax
owed
whether
such
change
results
from
action
2
by
the
internal
revenue
service,
or
the
filing
of
a
timely
3
amended
federal
return
or
timely
federal
refund
claim.
A
4
federal
adjustment
is
positive
to
the
extent
that
it
increases
5
Iowa
taxable
income
as
determined
under
this
title
and
is
6
negative
to
the
extent
that
it
decreases
Iowa
taxable
income
7
as
determined
under
this
title.
8
(2)
“Federal
adjustments
report”
means
the
method
or
form
9
required
by
the
department
by
rule
to
report
final
federal
10
adjustments
or
final
federal
partnership
adjustments
as
defined
11
in
section
422.25A,
and
in
the
case
of
any
entity
taxed
as
a
12
partnership
or
S
corporation
for
federal
income
tax
purposes,
13
identifies
all
owners
that
hold
an
interest
directly
in
such
14
entity
and
provides
the
effect
of
the
final
federal
adjustments
15
on
such
owner’s
Iowa
income.
16
(3)
“Final
determination
date”
means
the
following:
17
(a)
Except
as
provided
in
subparagraph
divisions
(b)
and
18
(c),
for
federal
adjustments
arising
from
an
internal
revenue
19
service
audit
or
other
action
by
the
internal
revenue
service,
20
the
final
determination
date
is
the
first
day
on
which
no
21
federal
adjustments
arising
from
that
audit
or
other
action
22
remain
to
be
finally
determined,
whether
by
internal
revenue
23
service
decision
with
respect
to
which
all
rights
of
appeal
24
have
been
waived
or
exhausted,
by
agreement,
or,
if
appealed
25
or
contested,
by
a
final
decision
with
respect
to
which
all
26
rights
of
appeal
have
been
waived
or
exhausted.
For
agreements
27
required
to
be
signed
by
the
internal
revenue
service
and
the
28
taxpayer,
the
final
determination
date
is
the
date
on
which
the
29
last
party
signed
the
agreement.
30
(b)
For
federal
adjustments
arising
from
an
internal
31
revenue
service
audit
or
other
action
by
the
internal
revenue
32
service,
if
the
taxpayer
filed
as
a
member
of
a
consolidated
33
return
under
section
422.37,
the
final
determination
date
34
is
the
first
day
on
which
no
related
federal
adjustments
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arising
from
that
audit
or
other
action
remain
to
be
finally
1
determined,
as
described
in
subparagraph
division
(a),
for
the
2
entire
group.
3
(c)
For
federal
adjustments
arising
from
a
timely
filed
4
amended
federal
return
or
a
timely
filed
federal
refund
5
claim,
or
if
it
is
a
federal
adjustment
reported
on
a
timely
6
amended
federal
return
or
other
similar
report
filed
pursuant
7
to
section
6225(c)
of
the
Internal
Revenue
Code,
the
final
8
determination
date
is
the
day
on
which
the
amended
return,
9
refund
claim,
or
other
similar
report
was
filed.
10
(4)
“Final
federal
adjustment”
means
a
federal
adjustment
11
after
the
final
determination
date
for
that
federal
adjustment
12
has
passed.
13
b.
Within
three
years
after
the
return
is
filed
or
within
14
three
years
after
the
return
became
due,
including
any
15
extensions
of
time
for
filing,
whichever
time
is
the
later,
16
the
department
shall
examine
the
return
and
determine
the
tax.
17
However,
if
the
taxpayer
omits
from
income
an
amount
which
18
will,
under
the
Internal
Revenue
Code,
extend
the
statute
of
19
limitations
for
assessment
of
federal
tax
to
six
years
under
20
the
federal
law,
the
period
for
examination
and
determination
21
is
six
years.
22
c.
The
period
for
examination
and
determination
of
the
23
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
24
fraudulent
return
made
with
the
intent
to
evade
tax
or
in
the
25
case
of
a
failure
to
file
a
return.
26
d.
In
lieu
of
the
period
of
limitation
for
any
prior
year
27
for
which
an
overpayment
of
tax
or
an
elimination
or
reduction
28
of
an
underpayment
of
tax
due
for
that
prior
year
results
from
29
the
carryback
to
that
prior
year
of
a
net
operating
loss
or
30
net
capital
loss,
the
period
is
the
period
of
limitation
for
31
the
taxable
year
of
the
net
operating
loss
or
net
capital
loss
32
which
results
in
the
carryback.
33
e.
(1)
In
addition
to
the
applicable
period
of
limitation
34
for
examination
and
determination
in
paragraph
“b”
,
“c”
,
or
“d”
,
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the
department
may
make
an
examination
and
determination
at
any
1
time
within
one
year
from
the
date
of
receipt
by
the
department
2
of
a
federal
adjustments
report
with
respect
to
a
final
3
federal
adjustment
or
final
federal
partnership
adjustment
4
as
defined
in
section
422.25A
for
a
particular
tax
year.
In
5
order
to
begin
the
running
of
the
one-year
period,
the
federal
6
adjustments
report
related
to
the
final
federal
adjustment
or
7
final
federal
partnership
adjustment
shall
be
transmitted
to
8
the
department
by
the
taxpayer
in
the
form
and
manner
specified
9
by
the
department
by
rule.
10
(2)
The
department
in
its
discretion
may
adopt
rules
to
11
establish
a
de
minimis
amount
for
which
subparagraph
(1)
shall
12
not
apply
and
the
taxpayer
shall
not
be
required
to
file
a
13
federal
adjustments
report.
14
(3)
The
department
may
in
its
discretion
and
when
15
administratively
feasible
adopt
a
process
through
rule
by
16
which
a
taxpayer
may
make
estimated
payments
of
tax
expected
17
to
result
from
a
pending
internal
revenue
service
audit
18
prior
to
the
filing
of
a
federal
adjustments
report
with
the
19
department.
The
process
shall
provide
that
the
estimated
20
tax
payments
shall
be
credited
against
any
tax
liability
21
ultimately
found
to
be
due
to
the
state
from
the
internal
22
revenue
service
audit
and
will
limit
the
accrual
of
further
23
statutory
interest
on
that
liability.
The
process
shall
also
24
provide
that
if
the
estimated
tax
payments
exceed
the
final
25
tax
liability
and
statutory
interest
ultimately
determined
to
26
be
due,
the
taxpayer
is
entitled
to
a
refund
or
credit
for
27
the
excess,
without
interest,
provided
the
taxpayer
files
a
28
federal
adjustments
report,
or
a
claim
for
refund
or
credit
of
29
tax
under
section
422.73,
no
later
than
one
year
following
the
30
final
determination
date.
31
2.
a.
If
the
tax
found
due
under
subsection
1
is
greater
32
than
the
amount
paid,
the
department
shall
compute
the
amount
33
due,
together
with
interest
and
penalties
as
provided
in
34
paragraph
“b”
,
and
shall
mail
a
notice
of
assessment
to
the
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taxpayer
and,
if
applicable,
to
the
taxpayer’s
authorized
1
representative
of
the
total,
which
shall
be
computed
as
a
sum
2
certain,
with
interest
computed
to
the
last
day
of
the
month
3
in
which
the
notice
is
dated.
4
b.
In
addition
to
the
tax
or
additional
tax
determined
5
by
the
department
under
subsection
1,
the
taxpayer
shall
pay
6
interest
on
the
tax
or
additional
tax
at
the
rate
in
effect
7
under
section
421.7
for
each
month
counting
each
fraction
of
8
a
month
as
an
entire
month,
computed
from
the
date
the
return
9
was
required
to
be
filed.
In
addition
to
the
tax
or
additional
10
tax,
the
taxpayer
shall
pay
a
penalty
as
provided
in
section
11
421.27.
12
Sec.
64.
NEW
SECTION
.
422.25A
Reporting
and
treatment
of
13
certain
partnership
adjustments.
14
1.
Definitions.
As
used
in
this
section
and
sections
15
422.25B
and
422.25C,
unless
the
context
otherwise
requires:
16
a.
“Administrative
adjustment
request”
means
the
same
as
17
provided
in
section
6227
of
the
Internal
Revenue
Code.
18
b.
“Audited
partnership”
means
a
partnership
subject
19
to
a
final
federal
partnership
adjustment
resulting
from
a
20
partnership
level
audit.
21
c.
“C
corporation”
means
an
entity
that
elects
to
be
taxed
22
as
a
corporation
under
title
26,
chapter
1,
subchapter
A,
part
23
2,
of
the
Internal
Revenue
Code.
24
d.
“Corporate
partner”
means
a
C
corporation
partner
that
is
25
subject
to
tax
pursuant
to
section
422.33.
26
e.
“Direct
partner”
means
a
person
that
holds
an
interest
27
directly
in
a
partnership
or
pass-through
entity.
28
f.
“Exempt
partner”
means
a
partner
that
is
exempt
from
29
taxation
pursuant
to
section
422.34.
30
g.
“Federal
adjustments
report”
means
the
same
as
defined
31
in
section
422.25.
32
h.
“Federal
partnership
adjustment”
means
a
change
to
an
33
item
or
amount
required
to
be
determined
under
the
Internal
34
Revenue
Code
and
the
regulations
thereunder
that
is
used
by
a
35
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partnership
and
its
direct
and
indirect
partners
to
compute
1
state
tax
owed
for
the
reviewed
year
where
such
change
results
2
from
a
partnership
level
audit
or
an
administrative
adjustment
3
request.
A
federal
partnership
adjustment
is
positive
to
the
4
extent
that
it
increases
Iowa
taxable
income
as
determined
5
under
this
title
and
is
negative
to
the
extent
that
it
6
decreases
Iowa
taxable
income
as
determined
under
this
title.
7
A
federal
adjustment
reported
on
an
amended
federal
return
8
or
other
similar
report
filed
pursuant
to
section
6225(c)
of
9
the
Internal
Revenue
Code
shall
not
be
considered
a
federal
10
partnership
adjustment
for
purposes
of
this
section.
11
i.
“Federal
partnership
representative”
means
the
person
12
the
partnership
designates
for
the
taxable
year
as
the
13
partnership’s
representative,
or
the
person
the
internal
14
revenue
service
has
appointed
to
act
as
the
federal
partnership
15
representative,
pursuant
to
section
6223(a)
of
the
Internal
16
Revenue
Code
and
the
regulations
thereunder.
17
j.
“Fiduciary
partner”
means
a
partner
that
is
a
fiduciary
18
that
is
subject
to
tax
pursuant
to
sections
422.5
and
422.6.
19
k.
“Final
determination
date”
means
any
one
of
the
following
20
dates:
21
(1)
In
the
case
of
a
federal
partnership
adjustment
that
22
arises
from
a
partnership
level
audit,
the
first
day
on
which
23
no
federal
adjustments
arising
from
that
audit
remain
to
be
24
finally
determined,
whether
by
agreement,
or,
if
appealed
25
or
contested,
by
a
final
decision
with
respect
to
which
all
26
rights
of
appeal
have
been
waived
or
exhausted.
For
agreements
27
required
to
be
signed
by
the
internal
revenue
service
and
the
28
audited
partnership,
the
final
determination
date
is
the
date
29
on
which
the
last
party
signed
the
agreement.
30
(2)
In
the
case
of
a
federal
partnership
adjustment
that
31
results
from
a
timely
filed
administrative
adjustment
request,
32
the
day
on
which
the
administrative
adjustment
request
was
33
filed
with
the
internal
revenue
service.
34
l.
“Final
federal
partnership
adjustment”
means
a
federal
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partnership
adjustment
after
the
final
determination
date
for
1
that
federal
partnership
adjustment
has
passed.
2
m.
“Indirect
partner”
means
a
partner
in
a
partnership
or
3
pass-through
entity
where
such
partnership
or
pass-through
4
entity
itself
holds
an
interest
directly,
or
through
another
5
indirect
partner,
in
a
partnership
or
pass-through
entity.
6
n.
“Individual
partner”
means
a
partner
who
is
a
natural
7
person
that
is
subject
to
tax
pursuant
to
section
422.5.
8
o.
“Nonresident
partner”
means
a
partner
that
is
not
a
9
resident
partner
as
defined
in
this
subsection.
10
p.
“Partner”
means
a
person
that
holds
an
interest,
directly
11
or
indirectly,
in
a
partnership
or
pass-through
entity.
12
q.
“Partnership”
means
an
entity
subject
to
taxation
13
under
subchapter
K
of
the
Internal
Revenue
Code
and
the
14
regulations
thereunder
and
includes
but
is
not
limited
to
a
15
syndicate,
group,
pool,
joint
venture,
or
other
unincorporated
16
organization
through
or
by
means
of
which
any
business,
17
financial
operation,
or
venture
is
carried
on
and
which
is
18
not,
within
the
meaning
of
this
chapter,
a
trust,
estate,
or
19
corporation.
20
r.
“Partnership
level
audit”
means
an
examination
by
the
21
internal
revenue
service
at
the
partnership
level
pursuant
to
22
subchapter
C,
title
26,
subtitle
F,
chapter
63,
of
the
Internal
23
Revenue
Code,
as
enacted
by
the
Bipartisan
Budget
Act
of
2015,
24
Pub.
L.
No.
114-74,
and
as
amended,
which
results
in
final
25
federal
partnership
adjustments
initiated
and
made
by
the
26
internal
revenue
service.
27
s.
“Pass-through
entity”
means
an
entity,
other
than
28
a
partnership,
that
is
not
subject
to
tax
under
section
29
422.33
for
C
corporations
but
excluding
an
exempt
partner.
30
“Pass-through
entity”
includes
but
is
not
limited
to
S
31
corporations,
estates,
and
trusts,
and
other
grantor
trusts.
32
t.
“Reallocation
adjustment”
means
a
final
federal
33
partnership
adjustment
that
changes
the
shares
of
items
of
34
partnership
income,
gain,
loss,
expense,
or
credit
allocated
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to
a
partner
that
holds
an
interest
directly
in
a
partnership
1
or
pass-through
entity.
A
positive
reallocation
adjustment
2
means
the
portion
of
a
reallocation
adjustment
that
would
3
increase
Iowa
taxable
income
for
such
partners,
and
a
negative
4
reallocation
adjustment
means
the
portion
of
a
reallocation
5
adjustment
that
would
decrease
Iowa
taxable
income
for
such
6
partners.
7
u.
“Resident
partner”
means
any
of
the
following:
8
(1)
For
an
individual
partner,
a
“resident”
as
defined
in
9
section
422.4.
10
(2)
For
a
fiduciary
partner,
one
with
situs
in
Iowa.
11
(3)
For
all
other
partners,
a
partner
whose
headquarters
or
12
principal
place
of
business
is
located
in
Iowa.
13
v.
“Reviewed
year”
means
the
taxable
year
of
a
partnership
14
that
is
subject
to
a
partnership
level
audit
from
which
final
15
federal
partnership
adjustments
arise,
or
otherwise
means
the
16
taxable
year
of
the
partnership
or
pass-through
entity
that
is
17
the
subject
of
a
state
partnership
audit.
18
w.
“State
partnership
audit”
means
an
examination
by
the
19
director
at
the
partnership
or
pass-through
entity
level
which
20
results
in
adjustments
to
partnership
or
pass-through
entity
21
related
items
or
reallocations
of
income,
gains,
losses,
22
expenses,
credits,
and
other
attributes
among
such
partners
for
23
the
reviewed
year.
24
x.
“Tiered
partner”
means
any
partner
that
is
a
partnership
25
or
pass-through
entity.
26
y.
“Unrelated
business
income”
means
the
income
which
is
27
defined
in
section
512
of
the
Internal
Revenue
Code
and
the
28
regulations
thereunder.
29
2.
Application.
Partnerships
and
their
direct
partners
30
and
indirect
partners
shall
report
final
federal
partnership
31
adjustments
as
provided
in
this
section.
32
3.
State
partnership
representative.
Notwithstanding
any
33
other
law
to
the
contrary,
the
state
partnership
representative
34
for
the
reviewed
year
shall
have
the
sole
authority
to
act
on
35
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behalf
of
the
partnership
or
pass-through
entity
with
respect
1
to
an
action
required
or
permitted
to
be
taken
by
a
partnership
2
or
pass-through
entity
under
this
section
or
section
422.28
or
3
422.29
with
respect
to
final
federal
partnership
adjustments
4
arising
from
a
partnership
level
audit
or
an
administrative
5
adjustment
request,
and
its
direct
partners
and
indirect
6
partners
shall
be
bound
by
those
actions.
7
4.
Reporting
and
payment
requirements
for
audited
8
partnerships
and
their
partners
subject
to
final
federal
9
partnership
adjustments.
10
a.
Unless
an
audited
partnership
makes
the
election
in
11
subsection
5,
the
audited
partnership
shall
do
all
of
the
12
following
for
all
final
federal
partnership
adjustments
no
13
later
than
ninety
days
after
the
final
determination
date
of
14
the
audited
partnership:
15
(1)
File
a
completed
federal
adjustments
report.
16
(2)
Notify
each
direct
partner
of
such
partner’s
17
distributive
share
of
the
adjustments
in
the
manner
and
form
18
prescribed
by
the
department
by
rule.
19
(3)
File
an
amended
composite
return
under
section
422.13
20
if
one
was
originally
filed,
and
if
applicable
for
withholding
21
from
partners,
file
an
amended
withholding
report
under
22
section
422.16,
and
pay
the
additional
amount
under
this
title
23
that
would
have
been
due
had
the
final
federal
partnership
24
adjustments
been
reported
properly
as
required,
including
any
25
applicable
interest
and
penalties.
26
b.
Unless
an
audited
partnership
paid
an
amount
on
behalf
27
of
the
direct
partners
of
the
audited
partnership
pursuant
to
28
subsection
5,
all
direct
partners
of
the
audited
partnership
29
shall
do
all
of
the
following
no
later
than
one
hundred
30
eighty
days
after
the
final
determination
date
of
the
audited
31
partnership:
32
(1)
File
a
completed
federal
adjustments
report
reporting
33
the
direct
partner’s
distributive
share
of
the
adjustments
34
required
to
be
reported
to
such
partners
under
paragraph
“a”
.
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(2)
If
the
direct
partner
is
a
tiered
partner,
notify
all
1
partners
that
hold
an
interest
directly
in
the
tiered
partner
2
of
such
partner’s
distributive
share
of
the
adjustments
in
the
3
manner
and
form
prescribed
by
the
department
by
rule.
4
(3)
If
the
direct
partner
is
a
tiered
partner
and
subject
to
5
section
422.13,
file
an
amended
composite
return
under
section
6
422.13
if
such
return
was
originally
filed,
and
if
applicable
7
for
withholding
from
partners
file
an
amended
withholding
8
report
under
section
422.16
if
one
was
originally
required
to
9
be
filed.
10
(4)
Pay
any
additional
amount
under
this
title
that
would
11
have
been
due
had
the
final
federal
partnership
adjustments
12
been
reported
properly
as
required,
including
any
applicable
13
penalty
and
interest.
14
c.
Unless
a
partnership
or
tiered
partner
paid
an
amount
on
15
behalf
of
the
partners
pursuant
to
subsection
5,
each
indirect
16
partner
shall
do
all
of
the
following:
17
(1)
Within
ninety
days
after
the
time
for
filing
and
18
furnishing
statements
to
tiered
partners
and
their
partners
19
as
established
by
section
6226
of
the
Internal
Revenue
Code
20
and
the
regulations
thereunder,
file
a
completed
federal
21
adjustments
report.
22
(2)
If
the
indirect
partner
is
a
tiered
partner,
within
23
ninety
days
after
the
time
for
filing
and
furnishing
statements
24
to
tiered
partners
and
their
partners
as
established
by
25
section
6226
of
the
Internal
Revenue
Code
and
the
regulations
26
thereunder
but
within
sufficient
time
for
all
indirect
partners
27
to
also
complete
the
requirements
of
this
subsection,
notify
28
all
of
the
partners
that
hold
an
interest
directly
in
the
29
tiered
partner
of
such
partner’s
distributive
share
of
the
30
adjustments
in
the
manner
and
form
prescribed
by
the
department
31
by
rule.
32
(3)
Within
ninety
days
after
the
time
for
filing
and
33
furnishing
statements
to
tiered
partners
and
their
partners
34
as
established
by
section
6226
of
the
Internal
Revenue
Code
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and
the
regulations
thereunder,
if
the
indirect
partner
1
is
a
tiered
partner
and
subject
to
section
422.13,
file
an
2
amended
composite
return
under
section
422.13
if
such
return
3
was
originally
filed,
and
if
applicable
for
withholding
from
4
partners,
file
an
amended
withholding
report
under
section
5
422.16
if
one
was
originally
required
to
be
filed.
6
(4)
Within
ninety
days
after
the
time
for
filing
and
7
furnishing
statements
to
tiered
partners
and
the
partners
of
8
the
tiered
partners
as
established
by
section
6226
of
the
9
Internal
Revenue
Code
and
the
regulations
thereunder,
pay
any
10
additional
amount
due
under
this
title,
including
any
penalty
11
and
interest
that
would
have
been
due
had
the
final
federal
12
partnership
adjustments
been
reported
properly
as
required.
13
5.
Election
for
partnership
or
tiered
partners
to
pay.
14
a.
An
audited
partnership,
or
a
tiered
partner
that
receives
15
a
notification
of
a
final
federal
partnership
adjustment
under
16
subsection
4,
may
make
an
election
to
pay
as
provided
under
17
this
subsection.
18
b.
An
audited
partnership
or
tiered
partner
makes
an
19
election
to
pay
under
this
subsection
by
filing
a
completed
20
federal
adjustments
report,
notifying
the
department
in
the
21
manner
and
form
prescribed
by
the
department
that
it
is
making
22
the
election
under
this
subsection,
notifying
each
of
the
23
direct
partners
of
such
partner’s
distributive
share
of
the
24
adjustments,
and
paying
on
behalf
of
its
partners
an
amount
25
calculated
in
paragraph
“c”
,
including
any
applicable
penalty
26
and
interest.
These
requirements
shall
all
be
fulfilled
within
27
one
of
the
following
time
periods:
28
(1)
For
the
audited
partnership,
no
later
than
ninety
days
29
after
the
final
determination
date
of
the
audited
partnership.
30
(2)
For
a
direct
tiered
partner,
no
later
than
one
hundred
31
eighty
days
after
the
final
determination
date
of
the
audited
32
partnership.
33
(3)
For
an
indirect
tiered
partner,
within
ninety
days
34
after
the
time
for
filing
and
furnishing
statements
to
a
35
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tiered
partner
and
the
partner
of
the
tiered
partner,
as
1
established
by
section
6226
of
the
Internal
Revenue
Code
and
2
the
regulations
thereunder.
3
c.
The
amount
due
under
this
subsection
from
an
audited
4
partnership
or
tiered
partner
shall
be
calculated
as
follows:
5
(1)
Exclude
from
final
federal
partnership
adjustments
and
6
any
positive
reallocation
adjustments
the
distributive
share
7
of
such
adjustments
reported
to
an
exempt
partner
that
holds
8
an
interest
directly
in
the
audited
partnership
if
the
audited
9
partnership
is
making
the
election
or
that
holds
an
interest
10
directly
in
the
tiered
partner
if
the
tiered
partner
is
making
11
the
election,
but
only
to
the
extent
the
distributive
share
is
12
not
unrelated
business
income.
13
(2)
Determine
the
total
distributive
share
of
all
final
14
federal
partnership
adjustments
and
positive
reallocation
15
adjustments
as
modified
by
this
title
that
are
reported
to
16
corporate
partners,
and
to
exempt
partners
to
the
extent
the
17
distributive
share
is
unrelated
business
income,
and
allocate
18
and
apportion
such
adjustments
as
provided
in
section
422.33
19
at
the
partnership
or
tiered
partner
level,
and
multiply
the
20
resulting
amount
by
the
maximum
state
corporate
income
tax
rate
21
pursuant
to
section
422.33
for
the
reviewed
year.
22
(3)
Determine
the
total
distributive
share
of
all
final
23
federal
partnership
adjustments
and
positive
reallocation
24
adjustments
as
modified
by
this
title
that
are
reported
to
25
nonresident
individual
partners
and
nonresident
fiduciary
26
partners
and
allocate
and
apportion
such
adjustments
as
27
provided
in
section
422.33
at
the
partnership
or
tiered
28
partner
level,
and
multiply
the
resulting
amount
by
the
maximum
29
individual
income
tax
rate
pursuant
to
section
422.5A
for
the
30
reviewed
year.
31
(4)
For
the
total
distributive
share
of
all
final
federal
32
partnership
adjustments
and
positive
reallocation
adjustments
33
as
modified
by
this
title
that
are
reported
to
tiered
partners:
34
(a)
Determine
the
amount
of
such
adjustments
which
are
of
a
35
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type
that
would
be
subject
to
sourcing
to
Iowa
under
section
1
422.8,
subsection
2,
paragraph
“a”
,
as
a
nonresident,
and
then
2
determine
the
portion
of
this
amount
that
would
be
sourced
to
3
Iowa
under
those
provisions
as
if
the
tiered
partner
were
a
4
nonresident.
5
(b)
Determine
the
amount
of
such
adjustments
which
are
of
6
a
type
that
would
not
be
subject
to
sourcing
to
Iowa
under
7
section
422.8,
subsection
2,
paragraph
“a”
,
as
a
nonresident.
8
(c)
Determine
the
portion
of
the
amount
in
subparagraph
9
division
(b)
that
can
be
established,
as
prescribed
by
the
10
department
by
rule,
to
be
properly
allocable
to
indirect
11
partners
that
are
nonresident
partners
or
other
partners
not
12
subject
to
tax
on
the
adjustments.
13
(d)
Multiply
the
total
of
the
amounts
determined
in
14
subparagraph
divisions
(a)
and
(b),
reduced
by
any
amount
15
determined
in
subparagraph
division
(c),
by
the
highest
16
individual
income
tax
rate
pursuant
to
section
422.5A
for
the
17
reviewed
year.
18
(5)
For
the
total
distributive
share
of
all
final
federal
19
partnership
adjustments
and
positive
reallocation
adjustments
20
as
modified
by
this
title
that
are
reported
to
resident
21
individual
partners
and
resident
fiduciary
partners,
multiply
22
that
amount
by
the
highest
individual
income
tax
rate
pursuant
23
to
section
422.5A
for
the
reviewed
year.
24
(6)
Total
the
amounts
computed
pursuant
to
subparagraphs
25
(2)
through
(5)
and
calculate
any
interest
and
penalty
as
26
provided
under
this
title.
Notwithstanding
any
provision
of
27
law
to
the
contrary,
interest
and
penalties
on
the
amount
due
28
by
the
audited
partnership
or
tiered
partner
shall
be
computed
29
from
the
day
after
the
due
date
of
the
reviewed
year
return
30
without
extension,
and
shall
be
imposed
as
if
the
audited
31
partnership
or
tiered
partner
was
required
to
pay
tax
or
show
32
tax
due
on
the
original
return
for
the
reviewed
year.
33
d.
Adjustments
subject
to
the
election
in
this
subsection
34
do
not
include
any
adjustments
arising
from
an
administrative
35
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adjustment
request.
1
e.
An
audited
partnership
or
tiered
partner
not
otherwise
2
subject
to
any
reporting
or
payment
obligation
to
Iowa
that
3
makes
an
election
under
this
subsection
consents
to
be
subject
4
to
the
Iowa
laws
related
to
reporting,
assessment,
collection,
5
and
payment
of
Iowa
tax,
interest,
and
penalties
calculated
6
under
the
election.
7
6.
Modified
reporting
and
payment
method.
The
department
may
8
adopt
procedures
for
an
audited
partnership
or
tiered
partner
9
to
enter
into
an
agreement
with
the
department
to
use
an
10
alternative
reporting
and
payment
method,
including
applicable
11
time
requirements
or
any
other
provision
of
this
section.
The
12
audited
partnership
or
tiered
partner
must
demonstrate
that
13
the
requested
method
will
reasonably
provide
for
the
reporting
14
and
payment
of
taxes,
penalties,
and
interest
due
under
the
15
provisions
of
this
section.
Application
for
approval
of
an
16
alternative
reporting
and
payment
method
must
be
made
by
the
17
audited
partnership
or
tiered
partner
within
the
time
for
18
making
an
election
to
pay
under
subsection
5
and
in
the
manner
19
prescribed
by
the
department.
Approval
of
such
an
alternative
20
reporting
and
payment
method
shall
be
at
the
discretion
of
the
21
department.
22
7.
Effect
of
election
by
partnership
or
tiered
partner
and
23
payment
of
amount
due.
24
a.
The
election
made
under
subsection
5
is
irrevocable,
25
unless
in
the
discretion
of
the
director,
the
director
26
determines
otherwise.
27
b.
The
amount
determined
in
subsection
5,
when
properly
28
reported
and
paid
by
the
audited
partnership
or
tiered
partner,
29
shall
be
treated
as
paid
on
behalf
of
the
partners
of
such
30
audited
partnership
or
tiered
partner
on
the
same
final
federal
31
partnership
adjustments,
provided,
however,
that
no
partner
may
32
take
any
deduction
or
credit
for
the
amount,
claim
a
refund
of
33
the
amount,
or
include
the
amount
on
such
partner’s
Iowa
return
34
in
any
manner.
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c.
In
the
event
another
state
offers
to
an
audited
1
partnership
or
tiered
partner
a
similar
election
to
pay
state
2
tax
resulting
from
final
federal
partnership
adjustments,
3
nothing
in
this
subsection
shall
prohibit
a
resident
who
holds
4
an
interest
directly
in
that
audited
partnership
or
tiered
5
partner,
as
the
case
may
be,
from
claiming
a
credit
for
taxes
6
paid
by
the
resident
to
another
state
under
section
422.8,
7
subsection
1,
for
any
amounts
paid
by
the
audited
partnership
8
or
tiered
partner
on
such
resident
partner’s
behalf
to
another
9
state,
provided
such
payment
otherwise
meets
the
requirements
10
of
section
422.8,
subsection
1.
11
d.
Nothing
in
this
section
shall
prohibit
the
department
12
from
assessing
direct
partners
and
indirect
partners
for
taxes
13
they
owe
in
the
event
that
an
audited
partnership
or
tiered
14
partner
fails
to
timely
make
any
report
or
payment
required
by
15
this
section
for
any
reason.
16
8.
Assessments
of
additional
Iowa
income
tax,
interest,
and
17
penalties,
and
claims
for
refund,
arising
from
final
federal
18
partnership
adjustments.
19
a.
The
department
shall
assess
additional
Iowa
income
20
tax,
interest,
and
penalties
arising
from
final
federal
21
partnership
adjustments
in
the
same
manner
as
provided
in
22
this
title
unless
a
different
treatment
is
provided
by
this
23
subsection.
Since
final
federal
partnership
adjustments
are
24
determined
at
the
audited
partnership
level,
any
assessment
25
issued
to
partners
shall
not
be
appealable
by
the
partner.
26
The
department
may
assess
any
taxes,
including
on-behalf-of
27
amounts,
interest,
and
penalties
arising
from
the
final
federal
28
partnership
adjustments
if
it
issues
a
notice
of
assessment
to
29
the
audited
partnership,
tiered
partner,
or
other
direct
or
30
indirect
partner
on
or
before
the
expiration
of
the
applicable
31
limitations
period
specified
in
section
422.25.
32
b.
In
addition
to
the
period
for
claiming
a
refund
or
credit
33
provided
in
section
422.73,
subsection
1,
paragraph
“a”
,
and
34
notwithstanding
section
422.73,
subsection
1,
paragraph
“b”
,
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a
partnership,
tiered
partner,
or
other
direct
or
indirect
1
partner,
as
the
case
may
be,
may
file
a
claim
for
refund
of
2
Iowa
income
tax
arising
directly
or
indirectly
from
a
final
3
federal
partnership
adjustment
arising
from
a
partnership
level
4
audit
on
or
before
the
date
which
is
one
year
from
the
date
the
5
federal
adjustments
report
for
that
final
federal
partnership
6
adjustment
was
required
to
be
filed
by
such
person
under
this
7
section.
8
9.
Rules.
The
department
may
adopt
any
rules
pursuant
to
9
chapter
17A
to
implement
this
section.
10
Sec.
65.
NEW
SECTION
.
422.25B
State
partnership
11
representative.
12
1.
As
used
in
this
section,
all
words
and
phrases
defined
13
in
section
422.25A
shall
have
the
same
meaning
given
them
by
14
that
section.
15
2.
The
state
partnership
representative
for
the
reviewed
16
year
for
a
partnership
shall
be
the
partnership’s
federal
17
partnership
representative
with
respect
to
an
action
required
18
or
permitted
to
be
taken
by
a
state
partnership
representative
19
under
this
chapter
for
a
reviewed
year,
unless
the
partnership
20
designates
in
writing
another
person
as
the
state
partnership
21
representative
as
provided
in
subsection
3.
The
state
22
partnership
representative
for
the
reviewed
year
for
a
23
pass-through
entity
is
the
person
designated
in
subsection
3.
24
3.
The
department
may
establish
reasonable
qualifications
25
for
a
person
to
be
a
state
partnership
representative.
If
26
a
partnership
desires
to
designate
a
person
other
than
the
27
federal
partnership
representative,
the
partnership
shall
28
designate
such
person
in
the
manner
and
form
prescribed
by
the
29
department.
A
pass-through
entity
shall
designate
a
person
as
30
the
state
partnership
representative
in
the
manner
and
form
31
prescribed
by
the
department.
A
partnership
or
pass-through
32
entity
shall
be
allowed
to
change
such
designation
by
notifying
33
the
department
at
the
time
the
change
occurs
in
the
manner
and
34
form
prescribed
by
the
department.
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4.
The
department
may
adopt
any
rules
pursuant
to
chapter
1
17A
to
implement
this
section.
2
Sec.
66.
NEW
SECTION
.
422.25C
Partnership
and
pass-through
3
entity
audits
and
examinations
——
consistent
treatment
of
4
entity-level
items
——
binding
actions
——
amended
returns.
5
1.
As
used
in
this
section,
all
words
and
phrases
defined
6
in
section
422.25A
shall
have
the
same
meaning
given
them
by
7
that
section.
8
2.
For
tax
years
beginning
on
or
after
January
1,
2020,
any
9
adjustments
to
a
partnership’s
or
pass-through
entity’s
items
10
of
income,
gain,
loss,
expense,
or
credit,
or
an
adjustment
11
to
such
items
allocated
to
a
partner
that
holds
an
interest
12
in
a
partnership
or
pass-through
entity
for
the
reviewed
year
13
by
the
department
as
a
result
of
a
state
partnership
audit,
14
shall
be
determined
at
the
partnership
level
or
pass-through
15
entity
level
in
the
same
manner
as
provided
by
section
6221(a)
16
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
17
unless
a
different
treatment
is
specifically
provided
in
this
18
title.
The
provisions
of
sections
6222,
6223,
and
6227
of
the
19
Internal
Revenue
Code
and
the
regulations
thereunder
shall
also
20
apply
to
a
partnership
or
pass-through
entity
and
its
direct
21
or
indirect
partners
in
the
same
manner
as
provided
in
such
22
sections
unless
a
different
treatment
is
specifically
provided
23
in
this
title.
For
purposes
of
applying
such
sections,
due
24
account
shall
be
made
for
differences
in
federal
and
Iowa
25
terminology.
The
adjustment
provided
by
section
6221(a)
of
26
the
Internal
Revenue
Code
shall
be
determined
as
provided
in
27
such
section
but
shall
be
based
on
Iowa
taxable
income
or
28
other
tax
attributes
of
the
partnership
as
determined
pursuant
29
to
this
chapter
for
the
reviewed
year.
The
department
shall
30
issue
a
notice
of
adjustment
to
the
partnership
or
pass-through
31
entity.
Such
notice
shall
be
treated
as
an
assessment
for
32
the
purposes
of
section
422.25,
and
the
notice
shall
be
33
appealable
by
the
partnership
or
pass-through
entity
pursuant
34
to
sections
422.28
and
422.29
and
shall
be
issued
within
the
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time
period
provided
by
section
422.25.
Once
the
adjustments
1
to
partnership-related
or
pass-through
entity-related
items
or
2
reallocations
of
income,
gains,
losses,
expenses,
credits,
and
3
other
attributes
among
such
partners
for
the
reviewed
year
are
4
finally
determined,
the
partnership
or
pass-through
entity
and
5
any
direct
partners
or
indirect
partners
shall
then
be
subject
6
to
the
provisions
of
section
422.25,
subsection
1,
paragraph
7
“e”
,
and
section
422.25A
in
the
same
manner
as
if
the
state
8
partnership
audit
were
a
federal
partnership
level
audit,
and
9
as
if
the
final
state
partnership
audit
adjustment
were
a
10
final
federal
partnership
adjustment.
The
penalty
exception
11
in
section
421.27,
subsection
2,
paragraph
“c”
,
shall
not
apply
12
to
a
state
partnership
audit.
13
3.
The
state
partnership
representative
for
the
reviewed
14
year
as
determined
under
section
422.25B
shall
have
the
sole
15
authority
to
act
on
behalf
of
the
partnership
or
pass-through
16
entity
with
respect
to
an
action
required
or
permitted
to
17
be
taken
by
a
partnership
or
pass-through
entity
under
this
18
section,
including
proceedings
under
section
422.28
or
422.29,
19
and
the
partnership’s
or
pass-through
entity’s
direct
partners
20
and
indirect
partners
shall
be
bound
by
those
actions.
21
4.
If
the
department,
the
partnership
or
pass-through
22
entity,
and
the
partnership
or
pass-through
entity
owners
23
agree,
the
provisions
of
this
section
may
be
applied
to
tax
24
years
beginning
before
January
1,
2020.
25
5.
The
department
may
adopt
rules
pursuant
to
chapter
17A
to
26
implement
this
section.
27
Sec.
67.
Section
422.35,
Code
2020,
is
amended
by
adding
the
28
following
new
subsection:
29
NEW
SUBSECTION
.
26.
Any
income
subtracted
from
federal
30
taxable
income
for
an
adjustment
year
pursuant
to
section
6225
31
of
the
Internal
Revenue
Code
and
the
regulations
thereunder
32
shall
be
added
back
in
computing
net
income
for
state
tax
33
purposes
for
the
adjustment
year.
34
Sec.
68.
Section
422.39,
Code
2020,
is
amended
by
striking
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the
section
and
inserting
in
lieu
thereof
the
following:
1
422.39
Statutes
applicable
to
corporations
and
corporation
2
tax.
3
All
the
provisions
of
sections
422.24
through
422.27
4
of
division
II,
respecting
payment,
collection,
reporting,
5
examination,
and
assessment,
shall
apply
in
respect
to
a
6
corporation
subject
to
the
provisions
of
this
division
and
to
7
the
tax
due
and
payable
by
a
corporation
taxable
under
this
8
division.
This
includes
but
is
not
limited
to
a
corporation
9
that
is
a
pass-through
entity
as
defined
in
section
422.25A.
10
Sec.
69.
Section
422.73,
Code
2020,
is
amended
by
adding
the
11
following
new
subsection:
12
NEW
SUBSECTION
.
01.
For
purposes
of
this
section,
“federal
13
adjustment”
,
“final
determination
date”
,
and
“final
federal
14
adjustment”
all
mean
the
same
as
defined
in
section
422.25.
15
Sec.
70.
Section
422.73,
subsections
1
and
3,
Code
2020,
are
16
amended
to
read
as
follows:
17
1.
a.
If
it
appears
that
an
amount
of
tax,
penalty,
or
18
interest
has
been
paid
which
was
not
due
under
division
II
,
19
III
or
V
of
this
chapter
,
then
that
amount
shall
be
credited
20
against
any
tax
due
on
the
books
of
the
department
by
the
21
person
who
made
the
excessive
payment,
or
that
amount
shall
be
22
refunded
to
the
person
or
with
the
person’s
approval,
credited
23
to
tax
to
become
due.
A
claim
for
refund
or
credit
that
has
24
not
been
filed
with
the
department
within
three
years
after
25
the
return
upon
which
a
refund
or
credit
claimed
became
due,
26
or
within
one
year
after
the
payment
of
the
tax
upon
which
a
27
refund
or
credit
is
claimed
was
made,
whichever
time
is
the
28
later,
shall
not
be
allowed
by
the
director.
If,
as
a
result
of
29
a
carryback
of
a
net
operating
loss
or
a
net
capital
loss,
the
30
amount
of
tax
in
a
prior
period
is
reduced
and
an
overpayment
31
results,
the
claim
for
refund
or
credit
of
the
overpayment
32
shall
be
filed
with
the
department
within
the
three
years
after
33
the
return
for
the
taxable
year
of
the
net
operating
loss
or
34
net
capital
loss
became
due.
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b.
Notwithstanding
the
period
of
limitation
specified
in
1
paragraph
“a”
,
the
taxpayer
shall
have
six
months
one
year
from
2
the
day
of
final
disposition
final
determination
date
of
any
3
income
tax
matter
between
the
taxpayer
and
the
internal
revenue
4
service
final
federal
adjustment
arising
from
an
internal
5
revenue
service
audit
or
other
similar
action
by
the
internal
6
revenue
service
with
respect
to
the
particular
tax
year
to
7
claim
an
income
tax
refund
or
credit
arising
from
that
final
8
federal
adjustment
.
9
3.
The
department
shall
enter
into
an
agreement
with
the
10
internal
revenue
service
for
the
transmission
of
federal
income
11
tax
reports
on
individuals
required
to
file
an
Iowa
income
tax
12
return
who
have
been
involved
in
an
income
tax
matter
with
the
13
internal
revenue
service.
After
final
disposition
the
final
14
determination
date
of
the
income
tax
matter
that
involves
a
15
final
federal
adjustment
between
the
taxpayer
and
the
internal
16
revenue
service,
the
department
shall
determine
whether
the
17
individual
is
due
a
state
income
tax
refund
as
a
result
of
that
18
final
disposition
of
federal
adjustment
from
such
income
tax
19
matter.
If
the
individual
is
due
a
state
income
tax
refund,
20
the
department
shall
notify
the
individual
within
thirty
days
21
and
request
the
individual
to
file
a
claim
for
refund
or
credit
22
with
the
department.
23
Sec.
71.
APPLICABILITY.
This
division
of
this
Act
applies
24
to
federal
adjustments
and
federal
partnership
adjustments
that
25
have
a
final
determination
date
after
the
effective
date
of
26
this
division
of
this
Act.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
relates
to
state
taxation
and
related
laws
of
31
the
state,
including
the
administration
by
the
department
of
32
revenue
(department)
of
certain
tax
credits
and
refunds,
income
33
taxes,
moneys
and
credits
taxes,
sales
and
use
taxes,
and
by
34
modifying
provisions
relating
to
reinstatement
of
business
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entities
and
to
the
assessment
and
valuation
of
property.
The
1
bill
is
organized
into
divisions.
2
DIVISION
I
——
ADMINISTRATION
AND
PENALTY
PROVISIONS.
3
The
amendment
to
Code
section
336.603(5)
provides
that
the
4
governing
board
of
a
county
land
record
information
system
may
5
enter
into
an
agreement
with
a
public
agency
to
provide
access
6
to
electronic
documents
or
records
on
a
batch
basis.
The
bill
7
allows
access
to
electronic
documents
to
be
provided
for
a
fee.
8
The
bill
prohibits
any
other
types
of
agreements
between
the
9
board
and
the
public
agency
except
as
otherwise
provided
in
the
10
bill.
11
The
amendment
to
Code
section
421.6
enhances
the
readability
12
of
the
Code
section
by
including
in
the
definition
of
“return”
13
the
moneys
and
credits
tax
turn
administered
by
the
department
14
under
Code
section
533.329.
15
The
bill
enacts
new
Code
section
421.17(36)
which
permits
16
the
director
of
revenue
to
enter
into
Code
chapter
28E
17
agreements
with
the
state
fair
or
a
county
or
district
fair
18
to
collect
and
remit
sales
taxes
and
fees
from
sellers
making
19
retail
sales
on
the
grounds
owned
by
the
fair
or
through
events
20
conducted
by
the
fair.
21
The
amendment
to
Code
section
421.27(1)
provides
that
in
22
the
case
of
a
specified
business
with
no
tax
shown
due
or
23
required
to
be
shown
due
that
fails
to
timely
file
their
24
income
tax
return
or
information
return
shall
pay
the
greater
25
of
the
following
penalty
amounts:
$200;
or
an
amount
equal
26
to
10
percent
of
the
imputed
Iowa
liability
of
the
specified
27
business,
not
to
exceed
$25,000.
28
The
amendment
to
Code
section
421.27(1)
provides
that
the
29
penalty
for
individuals
or
specified
businesses
that
fail
to
30
timely
file
a
return
may
be
waived
under
certain
circumstances.
31
The
amendment
to
Code
section
421.27(4)
provides
that
the
32
penalty
for
a
specified
business
that
willfully
fails
to
file
a
33
return
with
no
tax
shown
due
or
required
to
be
shown
due
with
34
the
intent
to
evade
such
a
filing
requirement
or
reporting
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Iowa-source
income,
the
penalty
imposed
shall
be
the
greater
1
of
$1,500
or
an
amount
equal
to
75
percent
of
the
imputed
Iowa
2
liability
of
the
specified
business.
3
The
amendment
to
Code
section
421.27(4)
expands
penalty
4
provisions
by
providing
that
a
person
who
willfully
fails
to
5
file
a
return
or
deposit
form
with
intent
to
evade
a
filing
6
requirement
shall
be
subject
to
a
penalty
of
75
percent
of
the
7
tax
added
to
the
amount
of
tax
shown
due
or
required
to
be
shown
8
due,
in
lieu
of
other
penalties.
9
The
amendment
to
Code
section
421.27(6)
makes
numerous
10
changes
to
the
criminal
offense
of
fraudulent
practice
11
by
expanding
the
criminal
offense
to
include
a
person
who
12
willfully
makes
a
false
application
for
an
exemption
or
benefit
13
with
the
intent
to
receive
the
exemption
or
benefit
to
which
14
the
person
is
not
entitled.
15
The
amendment
to
Code
section
421.27(6)
also
expands
the
16
fraudulent
practice
criminal
offense
to
include
when
a
person
17
willfully
submits
any
false
information,
document,
or
document
18
containing
false
information
in
support
of
an
application
19
for
a
refund,
credit,
exemption,
reimbursement,
rebate,
or
20
other
payment
or
benefit
with
the
intent
to
evade
taxes;
21
and
to
include
when
a
person
willfully
submits
any
false
22
information,
document,
or
document
containing
false
information
23
in
support
of
an
application
for
a
refund,
credit,
exemption,
24
reimbursement,
rebate,
or
other
payment
or
benefit
to
which
the
25
person
is
not
entitled.
26
The
sections
of
this
division
amending
Code
section
421.27
27
apply
to
tax
years
beginning
on
or
after
January
1,
2022.
28
A
person
who
commits
fraudulent
practice
under
Code
section
29
421.76(6),
in
addition
to
the
criminal
penalties,
is
liable
for
30
a
penalty
equal
to
75
percent
of
the
refund,
credit,
exemption,
31
reimbursement,
rebate,
or
other
payment
or
benefit
being
32
fraudulently
claimed.
33
The
bill
enacts
new
Code
section
421.27(8)
which
defines
34
“imputed
Iowa
liability”
and
“specified
business”.
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The
bill
enacts
new
Code
section
421.27(9)
by
adding
an
1
additional
penalty
under
Code
section
421.27
in
the
amount
2
of
$1,000
if
a
taxpayer
fails
to
file
a
tax
return
within
90
3
days
of
written
notice
by
the
department
that
the
taxpayer
is
4
required
to
file
such
a
return.
5
The
bill
enacts
new
Code
section
421.27A
by
creating
a
6
criminal
offense
for
perjury.
Currently,
a
different
perjury
7
criminal
offense
exists
in
Code
section
720.2.
A
person
8
commits
perjury
under
the
following
circumstances
in
the
bill:
9
the
person
makes
a
document
containing
false
information
in
10
support
of
an
application
for
refund,
credit,
exemption,
11
reimbursement,
rebate,
or
other
payment
or
benefit
with
intent
12
to
evade
tax;
the
person
makes
a
document
containing
false
13
information
with
intent
to
unlawfully
receive
a
refund,
credit,
14
exemption,
reimbursement,
rebate,
or
other
payment
or
benefit,
15
to
which
the
person
is
not
entitled;
the
person
knowingly
makes
16
any
false
affidavit;
the
person
knowingly
swears
or
affirms
17
falsely
to
any
matter
or
thing
required
by
the
terms
of
title
X
18
of
the
Code
(financial
resources)
to
be
sworn
to
or
affirmed.
19
A
person
who
commits
the
criminal
offense
of
perjury
under
new
20
Code
section
421.27A
commits
a
class
“D”
felony.
A
class
“D”
21
felony
is
punishable
by
confinement
for
no
more
than
five
years
22
and
a
fine
of
at
least
$750
but
not
more
than
$7,500.
23
The
bill
enacts
new
Code
section
421.59
relating
to
a
24
power
of
attorney
or
other
authority
to
act
on
behalf
of
the
25
taxpayer.
The
bill
formalizes
a
process
for
the
following
26
persons
to
act
and
receive
information
on
behalf
of
and
27
exercise
all
of
the
rights
of
a
taxpayer,
regardless
of
whether
28
a
power
of
attorney
has
been
filed
with
the
department:
a
29
guardian,
conservator,
or
custodian
appointed
by
the
court;
a
30
receiver
appointed
pursuant
to
Code
chapter
680;
an
individual
31
who
has
been
named
as
an
authorized
representative
on
a
32
fiduciary
return
filed
under
Code
section
422.14
(fiduciary
33
return)
or
Code
chapter
450
(inheritance
tax);
an
individual
34
holding
a
title
or
position
within
a
corporation,
association,
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partnership,
or
other
business
entity;
a
licensed
attorney
1
who
has
appeared
on
behalf
of
the
taxpayer
or
the
taxpayer’s
2
estate;
and
a
parent
or
legal
guardian
of
the
taxpayer
who
has
3
not
reached
the
age
of
majority.
4
New
Code
section
421.59
also
authorizes
the
department
to
5
enter
into
a
memorandum
of
understanding
with
the
taxpayer
6
for
each
employee,
officer,
or
member
of
a
third-party
entity
7
engaged
with
or
otherwise
hired
by
a
taxpayer
to
manage
8
the
taxpayer’s
tax
matters,
in
lieu
of
requiring
a
power
of
9
attorney
for
each
person.
10
The
bill
enacts
new
Code
section
421.60(11)
which
allows
a
11
taxpayer
to
elect
to
receive
correspondence
electronically
from
12
the
department
rather
than
by
regular
mail.
13
The
amendments
to
Code
section
421.62
provide
that
the
14
regulations
relating
to
tax
return
preparers
apply
to
an
15
income
tax
return
or
claim
or
refund
under
Code
chapter
422
16
(individual,
corporate,
and
franchise
taxes),
but
do
not
apply
17
to
withholding
returns
under
Code
section
422.16.
18
The
amendment
to
Code
section
421.64
enhances
the
19
readability
of
the
Code
section.
20
The
amendment
to
Code
section
422.20(1)
adds
an
intent
21
element
“willfully
or
recklessly”
to
the
criminal
offense
22
related
to
the
unlawful
disclosure
of
tax
return
information
23
by
state
personnel
or
former
state
personnel.
A
person
who
24
commits
a
violation
under
Code
section
422.20(1)
commits
a
25
serious
misdemeanor.
A
serious
misdemeanor
is
punishable
by
26
confinement
for
no
more
than
one
year
and
a
fine
of
at
least
27
$315
but
not
more
than
$1,875.
28
The
amendment
to
Code
section
422.20(3)
provides
that
tax
29
return
information
may
be
disclosed
to
authorized
individuals
30
pursuant
to
new
Code
section
421.59
created
in
the
bill.
31
The
bill
enacts
new
Code
section
422.20(3A)
permitting
the
32
director
of
revenue
to
disclose
the
tax
return
information
of
33
a
partnership,
limited
liability
company,
or
S
corporation
to
34
a
person
who
was
a
partner,
shareholder,
or
member
of
such
an
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entity
during
any
part
of
the
period
covered
by
the
tax
return.
1
The
bill
enacts
new
Code
section
422.20(3B)
specifying
the
2
information
the
department
is
required
to
redact
prior
to
3
the
disclosure
of
the
record
in
an
appeal
or
contested
case.
4
The
bill
specifies
the
department
may
also
redact
other
tax
5
information
from
the
record
in
an
appeal
or
contested
case,
if
6
the
taxpayer
proves
by
clear
and
convincing
evidence
that
the
7
release
of
the
tax
information
would
disclose
a
trade
secret
8
or
be
an
unwarranted
invasion
of
personal
privacy.
The
bill
9
permits
the
department
to
disclose
information
that
is
required
10
to
be
redacted
if
the
department
determines
such
information
is
11
necessary
to
the
resolution
or
decision
of
the
case.
12
The
bill
enacts
new
Code
section
422.25(1)(c)
(income
tax)
13
that
provides
the
period
of
examination
and
determination
is
14
unlimited
under
title
X
(financial
resources)
in
any
action
15
by
the
department
to
recover
or
rescind
a
tax
expenditure
16
as
defined
in
Code
section
2.48,
or
any
other
incentive
or
17
assistance
administered
by
the
economic
development
authority.
18
The
amendment
takes
effect
upon
enactment.
The
bill
also
19
provides
that
it
is
the
intent
of
the
general
assembly
that
the
20
amendment
to
Code
section
422.25(1)
is
a
conforming
amendment
21
consistent
with
current
law,
and
that
the
amendment
does
not
22
change
the
application
of
current
law.
This
provision
takes
23
effect
upon
enactment.
24
The
amendment
to
Code
section
422.72(1)(a)
adds
the
intent
25
element
of
“willfully
or
recklessly”
to
the
criminal
offense
26
related
to
the
unlawful
disclosure
by
state
personnel
or
27
former
state
personnel
of
the
business
affairs,
operations,
28
or
information
obtained
through
a
tax-related
investigation.
29
A
person
who
unlawfully
discloses
such
information
commits
a
30
serious
misdemeanor
under
Code
section
422.72(4).
A
serious
31
misdemeanor
is
punishable
by
confinement
for
no
more
than
one
32
year
and
a
fine
of
at
least
$315
but
not
more
than
$1,875.
33
The
bill
enacts
new
Code
section
422.72(7A),
a
similar
34
provision
to
new
Code
section
422.20(3B)
in
the
bill.
New
Code
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section
422.72(7A)
specifies
the
information
the
department
1
is
required
to
redact
prior
to
the
disclosure
to
the
general
2
public
of
the
record
in
an
appeal
or
contested
case.
The
3
bill
specifies
that
the
department
may
also
redact
other
tax
4
information
from
the
record
in
an
appeal
or
contested
case,
if
5
the
taxpayer
proves
by
clear
and
convincing
evidence
that
the
6
release
of
the
tax
information
would
disclose
a
trade
secret
7
or
be
an
unwarranted
invasion
of
personal
privacy.
The
bill
8
permits
the
department
to
disclose
information
that
is
required
9
to
be
redacted
if
the
department
determines
such
information
is
10
necessary
to
the
resolution
or
decision
of
the
case.
11
The
bill
enacts
new
Code
section
423.37(4)
(sales
and
use
12
tax)
that
provides
the
period
of
examination
and
determination
13
is
unlimited
under
title
X
(financial
resources)
in
any
action
14
by
the
department
to
recover
or
rescind
a
tax
expenditure
15
as
defined
in
Code
section
2.48
or
any
other
incentive
or
16
assistance
administered
by
the
economic
development
authority.
17
The
amendment
takes
effect
upon
enactment.
The
bill
also
18
provides
that
it
is
the
intent
of
the
general
assembly
that
the
19
amendment
to
Code
section
423.37(4)
is
a
conforming
amendment
20
consistent
with
current
law,
and
that
the
amendment
does
not
21
change
the
application
of
current
law.
This
provision
takes
22
effect
upon
enactment.
23
The
amendment
to
Code
section
428A.1
(real
estate
24
transfer
tax)
provides
that
a
county
recorder
shall
record
25
the
declaration
of
value
but
is
prohibited
from
charging
a
26
recording
fee
for
the
filing.
27
The
amendment
to
Code
section
441.48
enhances
the
28
readability
of
the
Code
section
by
specifying
the
board
of
29
supervisors
or
city
council,
as
applicable,
shall
provide
30
the
department
with
notice
of
intent
to
protest
prior
to
the
31
expiration
of
the
10
days’
notice
to
adjust
the
valuation
of
32
any
class
of
property
issued
by
the
department.
33
The
amendments
to
Code
sections
489.706,
490.1422,
501.813,
34
and
504.1423,
remove
the
role
of
the
department
in
the
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application
for
reinstatement
by
a
limited
liability
company,
1
corporation,
cooperative,
or
nonprofit
corporation
after
the
2
dissolution
of
such
an
entity.
3
The
bill
enacts
new
Code
section
533.329(03)
by
specifying
4
that
a
money
and
credit
tax
return
prepared
by
a
credit
union
5
shall
be
on
a
form
prepared
by
the
department
of
revenue,
and
6
shall
be
filed
with
the
department
on
or
before
the
last
day
of
7
April.
8
The
bill
amends
Code
section
533.329(3)
relating
to
9
enforcement
of
the
moneys
and
credits
tax
paid
by
credit
10
unions.
11
DIVISION
II
——
SALES
AND
USE
TAX.
The
amendments
to
Code
12
sections
321G.4
(snowmobiles)
and
321I.4
(all-terrain
vehicles)
13
require
the
county
recorder
to
collect
sales
or
use
tax
if
14
an
owner
of
such
a
vehicle
is
unable
to
present
satisfactory
15
evidence
that
the
sales
or
use
tax
has
been
paid.
16
The
amendment
to
Code
section
423.2(6)(bs)
specifies
that
17
any
services
arising
from
or
related
to
software
sold
as
18
tangible
personal
property
are
subject
to
the
sales
tax.
19
The
amendment
to
Code
section
423.2(8)(d)(1)
specifies
that
20
the
following
is
not
subject
to
the
sales
tax:
the
retail
21
sale
of
a
specified
digital
product
and
a
service
where
the
22
specified
digital
product
is
essential
and
exclusive
to
the
use
23
of
the
service,
and
the
true
object
of
the
transaction
is
the
24
service.
25
The
amendment
to
Code
section
423.3(3A)
provides
that
the
26
sales
price
from
the
sale
of
a
commercial
recreation
service
27
offering
the
opportunity
to
hunt
a
preserve
whitetail
is
28
exempt
from
the
sales
tax
if
the
sale
occurred
between
July
29
1,
2005,
and
December
31,
2015.
This
provision
takes
effect
30
upon
enactment
an
applies
retroactively
to
July
1,
2005.
The
31
bill
prohibits
any
refunds
resulting
from
the
amendment
to
Code
32
section
423.3(3A).
33
The
amendment
to
Code
section
423.3(31)
specifies
that
34
the
sales
price
of
tangible
personal
property
or
specified
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digital
products
sold
to,
or
of
services
furnished
to
a
1
tribal
government
as
defined
in
Code
section
216A.161,
or
the
2
instrumentalities
of
such
tribal
government
are
exempt
from
the
3
sales
tax
under
most
circumstances.
4
The
amendments
to
Code
section
423.3(80)(b)
and
(c)
specify
5
that
services
performed
pursuant
to
a
written
construction
6
contract
with
a
designated
exempt
entity
as
defined
in
Code
7
section
423.3(80)(a)(1)
are
exempt
from
the
sales
tax.
8
Currently,
the
construction
contract
is
not
required
to
be
a
9
written
contract
and
only
building
materials,
supplies,
and
10
equipment
used
in
such
a
contract
are
exempt
from
the
sales
11
tax.
The
bill
also
provides
that
the
building
materials,
12
supplies,
equipment,
and
services
are
exempt
from
the
sales
13
tax
only
if
the
property
that
is
subject
to
the
construction
14
project
becomes
public
property
or
the
property
of
a
designated
15
exempt
entity,
in
addition
to
the
requirement
that
the
16
exempt
items
be
completely
consumed
in
the
performance
of
the
17
construction
contract.
18
The
bill
enacts
new
Code
section
423.3(60A)
exempting
from
19
the
sales
tax
the
sales
price
from
sales
of
diapers
eligible
20
for
medical
assistance
as
defined
in
Code
section
249A.2.
21
The
amendment
to
Code
section
423.4(1),
relating
to
refunds
22
of
sales
or
use
taxes
to
tax-exempt
entities,
enhances
the
23
readability
of
the
Code
section
by
defining
a
“designated
24
exempt
entity”
and
thus
removing
repeated
references
to
each
25
exempt
entity
in
the
Code
section.
The
bill
also
adds
a
tribal
26
government
to
the
definition
of
a
designated
exempt
entity.
27
The
bill
strikes
the
terms
“goods,
wares,
and
merchandise”
and
28
uses
the
terms
“building
materials,
supplies,
and
equipment”
29
for
purposes
of
claiming
the
exemption,
when
a
designated
30
exempt
entity
makes
an
application
to
the
department
for
the
31
refund
of
the
sales
or
use
tax
upon
the
sales
price
of
all
32
sales
or
services
related
to
the
performance
of
a
written
33
construction
contract.
Additionally,
if
the
sales
price
of
34
all
building
materials,
supplies,
equipment,
or
services
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related
to
the
performance
of
a
written
construction
contract
1
are
to
be
exempt
from
the
sales
or
use
tax
under
the
bill,
2
all
of
the
following
must
apply:
the
building
materials,
3
supplies,
equipment,
or
services
are
completely
consumed
in
the
4
performance
of
a
construction
project;
the
property
that
is
the
5
subject
of
the
construction
project
becomes
public
property
or
6
the
property
of
an
exempt
entity;
and
the
building
materials,
7
supplies,
equipment,
or
services
furnished
are
not
used
in
8
the
performance
of
a
construction
contract
with
a
designated
9
exempt
entity
in
connection
with
the
construction
of
certain
10
facilities.
11
The
amendments
to
Code
section
423.4(2)(a)
and
(b)
relate
12
to
construction
contracts
for
transportation
projects
by
13
specifying
the
contractor
shall
pay
sales
or
use
tax
for
the
14
services
related
to
such
contracts,
and
by
making
terminology
15
more
consistent
in
the
subsection.
16
The
amendments
to
Code
sections
423.4(2)
and
423.4(6)
make
17
the
terminology
more
consistent
with
other
changes
in
the
bill.
18
The
amendment
to
Code
section
423.5(1)(b)
strikes
the
19
imposition
of
a
6
percent
excise
tax
on
the
use
of
manufactured
20
housing,
or
the
purchase
price
if
such
housing
is
sold
in
the
21
form
of
tangible
personal
property,
or
the
installed
purchase
22
price
if
such
housing
is
sold
in
the
form
of
realty.
23
The
amendment
to
Code
section
423.29(1)
provides
that
a
24
retailer
maintaining
a
place
of
business
in
this
state
and
25
making
taxable
sales
shall,
at
the
time
of
making
such
sales,
26
collect
the
sales
tax.
The
bill
also
provides
that
it
is
27
the
intent
of
the
general
assembly
that
the
amendment
to
28
Code
section
423.29(1)
is
a
conforming
amendment
consistent
29
with
current
law,
and
that
the
amendment
does
not
change
the
30
application
of
current
law.
31
The
amendment
to
Code
section
423.33(1)
enhances
the
32
readability
of
the
Code
section
by
specifying
that
if
a
33
purchaser
fails
to
pay
sales
tax
to
a
retailer
required
to
34
collect
the
sales
tax,
then
the
purchaser
shall
pay
a
use
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tax
directly
to
the
department.
The
bill
specifies
that
the
1
retailer
and
purchaser
are
jointly
liable
for
the
failure
2
to
pay
either
the
sales
or
use
tax
in
most
circumstances.
3
Additionally,
the
bill
provides
that
it
is
the
intent
of
the
4
general
assembly
that
the
addition
of
“joint
liability”
is
a
5
conforming
amendment
consistent
with
current
law,
and
that
6
the
amendment
does
not
change
the
application
of
current
law.
7
The
bill
provides
that
if
the
purchaser
pays
the
use
tax,
8
the
retailer
remains
liable
for
any
local
option
sales
and
9
services
tax
under
Code
chapter
423B
that
the
retailer
failed
10
to
collect.
11
DIVISION
III
——
INCOME
TAX.
The
bill
strikes
and
replaces
12
Code
section
422.9(3)(c).
The
bill
provides
that
a
taxpayer
13
may
elect
to
waive
the
entire
carryback
period
with
respect
to
14
an
Iowa
net
operating
loss
for
any
taxable
year,
in
the
manner
15
prescribed
by
the
department,
and
by
the
due
date
for
filing
16
the
taxpayer’s
return,
including
extensions
of
time.
After
the
17
election
is
made
for
any
taxable
year,
the
election
shall
be
18
irrevocable
for
such
taxable
year.
If
an
election
has
been
19
properly
made,
the
bill
provides
that
the
Iowa
net
operating
20
loss
shall
be
carried
forward
20
taxable
years.
21
The
amendment
to
Code
section
422.9(3)(d)
modifies
the
22
election
for
an
Iowa
farming
loss,
which
may
be
carried
back
23
for
five
taxable
years
prior
to
the
taxable
year
of
the
loss.
24
The
bill
specifies
that
a
farming
business
that
has
an
Iowa
25
farming
loss
may
make
an
election
to
carry
back
the
loss
for
26
five
taxable
years,
in
the
manner
prescribed
by
the
department,
27
and
shall
be
made
by
the
due
date
for
filing
the
taxpayer’s
28
return,
including
extensions
of
time.
After
the
election
is
29
made
for
any
taxable
year,
the
bill
provides
the
election
shall
30
be
irrevocable
for
such
taxable
year.
31
The
division
applies
to
tax
years
beginning
on
or
after
32
January
1,
2020.
33
DIVISION
IV
——
RESEARCH
ACTIVITIES
TAX
CREDIT.
The
34
amendments
to
Code
sections
15.335,
422.10,
and
422.33
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update
references
to
the
Internal
Revenue
Code
relating
to
1
the
alternative
simplified
credit
for
increasing
research
2
activities.
3
The
division
takes
effect
upon
enactment
and
applies
4
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
5
or
after
that
date.
6
DIVISION
V
——
PARTNERSHIP
AND
PASS-THROUGH
ENTITY
AUDITS
7
AND
REPORTING
OF
FEDERAL
ADJUSTMENTS.
The
amendment
to
Code
8
section
421.27(2)(c)
specifies
that
a
taxpayer
is
required
9
to
pay
a
penalty
of
5
percent
of
the
tax
due,
unless
the
10
taxpayer
provides
written
notification
to
the
department
of
a
11
federal
audit
while
it
is
in
progress
and
voluntarily
files
12
an
amended
return
which
includes
the
final
disposition
of
the
13
audit
and
final
federal
adjustments
to
taxes
paid
within
60
14
days
of
the
final
determination
date.
The
bill
defines
“final
15
determination
date”
to
generally
mean
the
first
day
on
which
no
16
federal
adjustments
to
taxes
arising
from
the
audit
or
other
17
action
remain
to
be
finally
determined.
In
cases
of
a
final
18
federal
partnership
adjustment
arising
from
a
partnership
19
level
audit,
the
taxpayer
is
required
to
pay
a
penalty
of
5
20
percent
of
the
tax
due,
unless
the
taxpayer
provides
written
21
notification
to
the
department
of
the
partnership
level
audit
22
while
it
is
in
progress,
or
timely
complies
with
reporting
and
23
payment
requirements.
24
The
bill
enacts
new
Code
section
422.7(59)
providing
that
25
any
income
subtracted
from
federal
taxable
income
shall
be
26
added
back
in
computing
net
income
for
state
individual
income
27
tax
purposes
when
federal
adjustments
are
made
to
taxes
in
the
28
adjustment
year.
The
bill
defines
“adjustment
year”
to
mean
29
the
year
in
which
the
final
determination
of
the
adjustment
30
occurs.
31
The
amendment
to
Code
section
422.25
adds
definitions
to
the
32
Code
section
for
“federal
adjustment”,
“federal
adjustments
33
report”,
“final
determination
date”,
and
“final
federal
34
adjustment”.
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The
bill
enacts
new
Code
section
422.25A
which
creates
a
1
process
for
audited
partnerships
and
their
direct
and
indirect
2
partners
to
report
final
federal
partnership
adjustments
to
3
the
department.
The
bill
provides
that
the
state
partnership
4
representative
for
the
reviewed
year
shall
have
sole
authority
5
to
act
on
behalf
of
the
partnership.
The
bill
creates
6
reporting
and
payment
requirements
for
audited
partnerships
7
and
their
partners
subject
to
final
federal
adjustments.
8
The
bill
permits
an
audited
partnership
or
a
tiered
partner
9
(partner
that
is
a
partnership
or
pass-through
entity)
to
make
10
irrevocable
elections
about
the
payment
of
any
adjustments,
11
and
specifies
the
consequences
of
making
certain
elections.
12
The
bill
permits
an
audited
partnership
or
tiered
partner
to
13
enter
into
an
agreement
with
the
department
to
use
alternative
14
reporting
and
payment
methods.
The
bill
permits
the
department
15
to
assess
additional
Iowa
income
tax,
interest,
and
penalties
16
arising
from
a
federal
partnership
adjustments
in
the
same
17
manner
as
provided
in
other
tax-related
provisions.
18
The
bill
enacts
new
Code
section
422.25B
that
requires
19
the
state
partnership
representative
acting
on
behalf
of
the
20
partnership
for
the
reviewed
year
to
be
the
partnership’s
21
federal
partnership
representative
with
respect
to
an
action
22
required
or
permitted
to
be
taken
by
a
state
partnership
23
representative,
unless
the
partnership
designates
in
writing
in
24
the
manner
prescribed
by
the
department
another
person
to
act
25
as
the
state
partnership
representative.
26
The
bill
enacts
new
Code
section
422.25C
relating
to
27
partnership
or
pass-through
entity
audits
and
examinations.
28
The
bill
provides
that
for
tax
years
beginning
on
or
after
29
January
1,
2020,
any
adjustments
to
a
partnership’s
or
30
pass-through
entity’s
taxes
or
an
adjustment
allocated
to
a
31
partner’s
taxes
as
a
result
of
a
department
audit
shall
be
32
determined
at
the
partnership
or
pass-through
entity
level
in
33
the
same
manner
as
provided
by
federal
law.
The
bill
specifies
34
that
the
state
partnership
representative
shall
have
the
sole
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authority
to
act
on
behalf
of
the
partnership
or
pass-through
1
entity
with
respect
to
any
actions
taken
due
to
the
audit,
2
including
appealing
decisions
to
the
director
of
revenue
or
3
seeking
judicial
review
of
the
director’s
decision.
The
4
provisions
of
new
Code
section
422.25C
may
be
applied
to
tax
5
years
beginning
before
January
1,
2020,
if
the
partnership
or
6
pass-through
entity
and
the
department
agree.
7
The
bill
enacts
new
Code
section
422.35(26)
providing
that
8
any
income
subtracted
from
federal
taxable
income
shall
be
9
added
back
in
computing
net
income
for
state
corporate
income
10
tax
purposes
when
federal
adjustments
are
made
to
taxes
in
the
11
adjustment
year.
The
bill
defines
“adjustment
year”
to
mean
12
the
year
in
which
the
final
determination
of
the
adjustment
13
occurs.
14
The
bill
amends
Code
section
422.39
by
specifying
that
Code
15
sections
relating
to
payments
of
interest,
computation
of
tax,
16
liens,
and
final
reports
of
fiduciaries
apply
to
not
just
17
payments
and
collections
but
to
reporting,
examinations,
and
18
assessments
with
respect
to
corporations
including
pass-through
19
entities
organized
as
corporations.
20
The
amendment
to
Code
section
422.73
relates
to
credits
21
against
taxes
due
because
of
errors.
The
bill
changes
the
22
period
of
limitation
(statute
of
limitations)
for
a
claim
for
23
a
refund
of
or
a
credit
against
individual
income
tax
by
a
24
taxpayer
to
one
year
from
the
final
determination
date
of
any
25
final
adjustment
with
respect
to
the
particular
tax
year
to
26
claim
an
income
tax
refund
or
credit.
Currently,
a
claim
for
27
a
refund
of
or
a
credit
against
the
individual
income
tax
by
28
a
taxpayer
is
six
months
from
the
final
disposition
of
any
29
income
tax
matter
between
the
taxpayer
and
the
internal
revenue
30
service.
The
bill
makes
other
changes
relating
to
agreements
31
entered
into
by
the
department
and
the
internal
revenue
32
service
for
the
transmission
of
federal
income
tax
reports
on
33
individuals
who
have
been
involved
in
an
income
tax
matter
with
34
the
internal
revenue
service.
35
-66-
LSB
5409XD
(10)
88
jm/jh
66/
67