H.F. 680 Section 1. Section 421.60, subsection 2, paragraph b, Code 1 2025, is amended to read as follows: 2 b. The department shall furnish to the taxpayer, before 3 or at the time of issuing a notice of assessment or denial of 4 a refund claim, an a detailed explanation of the reasons for 5 the assessment or refund denial. An inadequate explanation 6 shall not invalidate the notice. For purposes of this section , 7 an explanation by the department shall be sufficient where 8 insufficient if only the amount of tax, interest, and penalty 9 is stated together with an attachment setting forth the 10 computation of the tax by the department. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill relates to the assessment and refund denial 15 notices furnished to taxpayers by the department of revenue. 16 The bill amends Code section 421.60(2)(b) by specifying the 17 department of revenue shall furnish a detailed explanation 18 of the reasons for an assessment or refund denial notice, 19 and provides that an explanation by the department with the 20 amount of tax, interest, and penalty stated together with the 21 computations is insufficient notice. The bill also strikes a 22 provision specifying an inadequate explanation of an assessment 23 or refund denial notice does not invalidate the notice. The 24 consequences for failure to provide adequate notice by the 25 department are found in Code section 421.60(2)(c). 26 -1- LSB 2702YH (2) 91 jm/jh 1/ 1