HF 680 (LSB 2702YH (2) 91)

HOUSE FILE 680

BY  CROKEN

A BILL FOR

An Act relating to assessment and refund denial notices furnished to taxpayers by the department of revenue.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 421.60, subsection 2, paragraph b, Code 2025, is amended to read as follows:
   b.  The department shall furnish to the taxpayer, before or at the time of issuing a notice of assessment or denial of a refund claim, an a detailed explanation of the reasons for the assessment or refund denial. An inadequate explanation shall not invalidate the notice. For purposes of this section, an explanation by the department shall be sufficient where insufficient if only the amount of tax, interest, and penalty is stated together with an attachment setting forth the computation of the tax by the department.
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 assessment and refund denial notices furnished to taxpayers by the department of revenue.
   The bill amends Code section 421.60(2)(b) by specifying the department of revenue shall furnish a detailed explanation of the reasons for an assessment or refund denial notice, and provides that an explanation by the department with the amount of tax, interest, and penalty stated together with the computations is insufficient notice. The bill also strikes a provision specifying an inadequate explanation of an assessment or refund denial notice does not invalidate the notice. The consequences for failure to provide adequate notice by the department are found in Code section 421.60(2)(c).