Senate File 85 - Introduced SENATE FILE BY HOGG Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the release of taxpayer debt information by 2 the department of revenue and to the assessment of penalties 3 and interest on taxes due by active duty military personnel 4 and providing a retroactive applicability date. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1506XS 83 7 tw/mg:sc/8 PAG LIN 1 1 Section 1. Section 421.17, subsection 27, paragraph i, 1 2 Code 2009, is amended to read as follows: 1 3 i. The director may distribute to credit reporting 1 4 entities and for publication the names, addresses, and amounts 1 5 of indebtedness owed to or being collected by the state if the 1 6 indebtedness is subject to the centralized debt collection 1 7 procedure established in this subsection. The director shall 1 8 not distribute or otherwise release for publication the name, 1 9 address, or amount of indebtedness owed by a taxpayer if the 1 10 taxpayer is a member on active duty in the armed forces, armed 1 11 forces military reserve, or national guard. The director 1 12 shall adopt rules to administer this paragraph, and the rules 1 13 shall provide guidelines by which the director shall determine 1 14 which names, addresses, and amounts of indebtedness may be 1 15 distributed for publication. The director may distribute 1 16 information for publication pursuant to this paragraph, 1 17 notwithstanding sections 422.20, 422.72, and 423.42, or any 1 18 other provision of state law to the contrary pertaining to 1 19 confidentiality of information. 1 20 Sec. 2. Section 421.27, Code 2009, is amended by adding 1 21 the following new subsection: 1 22 NEW SUBSECTION. 8. ASSESSMENT AGAINST ACTIVE DUTY 1 23 MILITARY PERSONNEL. If a taxpayer is a member on active duty 1 24 in the armed forces, armed forces military reserve, or 1 25 national guard, the department shall not add a penalty or 1 26 interest to the amount of tax shown due or required to be 1 27 shown due. Penalty and interest may be assessed on the amount 1 28 of tax due or required to be shown due after the department 1 29 has issued a notice to the taxpayer and provided the taxpayer 1 30 at least ninety days from the cessation of the taxpayer's tour 1 31 of active duty to remit payment of the amount of tax shown due 1 32 or required to be shown due. 1 33 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 1 34 retroactively to January 1, 2008, for tax years beginning on 1 35 or after that date. 2 1 EXPLANATION 2 2 This bill prevents the department of revenue from 2 3 distributing or otherwise releasing the name, address, or 2 4 amount of indebtedness owed by a taxpayer if the taxpayer is a 2 5 member on active duty in the armed forces, the armed forces 2 6 military reserve, or the national guard. 2 7 The bill also requires the department of revenue to give 2 8 active duty military personnel a delinquency notice and a 2 9 90=day grace period after the taxpayer ceases to be on active 2 10 duty before assessing a tax penalty and interest on the amount 2 11 due. 2 12 The bill applies retroactively to January 1, 2008, for tax 2 13 years beginning on or after that date. 2 14 LSB 1506XS 83 2 15 tw/mg:sc/8