HF 497 (LSB 2438YH (4) 91)

HOUSE FILE 497

BY  JACOBY

A BILL FOR

An Act relating to the administration of tax returns by the department of revenue, and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  421.72  Rounding to the nearest whole dollar.
   1.  For any return a taxpayer may round to the nearest whole dollar amount when entering an amount on a line on the return, but in doing so the taxpayer must then round each amount entered on a line on the return to the nearest whole dollar.
   2.  If a taxpayer is required to calculate two or more figures together to enter an amount on a line on a return, the taxpayer must include cents for each figure in the calculation but may round that calculated amount to the nearest whole dollar before entering that amount on a line on the return.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2025, for tax years beginning on or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the administration of tax returns by the department of revenue.
   The bill specifies that for any return, a taxpayer may round to the nearest whole dollar amount when entering an amount on the return, but in doing so the taxpayer must then round each amount entered on the return to the nearest whole dollar.
   If a taxpayer is required to calculate two or more figures together to enter an amount on the return, the taxpayer must include cents for each figure when calculating the figures together, but may round the calculated amount to the nearest whole dollar before entering that amount on the return.
   The bill applies retroactively to January 1, 2025, for tax years beginning on or after that date.