Senate
Study
Bill
3212
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
BOLKCOM)
A
BILL
FOR
An
Act
providing
for
the
waiver
of
tax
penalties
and
interest
1
under
certain
disaster
loss
circumstances
and
including
2
effective
date
and
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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_____
Section
1.
WAIVER
OF
PENALTIES
AND
INTEREST
——
1
DISASTER-RELATED
LOSSES
——
REFUNDS.
2
1.
Notwithstanding
sections
421.8,
421.27,
and
422.25,
if
a
3
taxpayer
has
filed
a
return
for
tax
year
2008
relying
in
good
4
faith
on
the
expectation
that
the
state
of
Iowa
would
conform
5
to
the
federal
treatment
of
disaster-related
casualty
losses
6
under
section
165(h)
of
the
Internal
Revenue
Code,
as
modified
7
by
the
Heartland
Disaster
Relief
Act
of
2008,
Pub.
L.
No.
8
110-343,
in
computing
net
income
for
state
tax
purposes,
the
9
director
of
revenue
shall,
for
any
taxpayer
amending
the
return
10
in
the
time
permitted
by
statute,
waive
any
penalty
or
interest
11
due
as
a
result
of
either
a
failure
to
timely
pay
the
tax
due
or
12
the
filing
of
a
defective
or
incorrect
return.
13
2.
If,
prior
to
the
effective
date
of
this
Act,
a
taxpayer
14
paid
penalties
or
interest
as
a
result
of
a
good
faith
reliance
15
on
the
state
conforming
to
section
165(h)
of
the
Internal
16
Revenue
Code,
the
department
of
revenue
shall
refund
such
17
penalties
and
interest
to
the
taxpayer.
18
Sec.
2.
EFFECTIVE
UPON
ENACTMENT
AND
RETROACTIVE
19
APPLICABILITY.
This
Act,
being
deemed
of
immediate
importance,
20
takes
effect
upon
enactment
and
applies
retroactively
to
21
January
1,
2008,
for
tax
years
beginning
on
or
after
that
date
22
and
before
January
1,
2009.
23
EXPLANATION
24
This
bill
relates
to
the
assessment
of
penalties
and
25
interest
against
taxpayers
who
filed
returns
expecting
the
26
state
of
Iowa
to
conform
with
certain
federal
income
tax
27
provisions.
28
In
2008,
the
midwest
suffered
significant
property
casualty
29
losses
due
to
natural
disasters.
In
response,
the
federal
30
government
passed
the
Heartland
Disaster
Relief
Act
which
31
amended
the
casualty
loss
provisions
of
the
Internal
Revenue
32
Code.
In
2009,
the
state
of
Iowa
did
not
conform
to
the
federal
33
provisions
related
to
the
computation
of
net
income.
This
34
bill
allows
the
director
of
revenue
to
waive
the
assessment
35
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_____
of
penalties
and
interest
against
taxpayers
who
relied
in
1
good
faith
on
the
state
conforming
to
the
federal
provisions
2
and
who
timely
amend
their
return.
The
waiver
relates
only
3
to
the
casualty
loss
provisions
in
section
165(h)
of
the
4
Internal
Revenue
Code.
Any
penalty
and
interest
paid
are
to
5
be
refunded.
6
The
bill
takes
effect
upon
enactment
and
applies
only
to
tax
7
year
2008.
8
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