House File 2641 - Introduced HOUSE FILE 2641 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 696) A BILL FOR An Act relating to state taxation and related laws of the 1 state, including the administration by the department of 2 revenue of certain tax credits and refunds, income taxes, 3 moneys and credits taxes, sales and use taxes, partnership 4 and pass-through entity audits, and by modifying provisions 5 relating to the reinstatement of business entities, the 6 assessment and valuation of property, the Iowa reinvestment 7 Act, horse racing, and port authorities, and providing 8 penalties, and including effective date and retroactive 9 applicability provisions. 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 11 TLSB 5409HV (6) 88 jm/jh

H.F. 2641 DIVISION I 1 DEPARTMENT OF REVENUE ADMINISTRATION AND PENALTY PROVISIONS 2 Section 1. Section 421.6, Code 2020, is amended to read as 3 follows: 4 421.6 Definition of return. 5 For purposes of this title , unless the context otherwise 6 requires, “return” means any tax or information return, amended 7 return, declaration of estimated tax, or claim for refund 8 that is required by, provided for, or permitted under, the 9 provisions of this title or section 533.329, and which is filed 10 with the department by, on behalf of, or with respect to any 11 person. “Return” includes any amendment or supplement to these 12 items, including supporting schedules, attachments, or lists 13 which are supplemental to or part of the filed return. 14 Sec. 2. Section 421.17, Code 2020, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 36. To enter into an agreement pursuant 17 to chapter 28E with the state fair organized under chapter 173 18 or with a fair defined in section 174.1, to collect and remit 19 taxes and fees from sellers making sales at retail on property 20 owned, controlled, or operated by a fair or through events 21 conducted by a fair. 22 Sec. 3. Section 421.27, subsection 1, Code 2020, is amended 23 to read as follows: 24 1. Failure to timely file a return or deposit form. 25 a. If a person fails to file with the department on or 26 before the due date a return or deposit form there shall be 27 added to the tax shown due or required to be shown due a penalty 28 of ten percent of the tax shown due or required to be shown due. 29 b. In the case of a specified business with no tax shown 30 due or required to be shown due that fails to timely file an 31 income return, the specified business shall pay the greater of 32 the following penalty amounts: 33 (1) Two hundred dollars. 34 (2) An amount equal to ten percent of the imputed Iowa 35 -1- LSB 5409HV (6) 88 jm/jh 1/ 116

H.F. 2641 liability of the specified business, not to exceed twenty-five 1 thousand dollars. 2 c. The penalty, if assessed pursuant to paragraph “a” or 3 “b” , shall be waived by the department upon a showing of any of 4 the following conditions: 5 a. (1) At An amount of tax greater than zero is required to 6 be shown due and at least ninety percent of the tax required to 7 be shown due has been paid by the due date of the tax. 8 b. (2) Those taxpayers who are required to file quarterly 9 returns, or monthly or semimonthly deposit forms may have one 10 late return or deposit form within a three-year period. The 11 use of any other penalty exception will not count as a late 12 return or deposit form for purposes of this exception. 13 c. (3) The death of a taxpayer, death of a member of 14 the immediate family of the taxpayer, or death of the person 15 directly responsible for filing the return and paying the tax, 16 when the death interferes with timely filing. 17 d. (4) The onset of serious, long-term illness or 18 hospitalization of the taxpayer, of a member of the immediate 19 family of the taxpayer, or of the person directly responsible 20 for filing the return and paying the tax. 21 e. (5) Destruction of records by fire, flood, or other act 22 of God. 23 f. (6) The taxpayer presents proof that the taxpayer 24 relied upon applicable, documented, written advice specifically 25 made to the taxpayer, to the taxpayer’s preparer, or to an 26 association representative of the taxpayer from the department, 27 state department of transportation, county treasurer, or 28 federal internal revenue service, whichever is appropriate, 29 that has not been superseded by a court decision, ruling by a 30 quasi-judicial body, or the adoption, amendment, or repeal of 31 a rule or law. 32 g. (7) Reliance upon results in a previous audit was a 33 direct cause for the failure to file where the previous audit 34 expressly and clearly addressed the issue and the previous 35 -2- LSB 5409HV (6) 88 jm/jh 2/ 116

H.F. 2641 audit results have not been superseded by a court decision, or 1 the adoption, amendment, or repeal of a rule or law. 2 h. (8) Under rules prescribed by the director, the taxpayer 3 presents documented proof of substantial authority to rely 4 upon a particular position or upon proof that all facts and 5 circumstances are disclosed on a return or deposit form. 6 i. (9) The return, deposit form, or payment is timely, 7 but erroneously, mailed with adequate postage to the internal 8 revenue service, another state agency, or a local government 9 agency and the taxpayer provides proof of timely mailing with 10 adequate postage. 11 j. (10) The tax has been paid by the wrong licensee and the 12 payments were timely remitted to the department for one or more 13 tax periods prior to notification by the department. 14 k. (11) The failure to file was discovered through a 15 sanctioned self-audit program conducted by the department. 16 l. (12) If the availability of funds in payment of tax 17 required to be made through electronic funds transfer is 18 delayed and the delay of availability is due to reasons beyond 19 the control of the taxpayer. “Electronic funds transfer” means 20 any transfer of funds, other than a transaction originated 21 by check, draft, or similar paper instrument, that is 22 initiated through an electronic terminal telephone, computer, 23 magnetic tape, or similar device for the purpose of ordering, 24 instructing, or authorizing a financial institution to debit or 25 credit an account. 26 m. (13) The failure to file a timely inheritance tax return 27 resulting solely from a disclaimer that required the personal 28 representative to file an inheritance tax return. The penalty 29 shall be waived if such return is filed and any tax due is paid 30 within the later of nine months from the date of death or sixty 31 days from the delivery or filing of the disclaimer pursuant to 32 section 633E.12 . 33 n. (14) That an Iowa inheritance tax return is filed for 34 an estate within the later of nine months from the date of 35 -3- LSB 5409HV (6) 88 jm/jh 3/ 116

H.F. 2641 death or sixty days from the filing of a disclaimer by the 1 beneficiary of the estate refusing to take the property or 2 right or interest in the property. 3 Sec. 4. Section 421.27, subsections 4 and 6, Code 2020, are 4 amended to read as follows: 5 4. Willful failure to file or deposit. 6 a. (1) In case of willful failure to file a return 7 or deposit form with the intent to evade tax or a filing 8 requirement , or in case of willfully filing a false return 9 or deposit form with the intent to evade tax, in lieu of the 10 penalties otherwise provided in this section , a penalty of 11 seventy-five percent shall be added to the amount shown due or 12 required to be shown as tax on the return or deposit form. 13 (2) In case of a willful failure by a specified business to 14 file an income return with no tax shown due or required to be 15 shown due with intent to evade a filing requirement, or in case 16 of willfully filing a false income return with no tax shown due 17 or required to be shown due with the intent to evade reporting 18 of Iowa-source income, the penalty imposed shall be the greater 19 of the following amounts: 20 (a) One thousand five hundred dollars. 21 (b) An amount equal to seventy-five percent of the imputed 22 Iowa liability of the specified business. 23 (3) If penalties are applicable for failure to file a 24 return or deposit form and failure to pay the tax shown due or 25 required to be shown due on the return or deposit form, the 26 penalty provision for failure to file shall be in lieu of the 27 penalty provisions for failure to pay the tax shown due or 28 required to be shown due on the return or deposit form, except 29 in the case of willful failure to file a return or deposit form 30 or willfully filing a false return or deposit form with intent 31 to evade tax. 32 b. The penalties imposed under this subsection are not 33 subject to waiver. 34 6. Improper receipt of payments Liability —— fraudulent 35 -4- LSB 5409HV (6) 88 jm/jh 4/ 116

H.F. 2641 practice . A person who makes an erroneous application for 1 refund, credit, reimbursement, rebate, or other payment shall 2 be liable for any overpayment received or tax liability reduced 3 plus interest at the rate in effect under section 421.7 . 4 a. In addition, a person who willfully commits a fraudulent 5 practice and is liable for a penalty equal to seventy-five 6 percent of the refund, credit, exemption, reimbursement, 7 rebate, or other payment or benefit being claimed if the person 8 does any of the following: 9 (1) Willfully makes a false or frivolous application for 10 refund, credit , exemption , reimbursement, rebate, or other 11 payment or benefit with intent to evade tax or with intent to 12 receive a refund, credit, exemption, reimbursement, rebate, 13 or other payment or benefit, to which the person is not 14 entitled is guilty of a fraudulent practice and is liable for a 15 penalty equal to seventy-five percent of the refund, credit, 16 reimbursement, rebate, or other payment being claimed . 17 (2) Willfully submits any false information, document, 18 or document containing false information in support of an 19 application for refund, credit, exemption, reimbursement, 20 rebate, or other payment or benefit with the intent to evade 21 tax. 22 (3) Willfully submits with any false information, document, 23 or document containing false information in support of an 24 application for refund with the intent to receive a refund, 25 credit, exemption, reimbursement, rebate, or other payment 26 benefit, to which the person is not entitled. 27 b. Payments, penalties, and interest due under this 28 subsection may be collected and enforced in the same manner as 29 the tax imposed. 30 Sec. 5. Section 421.27, Code 2020, is amended by adding the 31 following new subsections: 32 NEW SUBSECTION . 8. Definitions. As used in this section: 33 a. “Imputed Iowa liability” means any of the following: 34 (1) In the case of corporations other than corporations 35 -5- LSB 5409HV (6) 88 jm/jh 5/ 116

H.F. 2641 described in section 422.34 or section 422.36, subsection 5, 1 the corporation’s Iowa net income after the application of the 2 Iowa business activity ratio, if applicable, multiplied by the 3 top income tax rate imposed under section 422.33 for the tax 4 year. 5 (2) In the case of financial institutions as defined in 6 section 422.61, the financial institution’s Iowa net income 7 after the application of the Iowa business activity ratio, if 8 applicable, multiplied by the franchise tax rate imposed under 9 section 422.63 for the tax year. 10 (3) In this case of all other entities, including 11 corporations described in section 422.36, subsection 5, and all 12 other entities required to file an information return under 13 section 422.15, subsection 2, the entity’s Iowa net income 14 after the application of the Iowa business activity ratio, if 15 applicable, multiplied by the top income tax rate imposed under 16 section 422.5A for the tax year. 17 b. “Income return” means an income tax return or information 18 return required under section 422.15, subsection 2, or section 19 422.36, 422.37, or 422.62. 20 c. “Specified business” means a partnership or other entity 21 required to file an information return under section 422.15, 22 subsection 2, a corporation required to file a return under 23 section 422.36 or 422.37, or a financial institution required 24 to file a return under section 422.62. 25 NEW SUBSECTION . 9. Additional penalty. In addition to the 26 penalties imposed by this section, if a taxpayer fails to file 27 a return within ninety days of written notice by the department 28 that the taxpayer is required to do so, there shall be added to 29 the amount shown due or required to be shown due a penalty in 30 the amount of one thousand dollars. 31 Sec. 6. NEW SECTION . 421.27A Perjury. 32 1. For purposes of this title, a form, application, or any 33 other documentation required or requested by the department 34 shall be required to be certified under penalty of perjury that 35 -6- LSB 5409HV (6) 88 jm/jh 6/ 116

H.F. 2641 the information contained in the form, application, or other 1 documentation is true and correct. 2 2. A person commits a class “D” felony under any of the 3 following circumstances: 4 a. The person makes a form, application, or other document 5 containing false information in support of an application for 6 refund, credit, exemption, reimbursement, rebate, or other 7 payment or benefit with intent to evade tax. 8 b. The person makes a form, application, or other document 9 containing false information with intent to unlawfully receive 10 a refund, credit, exemption, reimbursement, rebate, or other 11 payment or benefit, to which the person is not entitled. 12 c. The person knowingly makes any false affidavit. 13 d. The person knowingly swears or affirms falsely to any 14 matter or thing required by the terms of this title to be sworn 15 to or affirmed. 16 Sec. 7. NEW SECTION . 421.59 Power of attorney —— authority 17 to act on behalf of taxpayer. 18 1. a. A taxpayer may authorize an individual to act on 19 behalf of the taxpayer by filing a power of attorney with the 20 department, on a form prescribed by the department. 21 b. A taxpayer may at any time revoke a power of attorney 22 filed with the department pursuant to subsection 1. Upon 23 processing of the taxpayer’s revocation of a power of attorney, 24 the department shall cease honoring the power of attorney. 25 2. The department may authorize the following persons to act 26 and receive information on behalf of and exercise all of the 27 rights of a taxpayer, regardless of whether a power of attorney 28 has been filed pursuant to subsection 1: 29 a. A guardian, conservator, or custodian appointed by a 30 court, if a taxpayer has been deemed legally incompetent by a 31 court. The authority of the appointee to act on behalf of the 32 taxpayer shall be limited to the extent specifically stated in 33 the order of appointment. 34 (1) Upon request, a guardian, conservator, or custodian of 35 -7- LSB 5409HV (6) 88 jm/jh 7/ 116

H.F. 2641 a taxpayer shall submit to the department a copy of the court 1 order appointing the guardian, conservator, or custodian. 2 (2) The department may petition the court that appointed the 3 guardian, conservator, or custodian to verify the appointment 4 or to determine the scope of the appointment. 5 b. A receiver appointed pursuant to chapter 680. An 6 appointed receiver shall be limited to act on behalf of the 7 taxpayer by the authority stated in the order of appointment. 8 (1) Upon the request of the department, a receiver shall 9 submit to the department a copy of the court order appointing 10 the receiver. 11 (2) The department may petition the court that appointed the 12 receiver to verify the appointment or to determine the scope 13 of the appointment. 14 c. An individual who has been named as an authorized 15 representative on a fiduciary return of income filed under 16 section 422.14 or a tax return filed under chapter 450. 17 d. (1) An individual holding the following title or 18 position within a corporation, association, partnership, or 19 other business entity: 20 (a) A president or chief executive officer, or any other 21 officer of the corporation or association if the president or 22 chief executive officer certifies that the officer has the 23 authority to legally bind the corporation or association. 24 (b) A designated partner duly authorized to act on behalf 25 of the partnership. 26 (c) A person authorized to act on behalf of a limited 27 liability company in tax matters pursuant to a valid statement 28 of authority. 29 (2) An individual seeking to act on behalf of a taxpayer 30 pursuant to this paragraph shall file an affidavit with the 31 department attesting to the identity and qualifications of the 32 individual and any necessary certifications required under this 33 paragraph. The department may require any documents or other 34 evidence to demonstrate the individual has authority to act on 35 -8- LSB 5409HV (6) 88 jm/jh 8/ 116

H.F. 2641 behalf of the taxpayer before the department. 1 e. A licensed attorney who has appeared on behalf of the 2 taxpayer or the taxpayer’s estate in a court proceeding. 3 Authorization under this paragraph is limited to those matters 4 within the scope of the representation. 5 f. A parent or guardian of a taxpayer who has not reached 6 the age of majority where the parent or guardian has signed the 7 taxpayer’s return on behalf of the taxpayer. Authorization 8 under this paragraph is limited to those matters relating to 9 the return signed by the parent or guardian. Authorization 10 under this paragraph automatically terminates when the taxpayer 11 reaches the age of majority pursuant to section 599.1. 12 3. a. In lieu of executing a power of attorney pursuant 13 to subsection 1, the department may enter into a memorandum of 14 understanding with the taxpayer for each employee, officer, 15 or member of a third-party entity engaged with or otherwise 16 hired by a taxpayer to manage the tax matters of the taxpayer, 17 to permit the disclosure of confidential tax information to 18 the third-party entity and the authority to act on behalf of 19 the taxpayer. The memorandum of understanding shall adhere to 20 requirements as established by the director. 21 b. The memorandum of understanding shall be signed by 22 the director, the taxpayer, and the third-party entity or an 23 authorized representative of the third-party entity. 24 c. At any time, a taxpayer may unilaterally revoke 25 a memorandum of understanding entered into pursuant to 26 this subsection by filing a notice of revocation with the 27 department. Upon the filing of such a revocation by the 28 taxpayer, the department shall cease honoring the memorandum 29 of understanding. 30 4. The department shall adopt rules pursuant to chapter 17A 31 to administer this section. 32 Sec. 8. Section 421.60, subsection 2, paragraph a, 33 subparagraph (2), Code 2020, is amended to read as follows: 34 (2) The statement prepared in accordance with this 35 -9- LSB 5409HV (6) 88 jm/jh 9/ 116

H.F. 2641 paragraph shall be available on the department’s internet site. 1 The internet site for this information shall be distributed by 2 the department to all taxpayers at the first contact by the 3 department with respect to the determination or collection of 4 any tax, except in the case of simply providing tax forms. 5 Sec. 9. Section 421.60, Code 2020, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 11. Electronic communication. 8 Notwithstanding any provision of the law to the contrary, for 9 purposes of this title and sections 321.105A and 533.329, a 10 taxpayer may elect to receive any notices, correspondence, 11 or other communication electronically that the department is 12 required to send by regular mail. The director may establish 13 procedures and limitations for obtaining this election from the 14 taxpayer. 15 Sec. 10. Section 421.62, subsection 1, Code 2020, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . 0b. “Income tax return or claim for refund” 18 means any tax return or claim for refund under chapter 422, 19 excluding withholding returns under section 422.16. 20 Sec. 11. Section 421.62, subsection 1, paragraph c, 21 subparagraph (1), Code 2020, is amended to read as follows: 22 (1) “Tax return preparer” means any individual who, for 23 a fee or other consideration, prepares ten or more income 24 tax returns or claims for refund under chapter 422 during 25 a calendar year, or who assumes final responsibility for 26 completed work on such income tax returns or claims for refund 27 under chapter 422 on which preliminary work has been done by 28 another individual. 29 Sec. 12. Section 421.62, subsection 2, paragraph a, Code 30 2020, is amended to read as follows: 31 a. On or after January 1, 2020, a tax return preparer 32 is required to include the tax return preparer’s PTIN on 33 any income tax return or claim for refund prepared by the 34 tax return preparer and filed under chapter 422 with the 35 -10- LSB 5409HV (6) 88 jm/jh 10/ 116

H.F. 2641 department . 1 Sec. 13. Section 421.64, subsection 1, Code 2020, is amended 2 to read as follows: 3 1. For purposes of this section , “tax return preparer” means 4 the same as defined in section 421.61 421.62 . 5 Sec. 14. Section 422.20, subsections 1 and 2, Code 2020, are 6 amended to read as follows: 7 1. It shall be unlawful for any present or former officer 8 or employee of the state to willfully or recklessly divulge or 9 to make known in any manner whatever not provided by law to 10 any person the amount or source of income, profits, losses, 11 expenditures, or any particular thereof, set forth or disclosed 12 in any income return, or to permit any income return or copy 13 thereof or any book containing any abstract or particulars 14 thereof to be seen or examined by any person except as provided 15 by law; and it shall be unlawful for any person to willfully or 16 recklessly print or publish in any manner whatever not provided 17 by law any income return, or any part thereof or source of 18 income, profits, losses, or expenditures appearing in any 19 income return; and any person committing an offense against the 20 foregoing provision shall be guilty of a serious misdemeanor. 21 If the offender is an officer or employee of the state, such 22 person shall also be dismissed from office or discharged from 23 employment. Nothing herein shall prohibit turning over to duly 24 authorized officers of the United States or tax officials of 25 other states state information and income returns pursuant 26 to agreement between the director and the secretary of the 27 treasury of the United States or the secretary’s delegate or 28 pursuant to a reciprocal agreement with another state. 29 2. It is unlawful for an officer, employee, or agent, or 30 former officer, employee, or agent of the state to willfully 31 or recklessly disclose to any person, except as authorized 32 in subsection 1 of this section , any federal tax return 33 or return information as defined in section 6103(b) of the 34 Internal Revenue Code. It is unlawful for a person to whom 35 -11- LSB 5409HV (6) 88 jm/jh 11/ 116

H.F. 2641 any federal tax return or return information, as defined in 1 section 6103(b) of the Internal Revenue Code, is disclosed 2 in a manner unauthorized by subsection 1 of this section 3 to thereafter willfully or recklessly print or publish in 4 any manner not provided by law any such return or return 5 information. A person violating this provision is guilty of 6 a serious misdemeanor. 7 Sec. 15. Section 422.20, subsection 3, paragraph a, Code 8 2020, is amended to read as follows: 9 a. Unless otherwise expressly permitted by section 8A.504 , 10 section 8G.4 , section 11.41 , section 96.11, subsection 6 , 11 section 421.17, subsections 22, 23, and 26 , section 421.17, 12 subsection 27 , paragraph “k” , section 421.17, subsection 31 , 13 section 252B.9 , section 321.40, subsection 6 , sections 321.120 , 14 421.19 , 421.28 , 421.59, 422.72 , and 452A.63 , this section , or 15 another provision of law, a tax return, return information, or 16 investigative or audit information shall not be divulged to any 17 person or entity, other than the taxpayer, the department, or 18 internal revenue service for use in a matter unrelated to tax 19 administration. 20 Sec. 16. Section 422.20, Code 2020, is amended by adding the 21 following new subsections: 22 NEW SUBSECTION . 3A. The director may disclose the tax 23 return of a partnership, limited liability company, or S 24 corporation, any such return information, or any investigative 25 information related to the return, to any person who was a 26 partner, shareholder, or member of such an entity during any 27 part of the period covered by the return. 28 NEW SUBSECTION . 3B. a. Prior to being made available for 29 public inspection, the department shall redact from the record 30 in an appeal or contested case the following information from 31 any pleading, exhibit, attachment, motion, written evidence, 32 final order, decision, or opinion: 33 (1) A financial account number. 34 (2) An account number generated by the department to 35 -12- LSB 5409HV (6) 88 jm/jh 12/ 116

H.F. 2641 identify an audit or examination. 1 (3) A social security number. 2 (4) A federal employer identification number. 3 (5) The name of a minor. 4 (6) A medical record or other medical information. 5 b. Upon a motion filed by the taxpayer, the department 6 may redact from the record in an appeal or contested case any 7 other information from a pleading, exhibit, attachment, motion, 8 or written evidence, if the taxpayer proves by clear and 9 convincing evidence that the release of such information would 10 disclose a trade secret or be a clear, unwarranted invasion of 11 personal privacy. 12 c. Notwithstanding paragraph “a” , when making final orders, 13 decisions, or opinions available for public inspection, the 14 department may disclose the items in paragraph “a” if the 15 department determines such information is necessary to the 16 resolution or decision of the appeal or case. 17 d. Except as described in paragraphs “a” and “b” , all 18 information contained in a pleading, exhibit, attachment, 19 motion, written evidence, final order, decision, opinion, 20 and the record in an appeal or contested case is subject to 21 examination to the extent provided by chapter 22. 22 Sec. 17. Section 422.25, subsection 1, Code 2020, is amended 23 by adding the following new paragraph: 24 NEW PARAGRAPH . c. The period of examination and 25 determination is unlimited under this title in the case of 26 any action by the department to recover or rescind any tax 27 expenditure as defined by section 2.48, subsection 1, or any 28 other incentive or assistance, due to a failure to meet or 29 maintain the requirements of a program administered by the 30 economic development authority. 31 Sec. 18. Section 422.69, subsection 1, Code 2020, is amended 32 to read as follows: 33 1. All fees, taxes, interest, and penalties imposed under 34 this chapter shall be paid to the department in the form of 35 -13- LSB 5409HV (6) 88 jm/jh 13/ 116

H.F. 2641 remittances payable to the state treasurer department and the 1 department shall transmit each payment daily to the state 2 treasurer. 3 Sec. 19. Section 422.72, subsection 1, paragraph a, 4 subparagraph (1), Code 2020, is amended to read as follows: 5 (1) It is unlawful for the director, or any person having 6 an administrative duty under this chapter , or any present or 7 former officer or other employee of the state authorized by the 8 director to examine returns, to willfully or recklessly divulge 9 in any manner whatever, the business affairs, operations, or 10 information obtained by an investigation under this chapter of 11 records and equipment of any person visited or examined in the 12 discharge of official duty, or the amount or source of income, 13 profits, losses, expenditures or any particular thereof, set 14 forth or disclosed in any return, or to willfully or recklessly 15 permit any return or copy of a return or any book containing 16 any abstract or particulars thereof to be seen or examined by 17 any person except as provided by law. 18 Sec. 20. Section 422.72, Code 2020, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 7A. a. Prior to being made available for 21 public inspection, the department shall redact from the record 22 in an appeal or contested case the following information from 23 any pleading, exhibit, attachment, motion, written evidence, 24 final order, decision, or opinion: 25 (1) A financial account number. 26 (2) An account number generated by the department to 27 identify an audit or examination. 28 (3) A social security number. 29 (4) A federal employer identification number. 30 (5) The name of a minor. 31 (6) A medical record or other medical information. 32 b. Upon a motion filed by the taxpayer, the department 33 may redact from the record in an appeal or contested case any 34 other information from a pleading, exhibit, attachment, motion, 35 -14- LSB 5409HV (6) 88 jm/jh 14/ 116

H.F. 2641 or written evidence, if the taxpayer proves by clear and 1 convincing evidence that the release of such information would 2 disclose a trade secret or be a clear, unwarranted invasion of 3 personal privacy. 4 c. Notwithstanding paragraph “a” , when making final orders, 5 decisions, or opinions available for public inspection, the 6 department may disclose the items in paragraph “a” if the 7 department determines such information is necessary to the 8 resolution or decision of the appeal or case. 9 d. Except as described in paragraphs “a” and “b” , all 10 information contained in a pleading, exhibit, attachment, 11 motion, written evidence, final order, decision, opinion, 12 and the record in an appeal or contested case is subject to 13 examination to the extent provided by chapter 22. 14 Sec. 21. Section 423.37, Code 2020, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 4. The period of limitation on examination 17 and determination is unlimited under this title in the case 18 of any action by the department to recover or rescind any tax 19 expenditure as defined by section 2.48, subsection 1, or any 20 other incentive or assistance, due to a failure to meet or 21 maintain the requirements of a program administered by the 22 economic development authority. 23 Sec. 22. Section 428A.1, subsection 3, Code 2020, is amended 24 to read as follows: 25 3. The declaration of value shall state the full 26 consideration paid for the real property transferred. If 27 agricultural land, as defined in section 9H.1 , is purchased by 28 a corporation, limited partnership, trust, alien or nonresident 29 alien, the declaration of value shall include the name and 30 address of the buyer, the name and address of the seller, a 31 legal description of the agricultural land, and identify the 32 buyer as a corporation, limited partnership, trust, alien, or 33 nonresident alien. The county recorder shall not record the 34 declaration of value, but shall enter on the declaration of 35 -15- LSB 5409HV (6) 88 jm/jh 15/ 116

H.F. 2641 value information the director of revenue requires for the 1 production of the sales/assessment ratio study and transmit 2 all declarations of value to the city or county assessor in 3 whose jurisdiction the property is located. The city or county 4 assessor shall enter on the declaration of value provide the 5 information the director of revenue requires for the production 6 of the sales/assessment ratio study and transmit one copy of 7 each declaration of value to the director of revenue, at times 8 as directed by the director of revenue. The assessor shall 9 retain one copy of each declaration of value for three years 10 from December 31 of the year in which the transfer of realty 11 for which the declaration was filed took place. The director 12 of revenue shall, upon receipt of the information required to 13 be filed under this chapter by the city or county assessor, 14 send to the office of the secretary of state that part of the 15 declaration of value which identifies a corporation, limited 16 partnership, trust, alien, or nonresident alien as a purchaser 17 of agricultural land as defined in section 9H.1 . 18 Sec. 23. Section 441.48, Code 2020, is amended to read as 19 follows: 20 441.48 Notice of adjustment. 21 1. Before the department of revenue shall adjust the 22 valuation of any class of property any such percentage, the 23 department shall first serve ten days’ notice by mail, on the 24 county auditor of the county whose valuation is proposed to be 25 adjusted. The department shall hold an adjourned meeting after 26 such 27 2. If the county or assessing jurisdiction intends to 28 protest the proposed adjustment, the board of supervisors or 29 city council, as applicable, shall provide the department with 30 notice of intent to protest prior to expiration of the ten 31 days’ notice. 32 3. After expiration of the ten days’ notice, at which time 33 the county or assessing jurisdiction may appear by its city 34 council or board of supervisors, city or county attorney, and 35 -16- LSB 5409HV (6) 88 jm/jh 16/ 116

H.F. 2641 other assessing jurisdiction, or city or county officials, and 1 make written or oral protest against such proposed adjustment. 2 4. The protest shall consist simply of a statement of the 3 error, or errors, complained of with such facts as may lead to 4 their correction. At the adjourned meeting 5 5. After written protest is received, or an oral protest 6 is heard, the final action may be taken in reference to the 7 proposed adjustment. 8 Sec. 24. Section 489.706, subsection 2, Code 2020, is 9 amended to read as follows: 10 2. The secretary of state shall refer the federal tax 11 identification number contained in the application for 12 reinstatement to the departments department of revenue and 13 workforce development. The departments department of revenue 14 and workforce development shall report to the secretary of 15 state the tax status of the limited liability company. If 16 either the department reports to the secretary of state that 17 a filing delinquency or liability exists against the limited 18 liability company, the secretary of state shall not cancel the 19 declaration of dissolution until the filing delinquency or 20 liability is satisfied. 21 Sec. 25. Section 490.1422, subsection 2, paragraph a, Code 22 2020, is amended to read as follows: 23 a. The secretary of state shall refer the federal tax 24 identification number contained in the application for 25 reinstatement to the departments department of revenue and 26 workforce development. The departments department of revenue 27 and workforce development shall report to the secretary 28 of state the tax status of the corporation. If either the 29 department reports to the secretary of state that a filing 30 delinquency or liability exists against the corporation, 31 the secretary of state shall not cancel the certificate of 32 dissolution until the filing delinquency or liability is 33 satisfied. 34 Sec. 26. Section 501.813, subsection 2, paragraph a, Code 35 -17- LSB 5409HV (6) 88 jm/jh 17/ 116

H.F. 2641 2020, is amended to read as follows: 1 a. The secretary of state shall refer the federal tax 2 identification number contained in the application for 3 reinstatement to the departments department of revenue and 4 workforce development. The departments department of revenue 5 and workforce development shall report to the secretary 6 of state the tax status of the cooperative. If either the 7 department reports to the secretary of state that a filing 8 delinquency or liability exists against the cooperative, 9 the secretary of state shall not cancel the certificate of 10 dissolution until the filing delinquency or liability is 11 satisfied. 12 Sec. 27. Section 504.1423, subsection 2, paragraph a, Code 13 2020, is amended to read as follows: 14 a. The secretary of state shall refer the federal tax 15 identification number contained in the application for 16 reinstatement to the departments department of revenue and 17 workforce development. The departments department of revenue 18 and workforce development shall report to the secretary 19 of state the tax status of the corporation. If either the 20 department reports to the secretary of state that a filing 21 delinquency or liability exists against the corporation, 22 the secretary of state shall not cancel the certificate of 23 dissolution until the filing delinquency or liability is 24 satisfied. 25 Sec. 28. Section 533.329, Code 2020, is amended by adding 26 the following new subsection: 27 NEW SUBSECTION . 03. Returns shall be in the form the 28 director of revenue prescribes, and shall be filed with the 29 department of revenue on or before the last day of the fourth 30 month after the expiration of the tax year. The moneys and 31 credits tax is due and payable on the last day of the fourth 32 month after the expiration of the tax year. 33 Sec. 29. Section 533.329, subsection 3, Code 2020, is 34 amended to read as follows: 35 -18- LSB 5409HV (6) 88 jm/jh 18/ 116