Senate File 218 - Introduced SENATE FILE 218 BY ZAUN A BILL FOR An Act relating to the procedures and practices of the 1 department of revenue by permitting the abatement of 2 assessed interest under certain conditions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1932XS (2) 85 mm/sc
S.F. 218 Section 1. Section 421.60, subsection 2, paragraph i, Code 1 2013, is amended to read as follows: 2 i. (1) The director may, at any time, abate any unpaid 3 portion of assessed tax, interest, or penalties which that the 4 director determines is erroneous, illegal, or excessive. 5 (2) The director may, at any time, abate any unpaid portion 6 of assessed interest upon a showing of substantial evidence by 7 the taxpayer of any of the following conditions: 8 (a) The assessment of interest was due to unreasonable delay 9 by the department. 10 (b) The assessment of interest was due to an erroneous 11 refund that was not in any way caused by the taxpayer. 12 (c) The assessment of interest was due to applicable, 13 documented, written advice from the department that was relied 14 upon by the taxpayer, which advice was provided specifically to 15 the taxpayer pursuant to a written request from the taxpayer, 16 and which advice has not been superseded by a court decision, 17 ruling by a quasi-judicial body, or the adoption, amendment, or 18 repeal of a statutory provision or rule of law. 19 (d) The assessment of interest was due to applicable, 20 documented, written advice or position by the department or 21 another state agency that was reasonably relied upon by the 22 taxpayer, which advice or position has not been superseded 23 by a court decision, ruling by a quasi-judicial body, or the 24 adoption, amendment, or repeal of a statutory provision or rule 25 of law. 26 (3) The director shall prepare quarterly reports 27 summarizing each case in which abatement of tax, interest, or 28 penalties was made. However, the report shall not disclose the 29 identity of the taxpayer. 30 EXPLANATION 31 This bill relates to the procedures and practices of the 32 department of revenue by permitting the director of the 33 department of revenue to abate assessed interest under certain 34 conditions. Under current law, the director is permitted to 35 -1- LSB 1932XS (2) 85 mm/sc 1/ 2
S.F. 218 abate any unpaid portion of assessed interest that the director 1 determines is erroneous, illegal, or excessive. The bill 2 additionally permits the director to abate any unpaid portion 3 of assessed interest upon a showing of substantial evidence by 4 the taxpayer that one of the following conditions exists: 1) 5 the interest assessment was due to unreasonable delay by the 6 department; 2) the interest assessment was due to an erroneous 7 refund that was not in any way caused by the taxpayer; or 3) 8 the taxpayer relied on applicable, documented, written advice 9 provided by the department to the taxpayer pursuant to a 10 written request from the taxpayer, or the taxpayer reasonably 11 relied on other applicable, documented, written advice or 12 position by the department or another state agency, which 13 advice in either case has not been superseded by a court 14 decision, ruling by a quasi-judicial body, or the adoption, 15 amendment, or repeal of a statutory provision or rule of law. 16 -2- LSB 1932XS (2) 85 mm/sc 2/ 2