• About Us
  • Advertise
  • Contact Us
  • Privacy Policy
Thursday, March 23, 2023
The Iowa Torch
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
No Result
View All Result
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
The Iowa Torch
The Iowa Torch
No Result
View All Result
Home State Government

Iowa Senate Bill Introduced As Part of State’s Tax Modernization Plan

Iowa businesses and residents may see changes in tax filing requirements and penalties if a bill, SSB 1268, passes in the Iowa Senate.

Mary StrokabyMary Stroka
April 21, 2021
in State Government
Reading Time: 3 mins read

Westside of Iowa State Capitol in Des Moines, Iowa, on February 2, 2021.
Photo Credit: Shane Vander Hart

(The Center Square) – Iowa businesses and residents as well as pass-through businesses may see changes in tax filing requirements and penalties if a bill, SSB 1268, passes in the Iowa Senate.

RELATED POSTS

Reynolds signs two bills addressing transgender children

School restroom bill heads to Reynolds’ desk

Iowa House sends government reorganization bill to Reynolds’ desk

The bill, introduced Monday, helps advance the Iowa Department of Revenue’s modernization program plan. Much of the bill pertains to cleaning up existing code, according to the department.

The modernization program involves creating an integrated tax processing system that provides a more efficient, user-friendly system that enables taxpayers to be more self-sufficient and enhances data security, collaboration, and data management, according to the department’s webpage describing the program.

Rollout portions 2 (November 2021-November 2022) and 3 (November 2022-November 2023) of the department’s modernization plan relate to corporate filers and individual filers, respectively.

Under the bill, Iowa taxpayers who fail to file tax returns on time would need to pay – in addition to what remains unpaid by the due date – a penalty of 5% of the remaining unpaid tax “in addition to any other penalty provided by law.” Currently, the penalty is 10% of the tax “shown due or required to be shown due.”

Taxpayers who are required to file monthly or quarterly may have “one late return or one late payment” within 3 years. Taxpayers receiving this waiver make timely filings and payments for three years before becoming eligible again for the same waiver.

ADVERTISEMENT

Iowans would lose the right to receive a waiver from penalty for late filing of inheritance tax that had solely been due to a disclaimer requiring the personal representative to file the return. Currently, the penalty is waived if the return is filed and any tax due is paid “within the later of nine months from the date of death” or 60 days from the delivery of filing of the disclaimer, under Iowa Code section 633E.12.

Iowa businesses that fail to file on time would pay the greater of $200 or 5% of their Iowa tax liability, up to $25,000, in addition to any other applicable legal penalty.

Businesses that are pass-through entities would have to file composite returns on behalf of all their partners, shareholders (if S corporation), or beneficiaries of estates or trusts who are not residents of the state or have commercial domiciles in the state. The income or franchise tax rate would be the maximum state income or franchise tax applicable and would be due on the same date as the pass-through entity’s annual return.

The changes for pass-through entities would apply beginning in January 2022.

The third and final section of the bill would amend HF309 if the bill, which is awaiting the governor’s signature, becomes law. HF309, which would restrict the government from requiring non-profit organizations to provide them with personal information without a warrant or a legal request for discovery.

With SSB 1268, the Department of Revenue would be able to identify an employee or other representative of the tax-exempt entity for forms such as tax returns or permits, disclose information in case of contested cases, or for student tuition organization tax credits.

Related bill HSB 272 was introduced in the House on March 30.

Tags: 2021 Iowa Legislative Session89th General AssemblyIowa Department of RevenueIowa Senate
ShareTweetShare
ADVERTISEMENT
Previous Post

Miller, Axne Applaud Guilty Verdict in Derek Chauvin Murder Trial

Next Post

Suspect in Homicide of Iowa State Patrol Sergeant Booked in Jail

Mary Stroka

Mary Stroka

Mary Stoka is a freelance writer, editor, journalist, and public relations professional who lives in Chicago, Ill.

Related Posts

white tiled wall with men s restroom sign
State Government

School restroom bill heads to Reynolds’ desk

March 20, 2023
Iowa lawmakers approve prohibiting ‘gender transitioning procedures’ for minors
State Government

Iowa lawmakers approve prohibiting ‘gender transitioning procedures’ for minors

March 9, 2023
State Government

Iowa Senate passes government reorganization bill

March 8, 2023
State Government

Reynolds signs bill fixing 2021 property tax error

February 22, 2023
Reynolds signs bill creating education savings accounts
State Government

Reynolds signs bill creating education savings accounts

January 24, 2023
The Iowa House Education Reform Committee debating HSB 1 on January 18, 2023.
State Government

School choice bill advances through legislative committees

January 19, 2023
Next Post
Suspect in Homicide of Iowa State Patrol Sergeant Booked in Jail

Suspect in Homicide of Iowa State Patrol Sergeant Booked in Jail

Corell Says His Experience With COVID-19 Was ‘Very Real, Very Serious’

Corell Says His Experience With COVID-19 Was 'Very Real, Very Serious'

Sign-Up For Our Daily Updates

Get The Iowa Torch right in your inbox!

Please wait...

Thank you for signing up!

Recommended Articles

Hinson: Iowa’s Workers are the Engine that Keep our Economy Going

September 6, 2021

Iowa Republicans and Iowa Democrats Release Precinct Caucus Locations

February 1, 2022
Longtime Polk County Treasurer Mary Maloney Dies Unexpectedly

Longtime Polk County Treasurer Mary Maloney Dies Unexpectedly

January 29, 2021

Popular Stories

  • Iowa’s New Unemployment Rate Holds Steady, Overall Rates Rise

    Horn: It’s time for employers get serious about Iowa’s untapped workforce

    0 shares
    Share 0 Tweet 0
  • School restroom bill heads to Reynolds’ desk

    0 shares
    Share 0 Tweet 0
  • Ernst: Biden’s WOTUS whiplash.

    0 shares
    Share 0 Tweet 0
  • Regents Board President pauses new DEI programs at Iowa’s public universities

    0 shares
    Share 0 Tweet 0
  • Iowa House sends government reorganization bill to Reynolds’ desk

    0 shares
    Share 0 Tweet 0

The Iowa Torch

The Iowa Torch​ is a for-profit, news organization that focuses on political news as it relates to Iowans

Categories

  • Education
  • Federal Government
  • Iowa History
  • Local Government
  • News
  • Opinion
  • Politics
  • State Government
  • Uncategorized
  • Uncategorized

Newsletter

Please wait...

Thank you for signing up!

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.

No Result
View All Result
  • Home
  • About Us
  • Advertise
  • Contact Us
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.