Senate Amendment 5347 PAG LIN 1 1 Amend House File 2531, as amended, passed, and 1 2 reprinted by the House, as follows: 1 3 #1. Page 46, after line 5 by inserting: 1 4 <DIVISION ___ 1 5 WAIVER OF PENALTIES AND INTEREST 1 6 Sec. ___. WAIVER OF PENALTIES AND INTEREST == 1 7 DISASTER=RELATED LOSSES == REFUNDS. 1 8 1. Notwithstanding sections 421.8, 421.27, and 1 9 422.25, if a taxpayer has filed a return for tax year 1 10 2008 relying in good faith on the expectation that the 1 11 state of Iowa would conform to the federal treatment 1 12 of disaster=related casualty losses under section 1 13 165(h) of the Internal Revenue Code, as modified by 1 14 the Heartland Disaster Relief Act of 2008, Pub. L. 1 15 No. 110=343, in computing net income for state tax 1 16 purposes, the director of revenue shall, for any 1 17 taxpayer amending the return in the time permitted by 1 18 statute, waive any penalty or interest due as a result 1 19 of either a failure to timely pay the tax due or the 1 20 filing of a defective or incorrect return. 1 21 2. If, prior to the effective date of this division 1 22 of this Act, a taxpayer paid penalties or interest as a 1 23 result of a good=faith reliance on the state conforming 1 24 to section 165(h) of the Internal Revenue Code, the 1 25 department of revenue shall refund such penalties and 1 26 interest to the taxpayer. 1 27 Sec. ___. EFFECTIVE UPON ENACTMENT AND RETROACTIVE 1 28 APPLICABILITY. This division of this Act, being deemed 1 29 of immediate importance, takes effect upon enactment 1 30 and applies retroactively to January 1, 2008, for 1 31 tax years beginning on or after that date and before 1 32 January 1, 2009.> 1 33 #2. By renumbering as necessary. ROBERT M. HOGG HF2531.2850 (1) 83 tm/sc -1-