Senate
Study
Bill
1268
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
relating
to
the
administration
of
the
tax
and
related
1
laws
by
the
department
of
revenue
by
requiring
composite
2
returns
for
pass-through
entities,
restricting
public
3
disclosure
of
certain
information,
providing
penalties,
and
4
including
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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DIVISION
I
1
ADMINISTRATION,
PENALTIES,
AND
CANCELLATION
OF
UNUSED
PERMITS
2
Section
1.
Section
421.17,
subsection
13,
Code
2021,
is
3
amended
by
striking
the
subsection.
4
Sec.
2.
Section
421.27,
Code
2021,
is
amended
to
read
as
5
follows:
6
421.27
Penalties.
7
1.
Failure
to
timely
file
a
return
or
deposit
form
.
8
a.
If
a
person
fails
to
file
a
return
with
the
department
9
on
or
before
the
due
date
,
a
return
or
deposit
form
there
shall
10
be
added
to
the
tax
shown
due
or
required
to
be
shown
due
11
remaining
unpaid
by
the
due
date
a
penalty
of
ten
five
percent
12
of
the
remaining
unpaid
tax
shown
due
or
required
to
be
shown
13
due
.
14
b.
In
the
case
of
a
specified
business
with
no
tax
shown
15
due
or
required
to
be
shown
due
that
fails
to
timely
file
an
16
income
return,
the
specified
business
shall
pay
the
greater
of
17
the
following
penalty
amounts:
18
(1)
Two
hundred
dollars.
19
(2)
An
amount
equal
to
ten
five
percent
of
the
imputed
Iowa
20
liability
of
the
specified
business,
not
to
exceed
twenty-five
21
thousand
dollars.
22
c.
The
penalty,
if
assessed
pursuant
to
paragraph
“a”
or
23
“b”
,
shall
be
in
addition
to
any
other
penalty
provided
by
law.
24
d.
The
penalty,
if
assessed
pursuant
to
paragraph
“a”
or
25
“b”
,
shall
be
waived
by
the
department
upon
a
showing
by
the
26
taxpayer
of
any
of
the
following
conditions:
27
(1)
An
amount
of
tax
greater
than
zero
is
required
to
be
28
shown
due
and
at
least
ninety
percent
of
the
tax
required
to
be
29
shown
due
has
been
paid
by
the
due
date
of
the
tax.
30
(2)
(a)
Those
taxpayers
who
are
A
taxpayer
who
is
31
required
to
file
a
monthly
or
quarterly
returns,
or
monthly
or
32
semimonthly
deposit
forms
return
may
have
one
late
return
or
33
deposit
form
one
late
payment
within
a
three-year
period.
34
(b)
If
the
taxpayer
receives
a
waiver
of
a
penalty
under
35
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this
subparagraph,
the
taxpayer
must
make
timely
filings
1
and
payments
for
three
years
prior
to
being
eligible
for
2
receiving
another
waiver
under
this
subparagraph.
If
the
3
taxpayer
receives
a
waiver
under
this
subparagraph,
the
waiver
4
shall
apply
to
penalties
assessed
under
this
subsection
and
5
subsection
2.
6
(c)
The
use
of
any
other
penalty
exception
will
shall
7
not
count
as
a
late
return
or
deposit
form
late
payment
for
8
purposes
of
this
exception
receiving
a
waiver
by
the
taxpayer
9
under
this
subparagraph
.
10
(3)
The
death
of
a
taxpayer,
death
of
a
member
of
the
11
immediate
family
of
the
taxpayer,
or
death
of
the
person
12
directly
responsible
for
filing
the
return
and
paying
the
tax,
13
when
the
death
interferes
with
timely
filing
of
a
return
or
14
timely
payment
of
tax
.
15
(4)
The
onset
of
serious,
long-term
illness
or
16
hospitalization
of
the
taxpayer,
of
a
member
of
the
immediate
17
family
of
the
taxpayer,
or
of
the
person
directly
responsible
18
for
filing
the
return
and
paying
the
tax
when
such
illness
or
19
hospitalization
interferes
with
the
timely
filing
of
a
return
20
or
timely
payment
of
tax
.
21
(5)
Destruction
of
records
by
fire,
flood,
or
other
act
of
22
God
when
the
destruction
interferes
with
the
timely
filing
of
a
23
return
or
timely
payment
of
tax
.
24
(6)
The
taxpayer
presents
proof
that
the
taxpayer
relied
25
upon
applicable,
documented,
written
advice
specifically
26
made
to
the
taxpayer,
to
the
taxpayer’s
preparer,
or
to
an
27
association
representative
of
the
taxpayer
from
the
department,
28
state
department
of
transportation,
county
treasurer,
or
29
federal
internal
revenue
service,
whichever
is
appropriate,
30
that
the
reliance
was
the
direct
cause
of
the
failure
to
file
31
or
failure
to
pay,
and
that
the
advice
has
not
been
superseded
32
by
a
court
decision,
ruling
by
a
quasi-judicial
body,
or
the
33
adoption,
amendment,
or
repeal
of
a
rule
or
law.
34
(7)
Reliance
upon
results
in
a
previous
audit
was
a
direct
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cause
for
the
failure
to
file
or
the
failure
to
pay
where
the
1
previous
audit
expressly
and
clearly
addressed
the
issue
and
2
the
previous
audit
results
have
not
been
superseded
by
a
court
3
decision,
or
the
adoption,
amendment,
or
repeal
of
a
rule
or
4
law.
5
(8)
Under
rules
prescribed
by
the
director,
the
taxpayer
6
presents
documented
proof
of
substantial
authority
to
rely
7
upon
a
particular
position
or
upon
proof
that
all
facts
and
8
circumstances
are
disclosed
on
a
return
or
deposit
form
.
9
(9)
The
return
,
deposit
form,
or
payment
is
timely,
but
10
erroneously,
mailed
with
adequate
postage
to
the
internal
11
revenue
service,
another
state
agency,
or
a
local
government
12
agency
and
the
taxpayer
provides
proof
of
timely
mailing
with
13
adequate
postage.
14
(10)
The
tax
has
been
paid
by
the
wrong
licensee
and
the
15
payments
were
timely
remitted
to
the
department
for
one
or
more
16
tax
periods
prior
to
notification
by
the
department.
17
(11)
The
failure
to
file
was
discovered
through
a
sanctioned
18
self-audit
program
conducted
by
the
department.
19
(12)
If
the
availability
of
funds
in
payment
of
tax
required
20
to
be
made
through
electronic
funds
transfer
is
delayed
and
the
21
delay
of
availability
is
due
to
reasons
beyond
the
control
of
22
the
taxpayer.
“Electronic
funds
transfer”
means
any
transfer
23
of
funds,
other
than
a
transaction
originated
by
check,
draft,
24
or
similar
paper
instrument,
that
is
initiated
through
an
25
electronic
terminal
telephone,
computer,
magnetic
tape,
or
26
similar
device
for
the
purpose
of
ordering,
instructing,
or
27
authorizing
a
financial
institution
to
debit
or
credit
an
28
account.
29
(13)
The
failure
to
file
a
timely
inheritance
tax
return
30
resulting
solely
from
a
disclaimer
that
required
the
personal
31
representative
to
file
an
inheritance
tax
return.
The
penalty
32
shall
be
waived
if
such
return
is
filed
and
any
tax
due
is
paid
33
within
the
later
of
nine
months
from
the
date
of
death
or
sixty
34
days
from
the
delivery
or
filing
of
the
disclaimer
pursuant
to
35
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section
633E.12
.
1
(14)
That
an
Iowa
inheritance
tax
return
is
filed
for
2
an
estate
within
the
later
of
nine
months
from
the
date
of
3
death
or
sixty
days
from
the
filing
of
a
disclaimer
by
the
4
beneficiary
of
the
estate
refusing
to
take
the
property
or
5
right
or
interest
in
the
property.
6
2.
Failure
to
timely
pay
the
tax
shown
due
,
or
the
tax
7
required
to
be
shown
due,
with
the
filing
of
a
return
or
deposit
8
form
.
If
a
person
fails
to
pay
the
tax
shown
due
or
required
9
to
be
shown
due,
on
a
return
or
deposit
form
on
or
before
the
10
due
date
,
there
shall
be
added
to
the
tax
shown
due
or
required
11
to
be
shown
due
remaining
unpaid
by
the
due
date
a
penalty
of
12
five
percent
of
the
unpaid
tax
due
.
The
penalty
shall
be
in
13
addition
to
any
other
penalty
provided
by
law.
The
penalty,
if
14
assessed,
shall
be
waived
by
the
department
upon
a
showing
by
15
the
taxpayer
of
any
of
the
following
conditions:
16
a.
At
least
ninety
percent
of
the
tax
required
to
be
17
shown
due
has
been
paid
by
the
due
date
of
the
tax
Any
reason
18
listed
under
subsection
1,
paragraph
“d”
,
except
subsection
1,
19
paragraph
“d”
,
subparagraph
(11)
.
20
b.
The
taxpayer
voluntarily
files
an
amended
return
and
pays
21
all
tax
shown
to
be
due
on
the
return
prior
to
any
contact
by
22
the
department,
except
under
a
sanctioned
self-audit
program
23
conducted
by
the
department.
24
c.
(1)
Except
in
the
case
of
a
final
federal
partnership
25
adjustment
governed
by
subparagraph
(2),
the
taxpayer
26
voluntarily
files
an
amended
return
which
includes
a
copy
of
27
the
federal
document
showing
the
final
disposition
or
final
28
federal
adjustments
and
pays
any
additional
Iowa
tax
due
within
29
one
hundred
eighty
days
of
the
final
determination
date
of
the
30
federal
government’s
audit.
For
purposes
of
this
subparagraph,
31
“final
determination
date”
means
the
same
as
defined
in
section
32
422.25
.
33
(2)
(a)
In
the
case
of
a
final
federal
partnership
34
adjustment
arising
from
a
partnership
level
audit,
with
respect
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to
the
audited
partnership
or
a
direct
partner
or
indirect
1
partner
of
the
audited
partnership,
the
audited
partnership,
2
direct
partner,
or
indirect
partner
voluntarily
and
timely
3
complies
with
its
reporting
and
payment
requirements
under
4
section
422.25A,
subsection
4
or
5
.
5
(b)
As
used
in
this
subparagraph,
all
words
and
phrases
6
defined
in
section
422.25A
shall
have
the
same
meaning
given
7
them
by
that
section.
8
d.
The
taxpayer
presents
proof
that
the
taxpayer
relied
9
upon
applicable,
documented,
written
advice
specifically
10
made
to
the
taxpayer,
to
the
taxpayer’s
preparer,
or
to
an
11
association
representative
of
the
taxpayer
from
the
department,
12
state
department
of
transportation,
county
treasurer,
or
13
federal
internal
revenue
service,
whichever
is
appropriate,
14
that
has
not
been
superseded
by
a
court
decision,
ruling
by
a
15
quasi-judicial
body,
or
the
adoption,
amendment,
or
repeal
of
16
a
rule
or
law.
17
e.
Reliance
upon
results
in
a
previous
audit
was
a
direct
18
cause
for
the
failure
to
pay
the
tax
required
to
be
shown
due
19
where
the
previous
audit
expressly
and
clearly
addressed
the
20
issue
and
the
previous
audit
results
have
not
been
superseded
21
by
a
court
decision,
or
the
adoption,
amendment,
or
repeal
of
22
a
rule
or
law.
23
f.
Under
rules
prescribed
by
the
director,
the
taxpayer
24
presents
documented
proof
of
substantial
authority
to
rely
25
upon
a
particular
position
or
upon
proof
that
all
facts
and
26
circumstances
are
disclosed
on
a
return
or
deposit
form.
27
g.
The
return,
deposit
form,
or
payment
is
timely,
but
28
erroneously,
mailed
with
adequate
postage
to
the
internal
29
revenue
service,
another
state
agency,
or
a
local
government
30
agency
and
the
taxpayer
provides
proof
of
timely
mailing
with
31
adequate
postage.
32
h.
The
tax
has
been
paid
by
the
wrong
licensee
and
the
33
payments
were
timely
remitted
to
the
department
for
one
or
more
34
tax
periods
prior
to
notification
by
the
department.
35
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i.
That
an
Iowa
inheritance
tax
return
is
filed
for
an
1
estate
within
the
later
of
nine
months
from
the
date
of
2
death
or
sixty
days
from
the
filing
of
a
disclaimer
by
the
3
beneficiary
of
the
estate
refusing
to
take
the
property
or
4
right
or
interest
in
the
property.
5
3.
Audit
and
examination
deficiencies.
If
any
person
6
fails
to
pay
the
tax
required
to
be
shown
due
with
the
filing
7
of
a
return
or
deposit
and
the
department
discovers
the
8
underpayment,
there
shall
be
added
to
the
tax
required
to
be
9
shown
due
a
penalty
of
five
percent
of
the
unpaid
tax
required
10
to
be
shown
due
,
which
shall
be
in
lieu
of
the
penalty
in
11
subsection
2
.
The
penalty,
if
assessed,
shall
be
waived
by
12
the
department
upon
a
showing
by
the
taxpayer
of
any
of
the
13
following
conditions:
14
a.
At
least
ninety
percent
of
the
tax
required
to
be
shown
15
due
has
been
paid
by
the
due
date.
16
b.
The
taxpayer
presents
proof
that
the
taxpayer
relied
upon
17
applicable,
documented,
written
advice
specifically
made
to
18
the
taxpayer,
to
the
taxpayer’s
preparer,
or
to
an
association
19
representative
of
the
taxpayer
from
the
department,
state
20
department
of
transportation,
county
treasurer,
or
federal
21
internal
revenue
service,
whichever
is
appropriate,
that
the
22
reliance
was
the
direct
cause
for
the
failure
to
pay,
and
that
23
the
advice
has
not
been
superseded
by
a
court
decision,
ruling
24
by
a
quasi-judicial
body,
or
the
adoption,
amendment,
or
repeal
25
of
a
rule
or
law.
26
c.
Reliance
upon
results
in
a
previous
audit
was
a
direct
27
cause
for
the
failure
to
pay
the
tax
shown
due
or
required
to
28
be
shown
due
where
the
previous
audit
expressly
and
clearly
29
addressed
the
issue
and
the
previous
audit
results
have
30
not
been
superseded
by
a
court
decision,
or
the
adoption,
31
amendment,
or
repeal
of
a
rule
or
law.
32
d.
Under
rules
prescribed
by
the
director,
the
taxpayer
33
presents
documented
proof
of
substantial
authority
to
rely
34
upon
a
particular
position
or
upon
proof
that
all
facts
and
35
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circumstances
are
disclosed
on
a
return
or
deposit
form
.
1
4.
Willful
failure
to
file
or
deposit
pay
.
2
a.
(1)
In
case
of
willful
failure
to
file
a
return
3
or
deposit
form
with
the
intent
to
evade
tax
or
a
filing
4
requirement,
willful
failure
to
pay
with
the
intent
to
evade
5
tax,
or
in
case
of
willfully
filing
a
false
return
or
deposit
6
form
with
the
intent
to
evade
tax,
in
lieu
of
the
penalties
7
otherwise
provided
in
this
section
,
there
shall
be
added
to
the
8
tax
remaining
unpaid
by
the
due
date
a
penalty
of
seventy-five
9
percent
shall
be
added
to
the
amount
shown
due
or
required
to
10
be
shown
as
tax
on
the
return
or
deposit
form
of
the
unpaid
tax
.
11
(2)
In
case
of
a
willful
failure
by
a
specified
business
to
12
file
an
income
return
with
no
tax
shown
due
or
required
to
be
13
shown
due
with
intent
to
evade
a
filing
requirement,
or
in
case
14
of
willfully
filing
a
false
income
return
with
no
tax
shown
due
15
or
required
to
be
shown
due
with
the
intent
to
evade
reporting
16
of
Iowa-source
income,
the
penalty
imposed
shall
be
the
greater
17
of
the
following
amounts:
18
(a)
One
thousand
five
hundred
dollars.
19
(b)
An
amount
equal
to
seventy-five
percent
of
the
imputed
20
Iowa
liability
of
the
specified
business.
21
(3)
If
penalties
are
applicable
for
failure
to
file
a
22
return
or
deposit
form
and
failure
to
pay
the
tax
shown
due
or
23
required
to
be
shown
due
on
the
return
or
deposit
form,
the
24
penalty
provision
for
failure
to
file
shall
be
in
lieu
of
the
25
penalty
provisions
for
failure
to
pay
the
tax
shown
due
or
26
required
to
be
shown
due
on
the
return
or
deposit
form,
except
27
in
the
case
of
willful
failure
to
file
a
return
or
deposit
form
28
or
willfully
filing
a
false
return
or
deposit
form
with
intent
29
to
evade
tax.
30
b.
The
penalties
imposed
under
this
subsection
are
not
31
subject
to
waiver.
32
5.
Failure
to
remit
on
extension.
If
a
person
fails
to
33
remit
at
least
ninety
percent
of
the
tax
required
to
be
shown
34
due
by
the
time
an
extension
for
further
time
to
file
a
return
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is
made,
there
shall
be
added
to
the
tax
shown
due
or
required
1
to
be
shown
due
a
penalty
of
ten
percent
of
the
unpaid
tax
due
.
2
6.
Liability
——
fraudulent
practice.
A
person
who
makes
3
an
erroneous
application
for
refund,
credit,
reimbursement,
4
rebate,
or
other
payment
shall
be
liable
for
any
overpayment
5
received
or
tax
liability
reduced
plus
interest
at
the
rate
in
6
effect
under
section
421.7
.
7
a.
In
addition,
a
person
commits
a
fraudulent
practice
and
8
is
liable
for
a
penalty
equal
to
seventy-five
percent
of
the
9
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
10
payment
or
benefit
being
claimed
if
the
person
does
any
of
the
11
following:
12
(1)
Willfully
makes
a
false
or
frivolous
application
for
13
refund,
credit,
exemption,
reimbursement,
rebate,
or
other
14
payment
or
benefit
with
intent
to
evade
tax
or
with
intent
to
15
receive
a
refund,
credit,
exemption,
reimbursement,
rebate,
or
16
other
payment
or
benefit,
to
which
the
person
is
not
entitled.
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
or
with
intent
to
receive
a
refund,
credit
exemption,
22
reimbursement,
rebate,
or
other
payment
or
benefit,
to
which
23
the
person
is
not
entitled
.
24
(3)
Willfully
submits
with
any
false
information,
document,
25
or
document
containing
false
information
in
support
of
an
26
application
for
refund
with
the
intent
to
evade
tax
or
with
27
intent
to
receive
a
refund,
credit,
exemption,
reimbursement,
28
rebate,
or
other
payment
benefit,
to
which
the
person
is
not
29
entitled.
30
b.
Payments,
penalties,
and
interest
due
under
this
31
subsection
may
be
collected
and
enforced
in
the
same
manner
as
32
the
tax
imposed.
33
c.
Penalties
imposed
under
this
subsection
are
not
subject
34
to
waiver.
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7.
Failure
to
use
required
form
or
manner
.
If
a
person
fails
1
to
remit
payment
of
taxes
in
the
form
or
manner
required
by
the
2
rules
of
the
director,
there
shall
be
added
to
the
amount
of
3
the
tax
a
penalty
of
five
percent
of
the
amount
of
tax
shown
4
due
or
required
to
be
shown
due
the
payment
remitted
in
the
5
incorrect
form
or
manner
not
to
exceed
five
hundred
dollars
6
per
instance
of
incorrect
form
or
manner
of
payment
.
The
7
penalty
shall
be
in
addition
to
any
other
penalty
provided
by
8
law.
The
penalty
imposed
by
this
subsection
shall
be
waived
if
9
the
taxpayer
did
not
receive
notification
of
the
requirement
10
to
remit
tax
payments
electronically
or
if
the
electronic
11
transmission
of
the
payment
was
not
in
a
format
or
by
means
12
specified
by
the
director
and
the
payment
was
made
before
the
13
taxpayer
was
notified
of
the
requirement
to
remit
tax
payments
14
electronically.
15
8.
Additional
penalty.
In
addition
to
the
penalties
imposed
16
by
this
section
,
if
a
taxpayer
fails
to
file
a
return
within
17
ninety
days
of
written
notice
demand
issued
by
the
department
18
pursuant
to
the
rules
implementing
this
subsection
that
the
19
taxpayer
is
required
to
do
so,
there
shall
be
added
to
the
20
amount
shown
due
or
required
to
be
shown
due
a
penalty
in
the
21
amount
of
one
thousand
dollars.
The
penalty
shall
be
waived
by
22
the
department
upon
a
showing
of
good
reason
as
defined
by
the
23
department
by
rule.
24
9.
Definitions.
As
used
in
this
section
:
25
a.
“Imputed
Iowa
liability”
means
any
of
the
following:
26
(1)
In
the
case
of
corporations
other
than
corporations
27
described
in
section
422.34
or
section
422.36,
subsection
5
,
28
the
corporation’s
Iowa
net
income
after
the
application
of
the
29
Iowa
business
activity
ratio,
if
applicable,
multiplied
by
the
30
top
income
tax
rate
imposed
under
section
422.33
for
the
tax
31
year.
32
(2)
In
the
case
of
financial
institutions
as
defined
in
33
section
422.61
,
the
financial
institution’s
Iowa
net
income
34
after
the
application
of
the
Iowa
business
activity
ratio,
if
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applicable,
multiplied
by
the
franchise
tax
rate
imposed
under
1
section
422.63
for
the
tax
year.
2
(3)
In
this
case
of
all
other
entities,
including
3
corporations
described
in
section
422.36,
subsection
5
,
and
all
4
other
entities
required
to
file
an
information
return
under
5
section
422.15,
subsection
2
,
the
entity’s
Iowa
net
income
6
after
the
application
of
the
Iowa
business
activity
ratio,
if
7
applicable,
multiplied
by
the
top
income
tax
rate
imposed
under
8
section
422.5A
for
the
tax
year.
9
b.
“Income
return”
means
an
income
tax
return
or
information
10
return
required
under
section
422.15,
subsection
2
,
or
section
11
422.36
,
422.37
,
or
422.62
.
12
c.
“Specified
business”
means
a
partnership
or
other
entity
13
required
to
file
an
information
return
under
section
422.15,
14
subsection
2
,
a
corporation
required
to
file
a
return
under
15
section
422.36
or
422.37
,
or
a
financial
institution
required
16
to
file
a
return
under
section
422.62
.
17
Sec.
3.
Section
421.60,
subsection
2,
paragraph
d,
Code
18
2021,
is
amended
to
read
as
follows:
19
d.
(1)
A
taxpayer
is
permitted
to
designate
in
writing
20
the
type
of
tax
and
tax
periods
to
which
any
voluntary
payment
21
relates,
provided
that
separate
written
instructions
accompany
22
the
payment.
This
paragraph
does
not
apply
to
jeopardy
23
assessments
and
does
not
apply
if
the
department
has
to
enforce
24
collection
of
the
payment.
25
(2)
As
used
in
this
paragraph,
“tax
period”
means
a
period
26
of
time
for
which
a
return
is
required.
27
Sec.
4.
Section
422.25,
subsection
4,
Code
2021,
is
amended
28
to
read
as
follows:
29
4.
a.
All
payments
received
must
be
credited
first,
to
30
the
penalty
and
interest
accrued,
and
then
to
the
tax
due.
If
31
payments
in
multiple
tax
periods
are
unpaid,
payments
received
32
shall
be
credited
first
to
the
penalty
and
interest
accrued
and
33
then
tax
due
for
the
earliest
period,
and
then
credited
to
each
34
following
tax
period
in
chronological
order
from
the
earliest
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tax
period
to
the
latest
tax
period.
Payments
required
to
be
1
made
within
a
tax
period
must
be
credited
first
to
the
earliest
2
deposit
period
within
the
tax
period.
For
purposes
of
this
3
subsection
,
the
department
shall
not
reapply
prior
payments
4
made
on
or
before
the
due
date
of
the
original
return
by
the
5
taxpayer
to
penalty
or
interest
determined
to
be
due
after
the
6
date
of
those
prior
payments,
except
that
the
taxpayer
and
the
7
department
may
agree
to
apply
payments
in
accordance
with
rules
8
adopted
by
the
director
when
there
are
both
agreed
and
unagreed
9
to
items
as
a
result
of
an
examination.
10
b.
As
used
in
this
subsection,
“tax
period”
means
a
period
11
of
time
for
which
a
return
is
required.
12
Sec.
5.
Section
422.75,
Code
2021,
is
amended
to
read
as
13
follows:
14
422.75
Statistics
——
publication.
15
The
department
shall
prepare
and
publish
an
annual
report
16
which
shall
include
statistics
reasonably
available,
with
17
respect
to
the
operation
of
this
chapter
,
including
amounts
18
collected,
classification
of
taxpayers,
and
such
other
facts
19
as
are
deemed
pertinent
and
valuable.
The
annual
report
shall
20
also
include
the
reports
and
information
required
pursuant
to
21
section
421.17,
subsection
13
,
and
section
421.60,
subsection
22
2
,
paragraphs
“i”
and
“l”
.
23
Sec.
6.
Section
423.14,
subsection
2,
paragraph
b,
Code
24
2021,
is
amended
to
read
as
follows:
25
b.
The
tax
upon
the
use
of
all
tangible
personal
property
26
and
specified
digital
products
other
than
that
enumerated
in
27
paragraph
“a”
,
which
is
sold
by
a
seller
who
is
a
retailer
or
28
its
agent
that
is
not
otherwise
required
to
collect
sales
tax
29
under
the
provisions
of
this
chapter
,
shall
may
be
collected
by
30
the
retailer
or
agent
and
remitted
to
the
department,
pursuant
31
to
the
provisions
of
paragraph
“e”
,
and
sections
423.24
,
423.29
,
32
423.30
,
423.32
,
and
423.33
.
33
Sec.
7.
CANCELLATION
OF
UNUSED
PERMITS.
Notwithstanding
34
any
other
provision
of
law
to
the
contrary,
from
July
1,
2021,
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through
December
31,
2021,
the
department
of
revenue
shall
have
1
authority
to
cancel
withholding
tax
permits,
sales
tax
permits,
2
or
use
tax
permits
that
the
department
of
revenue
has
verified
3
are
no
longer
in
use.
4
DIVISION
II
5
PASS-THROUGH
ENTITIES
——
COMPOSITE
RETURNS
6
Sec.
8.
Section
29C.24,
subsection
3,
paragraph
a,
7
subparagraph
(3),
Code
2021,
is
amended
to
read
as
follows:
8
(3)
The
imposition
of
income
taxes
under
chapter
422,
9
subchapters
II
and
III
,
including
the
requirement
to
file
tax
10
returns
under
sections
422.13
through
422.15
,
section
422.16B,
11
or
section
422.36
,
as
applicable,
and
including
the
requirement
12
to
withhold
and
remit
income
tax
from
out-of-state
employees
13
under
section
422.16
.
In
addition,
the
performance
of
disaster
14
or
emergency-related
work
during
a
disaster
response
period
15
by
an
out-of-state
business
or
out-of-state
employee
shall
16
not
require
an
out-of-state
business
to
be
included
in
a
17
consolidated
return
under
section
422.37
,
and
shall
not
18
increase
the
amount
of
net
income
of
the
out-of-state
business
19
allocated
and
apportioned
to
the
state
under
section
422.8
or
20
422.33
,
as
applicable.
21
Sec.
9.
Section
422.9,
subsection
2A,
paragraph
b,
Code
22
2021,
is
amended
by
striking
the
paragraph.
23
Sec.
10.
Section
422.13,
subsection
5,
Code
2021,
is
amended
24
by
striking
the
subsection.
25
Sec.
11.
Section
422.13,
subsection
6,
Code
2021,
is
amended
26
to
read
as
follows:
27
6.
Notwithstanding
subsections
1
through
5
4
and
sections
28
422.14
and
422.15
,
a
return
is
not
required
by
a
taxpayer
as
29
provided
in
section
29C.24
.
30
Sec.
12.
Section
422.16,
subsection
12,
paragraph
a,
Code
31
2021,
is
amended
to
read
as
follows:
32
a.
In
the
case
of
nonresidents
having
income
subject
to
33
taxation
by
Iowa,
but
not
subject
to
withholding
of
such
tax
34
under
subsection
1
hereof
or
subject
to
the
provisions
of
35
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section
422.16B
,
withholding
agents
shall
withhold
from
such
1
income
at
the
same
rate
as
provided
in
subsection
1
hereof,
and
2
such
withholding
agents
and
such
nonresidents
shall
be
subject
3
to
the
provisions
of
this
section
,
according
to
the
context,
4
except
that
such
withholding
agents
may
be
absolved
of
such
5
requirement
to
withhold
taxes
from
such
nonresident’s
income
6
upon
receipt
of
a
certificate
from
the
department
issued
in
7
accordance
with
the
provisions
of
section
422.17
,
as
hereby
8
amended.
In
the
case
of
nonresidents
having
income
from
a
9
trade
or
business
carried
on
by
them
in
whole
or
in
part
within
10
the
state
of
Iowa,
such
nonresident
shall
be
considered
to
be
11
subject
to
the
provisions
of
this
subsection
unless
such
trade
12
or
business
is
of
such
nature
that
the
business
entity
itself,
13
as
a
withholding
agent,
is
required
to
and
does
withhold
Iowa
14
income
tax
from
the
distributions
made
to
such
nonresident
from
15
such
trade
or
business.
16
Sec.
13.
Section
422.16,
subsection
12,
paragraph
c,
Code
17
2021,
is
amended
by
striking
the
paragraph.
18
Sec.
14.
NEW
SECTION
.
422.16B
Pass-through
entity
composite
19
returns.
20
1.
As
used
in
this
section,
unless
the
context
otherwise
21
requires:
22
a.
“Nonresident
member”
means
a
partner
in
a
partnership
as
23
defined
in
section
422.25A,
a
shareholder
of
an
S
corporation,
24
or
a
beneficiary
of
an
estate
or
trust,
who
is
any
of
the
25
following:
26
(1)
An
individual
who
is
not
a
resident
of
this
state.
27
(2)
A
partnership
without
a
commercial
domicile
in
this
28
state.
29
(3)
A
trust
or
estate
without
a
situs
in
this
state.
30
(4)
A
C
corporation
or
S
corporation
without
a
commercial
31
domicile
in
this
state.
32
(5)
A
financial
institution
as
defined
in
section
422.61
33
without
a
commercial
domicile
in
this
state.
34
b.
“Pass-through
entity”
includes
any
entity
that
is
a
35
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partnership
or
a
pass-through
entity
as
those
terms
are
defined
1
in
422.25A.
2
c.
“Tiered
pass-through
entity”
means
a
member
of
a
pass-
3
through
entity
that
is
itself
a
pass-through
entity.
4
2.
a.
(1)
A
pass-through
entity
shall
file
a
composite
5
return
on
behalf
of
all
nonresident
members
and
shall
report
6
and
pay
the
income
or
franchise
tax
imposed
under
this
chapter
7
at
the
maximum
state
income
or
franchise
tax
rate
applicable
8
to
the
member
under
section
422.5A,
422.33,
or
422.63
on
the
9
nonresident
members’
distributive
shares
of
the
income
from
the
10
pass-through
entity.
11
(2)
The
tax
rate
applicable
to
a
tiered
pass-through
entity
12
shall
be
the
maximum
state
income
tax
rate
under
section
13
422.5A.
14
b.
The
composite
return
is
due
and
shall
be
filed
by
the
15
due
date
of
the
pass-through
entity’s
annual
return
required
16
under
section
422.14,
422.15,
or
422.36,
including
extensions.
17
The
return
shall
be
on
a
form
prescribed
by
the
department
18
showing
the
total
amounts
paid
or
credited
to
the
pass-through
19
entity’s
nonresident
members,
the
amounts
of
income
or
20
franchise
tax
remitted
in
accordance
with
this
section,
if
any,
21
and
such
other
information
as
the
department
may
require.
A
22
pass-through
entity
shall
furnish
to
its
nonresident
members
a
23
record
of
the
amount
of
Iowa
income
or
franchise
tax
remitted
24
on
behalf
of
such
nonresident
member
in
the
manner
and
form
25
prescribed
by
the
department.
26
c.
The
Iowa
income
or
franchise
tax
on
the
composite
return
27
is
due
on
and
shall
be
paid
by
the
due
date
of
the
pass-through
28
entity’s
annual
return
required
under
section
422.14,
422.15,
29
or
422.36,
without
extensions.
30
3.
a.
A
pass-through
entity
is
liable
to
the
state
for
31
the
payment
of
the
tax
required
to
be
remitted
under
this
32
section,
together
with
applicable
interest
and
penalties,
33
but
is
not
liable
to
any
nonresident
member
for
any
amount
34
withheld
from
distributions
to
or
from
the
distributive
share
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of
such
nonresident
member
and
remitted
in
compliance
with
this
1
section.
2
b.
If
a
pass-through
entity
fails
to
pay
any
amount
of
tax
3
required
under
this
section
and
thereafter
the
tax
is
paid
4
by
the
nonresident
member,
the
amount
of
tax
as
paid
by
the
5
nonresident
member
shall
not
be
collected
from
the
pass-through
6
entity,
but
such
payment
by
the
nonresident
member
shall
not
7
relieve
the
pass-through
entity
from
any
penalty
or
interest
8
associated
with
the
failure
to
pay.
9
4.
a.
A
nonresident
member
that
has
been
included
on
a
10
composite
return
filed
pursuant
to
this
section
shall
receive
11
credit
for
Iowa
income
or
franchise
tax
paid
on
the
nonresident
12
member’s
behalf
by
the
pass-through
entity,
and
any
amounts
in
13
excess
of
the
nonresident
member’s
Iowa
tax
liability
for
the
14
applicable
tax
period
may
be
refunded
to
the
nonresident
member
15
with
interest
in
accordance
with
section
421.60,
subsection
16
2,
paragraph
“e”
.
The
nonresident
member’s
Iowa
return
shall
17
constitute
a
claim
for
refund
for
this
purpose.
In
lieu
of
18
claiming
a
refund,
the
nonresident
member
may
elect
to
have
the
19
overpayment
shown
on
the
nonresident
member’s
final,
completed
20
return
for
the
taxable
year
credited
to
the
taxpayer’s
tax
21
liability
for
the
following
taxable
year.
22
b.
A
tiered
pass-through
entity
shall
be
subject
to
the
23
same
requirements
to
file
a
composite
return
and
pay
tax
24
under
this
section
with
respect
to
the
distributive
shares
25
of
the
tiered
pass-through
entity’s
income.
Any
Iowa
income
26
or
franchise
tax
paid
on
the
tiered
pass-through
entity’s
27
behalf
by
another
pass-through
entity
may
be
applied
against
28
that
tiered
pass-through
entity’s
own
composite
tax
remittance
29
obligation
imposed
under
this
section.
30
c.
A
nonresident
individual
included
on
a
composite
tax
31
return
filed
pursuant
to
this
section
shall
be
relieved
of
32
the
requirement
to
file
an
individual
income
tax
return
under
33
section
422.13
if
income
from
the
pass-through
entity
is
the
34
nonresident
individual’s
only
Iowa-source
income.
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5.
A
pass-through
entity
shall
not
be
required
to
remit
Iowa
1
income
or
franchise
tax
on
behalf
of
a
nonresident
member
if
2
any
of
the
following
apply:
3
a.
The
pass-through
entity
is
a
publicly
traded
partnership
4
as
defined
in
section
7704(b)
of
the
Internal
Revenue
Code,
5
provided
the
publicly
traded
partnership
files
with
the
6
department
an
information
return
that
reports
the
name,
7
address,
taxpayer
identification
number,
and
any
other
8
information
requested
by
the
department
for
each
unit
9
holder
with
an
income
in
this
state
from
the
publicly
traded
10
partnership
in
excess
of
five
hundred
dollars.
11
b.
A
composite
return
is
not
required
as
provided
in
section
12
29C.24.
13
c.
The
department
determines
by
rule
or
through
a
ruling
14
that
the
nonresident
member’s
income
should
not
be
subject
to
15
composite
return
reporting,
such
as
a
member
that
is
exempt
16
from
Iowa
income
or
franchise
tax.
17
6.
If
the
director
determines
that
it
is
necessary
for
the
18
efficient
administration
of
this
chapter,
the
director
may
19
require
that
a
composite
return
be
filed
for
nonresidents
other
20
than
nonresident
members
of
a
pass-through
entity.
21
7.
All
powers
of
the
director
and
requirements
of
the
22
director
apply
to
returns
filed
under
this
section
including
23
but
not
limited
to
the
provisions
of
this
subchapter
and
24
subchapter
VI.
The
provisions
of
section
422.16,
subsection
25
2,
paragraph
“c”
,
and
subsections
6,
10,
and
14,
applying
26
to
withholding
agents,
shall
apply
in
the
same
manner
to
27
pass-through
entities
under
this
section.
28
8.
For
the
efficient
administration
of
this
chapter,
the
29
director
may
require
or
provide
for
the
composite
return
on
the
30
same
form
as
or
combined
with
a
pass-through
entity’s
annual
31
return
required
under
section
422.14,
422.15,
or
422.36,
but
in
32
such
case
the
composite
return
shall
be
considered
a
separate
33
return
for
purposes
of
this
chapter
and
section
421.27.
34
Sec.
15.
APPLICABILITY.
This
division
of
this
Act
applies
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to
tax
years
beginning
on
or
after
January
1,
2022.
1
DIVISION
III
2
PUBLIC
AGENCY
DISCLOSURE
——
TAX-EXEMPT
ENTITIES
——
DEPARTMENT
3
OF
REVENUE
4
Sec.
16.
2021
Iowa
Acts,
House
File
309,
if
enacted,
is
5
amended
by
adding
the
following
new
section:
6
SEC.
6A.
NEW
SECTION
.
22A.6
Applicability
——
department
7
of
revenue.
8
1.
The
following
shall
not
be
construed
as
a
violation
of
9
this
chapter
with
respect
to
the
department
of
revenue:
10
a.
The
identification
of
a
person
as
a
representative,
11
responsible
party,
employee,
withholding
agent,
or
other
12
signatory
or
contact
of
an
entity
exempt
from
taxation
under
13
section
501(c)
of
the
Internal
Revenue
Code
on
any
return,
14
form,
application,
or
other
document
required
to
be
filed
with
15
the
department,
including
but
not
limited
to
a
tax
return
or
16
tax
permit.
17
b.
Powers
exercised
under
section
422.70.
18
c.
Information
sought
pursuant
to
discovery
in
a
contested
19
case
proceeding.
20
d.
Information
that
is
expressly
required
to
be
provided
21
by
the
department
by
law
including
but
not
limited
to
section
22
422.11S.
23
2.
The
restrictions
imposed
under
this
chapter
shall
not
24
be
construed
to
entitle
any
taxpayer
or
tax-exempt
entity
to
25
any
deduction,
exemption,
credit,
or
other
tax
position
which
26
the
taxpayer
or
exempt
entity
is
unable
to
substantiate
with
27
sufficient
evidence.
28
EXPLANATION
29
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
30
the
explanation’s
substance
by
the
members
of
the
general
assembly.
31
This
bill
relates
to
the
administration
of
the
tax
and
32
related
laws
by
the
department
of
revenue
by
requiring
33
composite
returns
for
pass-through
entities,
restricting
public
34
disclosure
of
certain
information,
and
modifying
penalty
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provisions.
1
DIVISION
I.
The
bill
updates
language
in
Code
section
421.27
2
(penalties)
to
enhance
the
readability
of
the
Code
section.
3
The
bill
specifies
that
the
taxpayer
has
the
burden
to
prove
4
any
of
the
conditions
necessary
to
waive
a
penalty
under
Code
5
section
421.27.
6
The
bill
modifies
the
penalty
for
the
failure
of
a
person
to
7
file
a
return
from
10
percent
of
the
tax
shown
due
or
required
8
to
be
shown
due
to
5
percent
of
the
unpaid
tax.
9
Currently,
if
a
business
fails
to
file
a
return,
the
business
10
pays
a
penalty
of
$200
or
an
amount
equal
to
10
percent
of
the
11
imputed
Iowa
liability,
not
to
exceed
$25,000,
whichever
is
12
greater.
The
bill
modifies
the
penalty
provision
to
specify
13
the
business
pays
a
penalty
of
$200
or
an
amount
equal
to
5
14
percent
of
the
imputed
Iowa
liability,
not
to
exceed
$25,000,
15
whichever
is
greater.
16
The
bill
specifies
the
penalties
for
failure
to
timely
file
a
17
return
are
in
addition
to
any
other
penalty
provided
by
law.
18
The
bill
specifies
that
a
taxpayer
who
is
required
to
file
a
19
quarterly
or
monthly
return
may
have
one
late
return
or
payment
20
over
a
three-year
period
before
being
ineligible
to
receive
a
21
waiver
of
a
penalty
for
failing
to
file
a
return.
22
Currently,
there
are
14
conditions
a
taxpayer
may
raise
23
in
order
to
be
eligible
to
receive
the
waiver
of
a
penalty
24
for
failing
to
file
a
return.
The
bill
strikes
one
of
these
25
conditions
relating
to
the
failure
to
file
an
inheritance
tax
26
return
that
resulted
from
a
disclaimer,
so
in
such
a
situation
27
the
penalty
is
not
waivable.
28
The
penalty
for
failing
to
timely
pay
tax
due
is
modified
by
29
the
bill
by
assessing
a
5
percent
penalty
against
the
unpaid
30
tax
due
rather
than
5
percent
of
the
tax.
31
The
bill
allows
most
conditions
a
taxpayer
may
raise
in
order
32
to
be
eligible
to
receive
a
waiver
of
a
penalty
for
failing
to
33
file
a
return
to
apply
to
the
waiver
of
the
penalty
for
failing
34
to
timely
pay
a
tax
due.
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If
any
person
fails
to
pay
the
tax
due
and
the
department
1
of
revenue
discovers
the
underpayment,
the
bill
modifies
the
2
penalty
from
5
percent
of
the
tax
to
5
percent
of
the
unpaid
3
tax.
The
bill
specifies
such
a
penalty
is
in
lieu
of
the
4
penalty
for
failing
to
timely
pay
a
tax
due.
5
The
bill
modifies
the
penalty
for
willful
failure
to
file
a
6
return
or
pay
a
tax
from
75
percent
of
the
tax
required
to
be
7
shown
or
shown
due
to
75
percent
of
the
unpaid
tax.
8
The
bill
strikes
a
provision
specifying
which
penalties
are
9
applicable
if
a
person
fails
to
file
a
return
or
fails
to
pay
10
the
tax,
and
willfully
fails
to
file
a
return
or
willfully
11
files
a
false
return.
12
The
bill
modifies
the
criminal
offense
of
fraudulent
13
practice
relating
to
state
taxes
to
include
actions
of
a
14
taxpayer
who
willfully
submits
any
false
information
in
support
15
of
the
taxpayer’s
taxes
with
the
intent
to
receive
a
refund,
16
credit
exemption,
reimbursement,
rebate,
or
other
payment
or
17
benefit,
to
which
the
tax
person
is
not
entitled.
18
The
bill
modifies
the
criminal
offense
of
fraudulent
19
practice
relating
to
state
taxes
to
include
actions
of
a
20
taxpayer
who
willfully
submits
false
information
in
support
of
21
an
application
for
a
refund
with
the
intent
to
evade
tax
or
22
receive
a
refund.
23
The
bill
provides
that
the
criminal
offense
of
fraudulent
24
practice
is
not
waivable
by
the
department
of
revenue.
25
The
penalties
for
fraudulent
practice
range
from
a
simple
26
misdemeanor
to
a
class
“C”
felony
depending
upon
the
amount
of
27
money
or
value
of
property
involved.
28
The
bill
modifies
the
penalty
for
failure
to
use
a
required
29
tax
form
to
include
failure
to
use
the
required
manner
to
remit
30
taxes.
The
penalty
is
modified
from
5
percent
of
the
amount
of
31
tax
due
or
required
to
be
shown
due
to
5
percent
of
the
amount
32
remitted
in
the
incorrect
form
or
manner
not
to
exceed
$500
per
33
instance
of
incorrect
form
or
manner.
The
bill
specifies
the
34
penalty
is
in
addition
to
any
other
penalty
provided
by
law.
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Currently,
in
addition
to
any
other
tax
penalty,
if
a
1
taxpayer
fails
to
file
a
return
within
90
days
of
written
2
notice
by
the
department
of
revenue,
a
$1,000
penalty
is
added
3
to
the
amount
of
tax
shown
due
or
required
to
be
shown
due.
4
The
bill
modifies
the
penalty
by
requiring
the
department
of
5
revenue
to
send
a
written
demand
to
file
a
tax
return,
and
if
6
the
taxpayer
fails
to
file
the
return
under
rules
adopted
by
7
the
department,
a
$1,000
penalty
is
assessed
against
the
amount
8
due.
9
The
bill
specifies
the
order
in
which
a
payment
will
be
10
applied
if
a
taxpayer
has
multiple
unpaid
tax
periods.
11
The
bill
amends
Code
section
423.14(2)(b)
by
specifying
12
that
a
seller
of
tangible
personal
property
and
specified
13
digital
products
who
is
not
otherwise
required
to
collect
sales
14
tax
may,
but
is
not
required
to,
collect
and
remit
use
tax.
15
Current
law
requires
the
seller
to
collect
and
remit
the
use
16
tax
for
such
sales.
17
The
bill
strikes
the
requirement
that
the
director
of
18
revenue
biennially
submit
a
report
to
the
governor
and
19
legislature
containing
recommendations
for
improvement
to
the
20
system
of
taxation
in
the
state.
21
The
bill
allows
the
department
of
revenue
to
cancel
22
withholding
tax,
sales
tax,
or
use
tax
permits
the
department
23
has
verified
are
no
longer
in
use.
The
department
may
cancel
24
the
permits
from
July
1,
2021,
through
December
31,
2021.
25
DIVISION
II.
The
bill
establishes
procedures
and
26
requirements
for
filing
a
composite
return
by
a
pass-through
27
entity.
A
composite
return
is
a
single
income
tax
return
that
28
reports
the
state
income
of
numerous
nonresident
owners.
The
29
bill
requires
a
pass-through
entity
to
file
a
composite
return
30
on
behalf
of
all
nonresident
owners
of
the
pass-through
entity
31
based
upon
the
nonresident
owner’s
Iowa-source
income
from
32
the
pass-through
entity
at
the
top
individual,
corporate,
or
33
franchise
state
tax
rate,
as
applicable.
The
bill
strikes
34
provisions
requiring
a
pass-through
entity
to
withhold
and
35
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remit
taxes
on
nonresident
distributions
made
during
the
1
course
of
the
tax
year.
If
a
nonresident
individual
owner
of
2
a
pass-through
entity
has
only
Iowa-source
income
from
the
3
pass-through
entity
and
a
composite
return
is
filed,
the
bill
4
relieves
the
individual
of
the
obligation
to
file
an
individual
5
income
tax
return,
though
the
individual
may
choose
to
file
6
such
a
return.
7
The
bill
amends
Code
section
29C.24(3)(a)(3)
by
exempting
8
a
pass-through
entity
from
filing
a
composite
return
in
this
9
state
if
the
contact
with
this
state
is
to
conduct
business
10
in
this
state
solely
for
the
purpose
of
performing
disaster
11
relief.
12
The
bill
specifies
that
a
nonresident
that
has
been
included
13
on
a
composite
return
shall
receive
credit
for
Iowa
income
14
or
franchise
tax
paid
on
the
nonresident
member’s
behalf
by
15
the
pass-through
entity,
and
any
amounts
in
excess
of
the
16
nonresident
member’s
Iowa
tax
liability
for
the
applicable
tax
17
period
may
be
refunded
to
the
nonresident
member.
18
The
bill
provides
that
a
tiered
pass-through
entity
is
19
subject
to
the
same
requirements
to
file
a
composite
return
and
20
pay
tax
on
the
distributive
shares
of
the
tiered
pass-through
21
entity’s
income.
The
bill
defines
a
tiered
pass-through
entity
22
to
mean
a
member
of
a
pass-through
entity
that
is
itself
a
23
pass-through
entity.
24
If
the
director
of
revenue
determines
it
necessary
for
25
efficient
administration,
the
director
may
require
a
pass-
26
through
entity
to
file
a
composite
return
for
nonresidents
27
other
than
nonresident
members
of
the
pass-through
entity.
28
The
bill
makes
the
due
date
of
a
composite
return
coincide
29
with
the
pass-through
entity’s
regular
annual
tax
return
due
30
date.
31
The
bill
specifies
certain
circumstances
when
a
pass-
32
through
entity
is
not
required
to
remit
Iowa
income
or
33
franchise
tax
on
behalf
of
a
nonresident
member.
34
DIVISION
III.
The
bill
amends
new
Code
chapter
22A,
if
35
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enacted
by
2021
Iowa
Acts,
House
File
309,
relating
to
the
1
public
disclosure
of
information
relating
to
a
tax-exempt
2
entity
by
a
public
agency.
The
bill
provides
that
a
violation
3
of
Code
chapter
22A
does
not
occur
if
the
department
of
4
revenue
does
any
of
the
following:
identifies
a
person
as
a
5
representative,
responsible
party,
employee,
withholding
agent,
6
or
other
signatory
or
contact
of
an
entity
exempt
from
taxation
7
on
any
return,
form,
application,
or
other
document
required
8
to
be
filed
with
the
department;
exercises
powers
under
9
Code
section
422.70
(general
powers
——
hearings);
discloses
10
information
sought
pursuant
to
a
contested
case;
or
discloses
11
information
expressly
required
by
law
including
disclosures
12
pursuant
to
Code
section
411.11S
(student
tuition
organization
13
tax
credit).
The
bill
states
disclosure
restrictions
imposed
14
under
Code
chapter
22A,
if
enacted,
shall
not
be
construed
to
15
entitle
any
taxpayer
or
tax-exempt
entity
to
any
deduction,
16
exemption,
credit,
or
other
tax
position
which
the
taxpayer
17
or
exempt
entity
is
unable
to
substantiate
with
sufficient
18
evidence.
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