Getting Started
Am I required to file business tax returns electronically?
Paper returns are no longer provided, so eFile & Pay is the best option for filing your withholding, sales, retailer's use, and consumer's use returns. Fuel tax returns are required by law to be filed electronically.
When can I set up my eFile & Pay account?
Once you receive your Business eFile Number (BEN), you can go online to set up your account. You cannot use the system without this number if you are a business tax filer. If you have not been issued a BEN by the due date of a return, the Department will accept a one-time paper filing of that return.
Can I file any of my returns online for free?
Yes. All returns may be filed online free of charge through ePay (direct debit).
Filing a Return
When I file a return showing no sales and, therefore, no tax, do I send in a payment voucher showing a zero payment?
No, do not send in a payment voucher for zero returns.
If I choose “Save and Finish Later” when filing a return, how do I go in later and retrieve the return?
Go into the eFile & Pay system and log in with your BEN, User ID, and Password. In the top section of the Main Menu, click on the tax type of the saved return. For example, if your saved return was for withholding, click on Withholding and you will receive a message that says, “You have a saved return, do you wish to finish this return?”
Saved returns remain in the system for seven (7) days only.
Amending a Return
How do I amend a return?
Withholding or Sales/Use
If you discover an error on a previously-filed withholding or sales/use return, you can amend the quarterly or annual return for that period through eFile & Pay within the 3-year statute of limitations.
If you paid using ePay and are amending the same day, you must cancel that payment. Amending the return will not stop the ePayment. If you file an amended return and the payment has already been deducted from your bank account, include the payment as a deposit.
If additional payment is due, it can be made electronically. Taxpayers who are allowed to pay by mail may send a paper check.
Withholding
If an overpayment results from amending a withholding return from a prior calendar year, a refund will be issued. A refund or credit carryforward may be requested of any overpayment shown on an amended withholding return for a period in the current calendar year.
Sales/Use Taxes
If an amended sales/use tax return creates an overpayment, it will be refunded unless the period amended is the one immediately preceding the current period, on whose return a credit carryforward may be claimed.
Motor Fuel Tax
An error on a fuel tax return can be corrected by filing an amended monthly return, also within the 3-year statute, for the month in which the error occurred. An overpayment on an amended fuel tax return will be refunded. If additional payment is due, payment must be made electronically through ePay or ACH Credit.
Refunds
What if I overpaid? How do I get a refund?
Withholding
If you have overpaid withholding, you may amend the appropriate quarterly return to request a refund. You cannot use the IA 843.
Sales/Use
If you have overpaid sales/use tax, you may amend the appropriate quarterly or annual return to request a refund, or complete Iowa Department of Revenue Claim for Refund form IA 843.
Motor Fuel Tax
A refund of an overpayment on a previously-filed fuel tax return must be claimed by filing an amended fuel tax monthly return for that period.
All
Refunds will be issued if requested on a correctly-filed original tax return based on the information on that original return; an amended return is not required in that case.
Penalty for Not Filing / Paying
Is there a penalty imposed for not timely filing returns and paying tax?
Penalty for failure to timely file = 10% of the tax due, if 90% of the tax isn't paid by the due date. Penalty for failure to timely pay the tax due = 5% of the tax due, if 90% isn't paid by the due date. If both penalties apply, only the 10% penalty is charged.
Motor Fuel Tax Only
In addition to the penalties described above, the following two penalties are also applicable to fuel tax:
- Failure to pay electronically: A penalty of 5% will be added to the tax due if the payment is not received electronically through ePay or ACH Credit as required.
- Failure to use the required method of filing: The tax return information must be reported through the eFile & Pay system. If not, a penalty of 5% of the amount of tax due will be added.
Interest for Late Filing
If I'm filing late, how do I compute the interest due?
eFile & Pay will automatically calculate interest due if the return is filed late.
Interest rates are as follows:
2001, yearly: 11%, monthly: 0.9%
2002, yearly: 10%, monthly 0.8%
2003, yearly: 7%, monthly 0.6%
2004, yearly: 6%, monthly: 0.5%
2005, yearly: 6%, monthly: 0.5%
2006, yearly: 8%, monthly: 0.7%
2007, yearly: 10%, monthly: 0.8%
2008, yearly: 10%, monthly: 0.8%
2009, yearly: 8%, monthly: 0.7%
Interest is computed on an entire-month basis, not daily.
ePayments
Paying electronically makes your transaction paperless. If you pay electronically, you do not send a payment voucher. Electronic payment options include:
ePay
e Pay is free direct debit through eFile & Pay. Payment must be made by 4 p.m. CT on the due date to be timely.
Credit Card
A link to the credit card vendor is provided in eFile & Pay. Payment must be made by 4 p.m. CT on the due date to be timely. Please note that the credit card vendor charges a 2.5% fee. The credit card option is not currently available for LPG or motor fuel tax payments.
Additional Credit Card Information
ACH Credit
ACH Credit is made through your financial institution. Payment must be made on the business day before the due date to be timely.
Additional ACH Credit Information
Do I have to pay electronically?
If you were required to pay electronically prior to eFile & Pay, you still are. All Iowa fuel taxes, including LPG, must be paid electronically through ePay or ACH Credit.
If you are not required to pay electronically, you may pay by check and use a payment voucher. If you pay electronically, you do not send a payment voucher.
Is there a charge if I pay my balance due online?
ePay is free to use. However, if you choose to pay by credit card, a convenience fee will be charged by a third-party vendor.
Can I make a direct debit (ePay) on a return before I file it?
No. We require a return to be completed through eFile & Pay prior to an ePayment being submitted.
Can I make multiple payments on one return?
Yes.
How far into the future can I set up a payment?
When a return is timely filed, the payment can be set up to occur on the due date, no matter what day the return was filed. You cannot file future returns beyond the current quarter for withholding or sales/use tax.
If I choose to pay by ePay, when does the transaction need to be submitted to be considered timely?
ePayments must be transmitted by 4 p.m. CT on the due date to be considered timely. If you pay electronically, you do not send a payment voucher.
Can I cancel an ePayment?
Yes. Payments may be canceled at least one business day before payment date, or before 3 p.m. CT on the day the payment was confirmed. To cancel a current or delinquent transaction on the same day it was initiated, the cancelation must be completed that same day by 3 p.m. CT.
What if my bank information changes?
If it changes, you simply enter the new information the next time you schedule a payment.
If I choose to pay by ACH Credit, when does the transaction need to be submitted to be considered timely?
The transaction must be initiated through your own bank on the business day prior to the due date. If you pay by ACH Credit, you do not send a payment voucher.
How do I cancel a credit card payment?
Credit card payments are made through Official Payments Corp. Once your payment information is submitted, the transaction is complete.
Can a credit card payment be reversed?
To reverse a payment, you must contact Official Payments. If approved by the Department, the credit card payment is credited for the payment and the fee.
Pay by Check
Can anyone make payments by check?
No. If you were required to pay electronically prior to eFile & Pay, you still are. All Iowa fuel taxes, including LPG, must be paid electronically through ePay or ACH Credit.
What do I do if I don't receive my payment vouchers for paying business taxes?
The payment voucher packet contains all the tax periods needed for that year. If you do not receive the payment vouchers, please call us at (515) 281-3363 for new vouchers or e-mail us Please be sure to provide the tax I.D. number, business name and address, tax period, your Business eFile Number, your name and telephone number, and other pertinent information.
You may also print your payment voucher from the eFile & Pay system. Your computer system must have Internet Explorer version 5.5 or newer and Acrobat Reader version 6.0.1 or newer.
Payment vouchers are not available on the Tax Fax system or on the Web site.
Motor Fuel Tax: Payment vouchers are not provided to any Iowa fuel tax licensees, including LPG filers. Motor fuel licensees should contact the Department at 515/281-6447 or 515/242-6033 if they have questions about the requirement to pay fuel taxes electronically.
When I file a return showing no sales and, therefore, no tax, do I send in a payment voucher showing a zero payment?
No, do not send in a payment voucher for zero returns.
If I mail a payment on the due date, is it considered timely?
Yes, if it is postmarked on or before the due date, no penalty is charged.
Business Taxes
What tax types are classified as business taxes?
Withholding, sales, retailer's use, consumer's use, LPG, and motor fuel.
Am I required to file business tax returns electronically?
Paper returns are not provided, so eFile & Pay is the best option for filing your withholding, sales, retailer's use, and consumer's use returns. Fuel tax returns are required by law to be filed electronically.
Do I need to register to use eFile& Pay to pay my business taxes?
No. Taxpayers do not need to register for eFile & Pay. Any taxpayer who has an active business tax permit will receive a Business eFile Number (BEN) in the mail with information about the filing process on eFile & Pay. This applies to all business tax filers, including current EFT/semi-monthly filers.
How do I apply for a permit or license?
Withholding and Sales/Use Taxes
To apply or register for a withholding, sales, retailer's use, or consumer's use tax permit, use the Department's online application. Your online application will be processed in approximately three weeks.
Motor Fuel Tax
To apply for a fuel tax license, complete the Iowa Motor Fuel Tax License Application (pdf) and submit it to the Department as instructed on the application form.
Do I need a different permit for each business location?
Withholding
No. You have the option to obtain only one withholding permit for multiple business locations as long as they are under the same Federal Employer Identification Number (FEIN).
Sales
Yes. Each Iowa business location must have its own sales tax permit. The option is available to file a consolidated return.
Use
No. Only one permit is required.
Motor Fuel
Only one license is required for Suppliers, Restrictive Suppliers, Importers, and Blenders. LPG Dealers/Users must obtain a separate license for each location, with the option to also apply for a consolidated license.
If I change the name of my business, do I need a new permit?
If the Internal Revenue Service allows you to keep the same Federal Employer Identification Number (FEIN) you had before the name change, you keep the same Iowa permit. However, you will need to notify us of the name change. Please change your business registration name information online with us.
If the IRS requires you to obtain a new FEIN, you will cancel the Iowa permit you currently have and apply for a new one.
- Change/cancel/reinstate business tax registration (withholding, sales, use, and motor fuel)
- Register for a tax permit and/or employee withholding (withholding, sales, use)
- Iowa Motor Fuel Tax License Application (pdf) (motor fuel)
What is the difference between a sales tax permit and a retailer's use tax permit?
Persons making taxable sales from an Iowa location must apply for a sales tax permit. Those making taxable sales into Iowa from an out-of-state location should obtain a retailer's use tax permit.
Do I need a consumer's use tax permit?
Persons regularly purchasing taxable goods or services for their own use in Iowa from an out-of-state source not collecting Iowa tax must register with the Department for consumer's use tax.
I have a consumer's use tax permit and a sales tax permit. Do I need both?
Occasionally, a business will make a purchase for its own use and owe Iowa consumer's use tax. The business can report the purchase and pay the tax due on its quarterly sales tax return on Line 2 "goods consumed" instead of separately registering for consumer's use tax. If your taxable purchases are rare, you may want to consider reporting them on the sales tax return in this way. If you choose this option, you may cancel your consumer's use tax permit online or complete a paper Request for Change, Correction or Cancellation of Tax Permit (pdf) form.
How do I cancel a permit?
To cancel a permit: Change/cancel/reinstate business tax registration
Your online cancellation will be processed in approximately four weeks.
What are the criteria for the different filing frequencies?
Withholding
Semi-monthly: more than $10,000 tax/month
Monthly: more than $500 tax/month
Quarterly: less than $500 tax/month
Sales Tax
Semi-monthly: more than $5,000 tax/month
Monthly: more than $500 tax/month;
Quarterly: less than $500 tax/month
Annual: less than $120 tax/year
Retailer's Use Tax
Monthly: more than $1,500 tax/month
Quarterly: less than $1,500 tax/month
Annual: less than $120 tax/year
Consumer's Use Tax
Quarterly: more than $120 tax/year
Annual: less than $120 tax/year
Motor Fuel Tax
All filers are monthly, with the exception of Importers, who file on a semi-monthly basis.
How do I register for unemployment tax?
Contact Unemployment Insurance Services Division of Iowa Workforce Development at 515-281-5339 or 1-800-972-2024.
How do I register for workers compensation?
Contact Division of Workers' Compensation of Iowa Workforce Development at 515-281-5387 or 1-800-562-4692 or by e-mail .
Individual Income Tax (IA1040 / IA1040ES) and
Corporation Income Tax (IA1120 / IA1120ES)
Do I need to register to use eFile & Pay for individual or corporation income taxes?
No. Simply click on the Not Enrolled link from the Welcome screen to make your payment without registering. You do have the option of registering at the bottom of the Taxpayer Information screen. If you place a check mark in that box, you will be mailed a Business eFile Number by the Department and your Taxpayer Information will be retained for future use.
Is there a charge for using eFile & Pay to make income tax payments?
No.
Do I have to pay electronically?
If you were required to pay electronically prior to eFile & Pay, you still are. We recommend electronic payments for all filers, but unless you were previously required to pay electronically, this is an option.
How far into the future can I set up a payment?
Individual Estimated Tax
Payments can be scheduled in advance within a calendar year.
Corporation Estimated Tax
Payments can be scheduled in advance within the current fiscal year.
Individual or Corporation Payment of Tax Due Shown on Return
Payments can be scheduled in advance to be made on or before the due date of the return.
For Assistance with eFile & Pay, Monday-Friday, 8 a.m. to 4:15 p.m. CT
1-866-503-3453 (Iowa only) or 515-281-8453 (outside Iowa) or e-mail.
For Answers to Questions about Iowa Tax Law, Monday-Friday, 8 a.m. to 4:15 p.m. CT
1-800-367-3388 (Iowa, Omaha, Rock Island, Moline) or 515-281-3114 (outside Iowa) or e-mail.
Our response to your request may include confidential tax information. To protect your privacy, you must authorize the Department to transmit this information by e-mail. Please reply to the three questions below. We will respond to your request only after your authorization is received.
- Do you authorize the Iowa Department of Revenue to e-mail the confidential information you may request?
- To what e-mail address do you want us to send confidential information?
- Do you acknowledge that e-mail transmissions are not always secure?