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
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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superseded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superseded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-
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1932XS
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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-
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1932XS
(2)
85
mm/sc
2/
2