House File 2444 - Introduced HOUSE FILE 2444 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 648) A BILL FOR An Act relating to the administration of the tax and related 1 laws of the department of revenue, including powers and 2 duties of the director and administration of the inheritance 3 tax, motor fuel and special fuel taxes, and including 4 retroactive applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5290HV (2) 85 mm/sc

H.F. 2444 DIVISION I 1 POWER AND DUTIES OF THE DIRECTOR 2 Section 1. Section 421.17, Code 2014, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 33. At the director’s discretion, to 5 receive and retain in an electronic format any record, 6 application, tax return, deposit, report, or any other 7 information or document required to be submitted to the 8 department. 9 DIVISION II 10 INHERITANCE TAX 11 Sec. 2. Section 450.94, subsection 2, Code 2014, is amended 12 to read as follows: 13 2. Unless a return is not required to be filed pursuant to 14 section 450.22, subsection 3 , or section 450.53, subsection 15 1 , paragraph “b” , the taxpayer shall file an inheritance tax 16 return on forms to be prescribed by the director of revenue on 17 or before the last day of the ninth month after the death of 18 the decedent. When an inheritance tax return is filed, the 19 department shall examine it and determine the correct amount of 20 tax. If the amount paid is less than the correct amount due, 21 the department shall notify the taxpayer of the total amount 22 due together with any penalty and interest which shall be 23 computed as a sum certain if paid on or before , with interest 24 computed to the last day of the month in which the notice is 25 dated , or on or before the last day of the following month if 26 the notice is dated after the twentieth day of a month and 27 before the first day of the following month . 28 DIVISION III 29 MOTOR FUEL AND SPECIAL FUEL TAXES 30 Sec. 3. Section 452A.64, Code 2014, is amended to read as 31 follows: 32 452A.64 Failure to file return —— incorrect return. 33 If a return required by this chapter is not filed, or if a 34 return when filed is incorrect or insufficient and the filer 35 -1- LSB 5290HV (2) 85 mm/sc 1/ 3

H.F. 2444 fails to file a corrected or sufficient return within twenty 1 days after the same is required by notice from the appropriate 2 state agency , the appropriate state agency shall determine the 3 amount of tax due. The determination shall be made from all 4 information that the appropriate state agency may be able to 5 obtain and, if necessary, the agency may estimate the tax on 6 the basis of external indices. The appropriate state agency 7 shall give notice of the determination to the person liable 8 for the tax. The determination shall fix the tax unless the 9 person against whom it is assessed shall, within sixty days 10 after the giving of notice of the determination, apply to 11 the director of the appropriate state agency for a hearing 12 or unless the taxpayer contests the determination by paying 13 the tax, interest, and penalty and timely filing a claim for 14 refund. At the hearing, evidence may be offered to support 15 the determination or to prove that it is incorrect. After the 16 hearing, the director shall give notice of the decision to the 17 person liable for the tax. The findings of the appropriate 18 state agency as to the amount of fuel taxes, penalties , and 19 interest due from any person shall be presumed to be the 20 correct amount and in any litigation which may follow, the 21 certificate of the agency shall be admitted in evidence, shall 22 constitute a prima facie case and shall impose upon the other 23 party the burden of showing any error in the findings and the 24 extent thereof or that the finding was contrary to law. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill relates to the administration of the tax and 29 related laws by the department of revenue. 30 DIVISION I —— POWERS AND DUTIES OF THE DIRECTOR. Division 31 I amends the powers and duties of the director of revenue to 32 allow the director, at the director’s discretion, to receive 33 and retain in an electronic format any record, application, tax 34 return, deposit, report, or any other information or document 35 -2- LSB 5290HV (2) 85 mm/sc 2/ 3

H.F. 2444 required to be submitted to the department. 1 DIVISION II —— INHERITANCE TAX. Division II relates to the 2 inheritance tax. The division eliminates the requirement that 3 notices of assessment issued after the twentieth day of a month 4 include interest calculated for the next month. 5 DIVISION III —— MOTOR FUEL AND SPECIAL FUEL TAXES. Division 6 III relates to motor fuel and special fuel taxes. Current 7 law requires that the department of revenue or the state 8 department of transportation, as applicable, send a notice to 9 filers of fuel tax returns if the return is either incorrect 10 or insufficient, giving the taxpayer 20 days to file a 11 corrected return. If a correct or sufficient return is not 12 filed, the department of revenue or the state department of 13 transportation, as applicable, is authorized to determine the 14 amount of tax due and send a notice of assessment to the person 15 liable for the tax. The division strikes the 20-day notice 16 requirement. 17 -3- LSB 5290HV (2) 85 mm/sc 3/ 3