The Iowa Tax Amnesty Act of 2007
A tax amnesty program has been established for taxpayers in the state of Iowa. From September 4, 2007 through October 31, 2007, qualifying taxpayers who have tax liabilities that were delinquent as of December 31, 2006 are provided limited relief from penalties and interest. The qualifying tax liabilities include tax due on returns not filed, tax liabilities owed to the Department of Revenue as of December 31, 2006, or tax liabilities not reported or established but delinquent as of December 31, 2006. Taxpayers allowed amnesty include individuals, corporations, or other entity subject to any tax imposed by a law of the state of Iowa, payable to the state of Iowa, and administered by the Iowa Department of Revenue.
The bill provides that taxpayers who file a written application for the amnesty and pay tax delinquencies covered by the amnesty program in full are only liable for 50% of the interest charge that would otherwise apply to such delinquencies. Failure to pay all tax liabilities due the state and delinquent as of December 31, 2006, shall invalidate the amnesty. Amnesty participants are exempt from other interest and penalty charges that might otherwise apply. Amnesty participants are considered to relinquish administrative and judicial rights to challenge the imposition of the underlying taxes and their amounts, except for adjustments made according to federal audits completed after May 24, 2007.
As part of the legislative intent in enacting the Iowa Tax Amnesty Act of 2007, another tax amnesty program cannot be conducted prior to January 1, 2025. For more information about the Iowa Tax Amnesty Act of 2007 and what steps you should implement to take advantage of the amnesty period, contact Brent McClure at (515) 223-0159 or email at bmcclure@kiesling.com.
