Senate File 175 - Introduced
SENATE FILE
BY COMMITTEE ON JUDICIARY
(SUCCESSOR TO SSB 1004)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to certain penalties for filing false affidavits
2 and the time for examining and determining a correct return
3 under the state inheritance tax and increasing the amount of
4 property that may be transferred to minors under certain
5 conditions and including a retroactive applicability date
6 provision.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
8 TLSB 1077SV 81
9 mg/sh/8
PAG LIN
1 1 Section 1. Section 450.22, subsection 4, Code 2005, is
1 2 amended to read as follows:
1 3 4. If a return is not required to be filed pursuant to
1 4 subsection 3, and if real estate is involved, one of the
1 5 individuals with an interest in, or succeeding to an interest
1 6 in, the real estate shall file an affidavit in the county in
1 7 which the real estate is located setting forth the legal
1 8 description of the real estate and the fact that an
1 9 inheritance tax return is not required pursuant to subsection
1 10 3. If a false affidavit is filed, the affiant and the
1 11 personal representative shall be jointly and severally liable
1 12 for any tax, penalty, and interest that may have been due.
1 13 Any otherwise applicable statute of limitations on the
1 14 assessment and collection of the tax, penalty, and interest
1 15 shall not apply. Anyone with or succeeding to an interest in
1 16 real estate who willfully fails to file such an affidavit, or
1 17 who willfully files a false affidavit, is guilty of a
1 18 fraudulent practice.
1 19 Sec. 2. Section 450.53, subsection 2, Code 2005, is
1 20 amended to read as follows:
1 21 2. a. A person in possession of assets to be reported for
1 22 purposes of taxation, including a personal representative or
1 23 trustee, who willfully makes a false or fraudulent return, or
1 24 who willfully fails to pay the tax, or who willfully fails to
1 25 supply the information, necessary to prepare the return or
1 26 determine if a return is required, or who willfully fails to
1 27 make, sign, or file the required return within the time
1 28 required by law, is guilty of a fraudulent practice. This
1 29 paragraph subsection does not apply to failure to make, sign,
1 30 or file a return or failure to pay the tax if a return is not
1 31 required to be filed pursuant to subsection 1, paragraph "b".
1 32 b. If a false affidavit is filed, the affiant and the
1 33 personal representative shall be jointly and severally liable
1 34 for any tax, penalty, and interest that may have been due.
1 35 Any otherwise applicable statute of limitations on the
2 1 assessment and collection of the tax, penalty, and interest
2 2 shall not apply.
2 3 Sec. 3. Section 450.58, subsection 2, Code 2005, is
2 4 amended to read as follows:
2 5 2. If an inheritance tax return is not required to be
2 6 filed pursuant to section 450.53, subsection 1, paragraph "b",
2 7 the personal representative's final settlement of account need
2 8 not contain an inheritance tax receipt from the department,
2 9 but shall, instead, contain the personal representative's
2 10 statement, under oath, certification under section 633.35 that
2 11 an inheritance tax return is not required to be filed pursuant
2 12 to section 450.53, subsection 1, paragraph "b". If a false
2 13 affidavit is filed, the affiant and the personal
2 14 representative shall be jointly and severally liable for any
2 15 tax, penalty, and interest that may have been due. Any
2 16 otherwise applicable statute of limitations on the assessment
2 17 and collection of the tax, penalty, and interest shall not
2 18 apply.
2 19 Sec. 4. Section 450.94, subsection 5, Code 2005, is
2 20 amended by adding the following new paragraph:
2 21 NEW PARAGRAPH. c. The period for examination and
2 22 determination of the correct amount of tax to be reported and
2 23 due under this chapter is unlimited in the case of failure to
2 24 file a return or the filing of a false or fraudulent return or
2 25 affidavit.
2 26 Sec. 5. Section 565B.7, subsection 3, Code 2005, is
2 27 amended to read as follows:
2 28 3. If no a custodian has not been nominated under section
2 29 565B.3, or all persons so nominated as custodian die before
2 30 the transfer or are unable, decline, or are ineligible to
2 31 serve, a transfer under this section may be made to an adult
2 32 member of the minor's family or to a trust company unless the
2 33 property exceeds ten twenty=five thousand dollars in value.
2 34 Sec. 6. RETROACTIVE APPLICABILITY DATE. The sections of
2 35 this Act amending section 450.22, 450.53, and 450.58 apply
3 1 retroactively to July 1, 2004, for estates of decedents dying
3 2 on or after that date.
3 3 EXPLANATION
3 4 Code sections 450.22(4), 450.53(2), and 450.58(2) are
3 5 amended to eliminate the language that provides that if a
3 6 false affidavit is filed, the affiant and personal
3 7 representative are jointly and severally liable for the tax,
3 8 penalty, and interest since Code section 450.5 provides for
3 9 this. Code section 450.22(4) is also amended to provide that
3 10 anyone with or succeeding to an interest in real estate who
3 11 willfully fails to file an affidavit or files a false
3 12 affidavit in regard to a return not required to be filed is
3 13 guilty of a fraudulent practice. These amendments apply
3 14 retroactively to July 1, 2004, for estates of decedents dying
3 15 on or after that date.
3 16 Code section 450.94(5) is amended to provide that the
3 17 statute of limitations for the examination of a return or
3 18 determination of correct amount of tax is unlimited if a false
3 19 return is filed or no return is filed.
3 20 Code section 565B.7(3) is amended to increase the amount of
3 21 property that may be transferred under the transfers to minors
3 22 law to an adult member of a minor's family or a trust company
3 23 for the benefit of the minor. The amount is increased from
3 24 $10,000 to $25,000.
3 25 LSB 1077SV 81
3 26 mg:rj/sh/8