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FAQs  Answers
to your questions about  File & Pay
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Am
I required to file business tax returns electronically? |
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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 statute to be filed electronically. |
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When
can I set up my eFile & Pay account? |
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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 Business eFile Number by the
due date of a return, the department will accept a one-time
paper filing of that return. |
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Can
I file any of my returns online for free? |
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Yes. All
returns may be filed online free of charge. |
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When
I file a return showing no sales and, therefore, no
tax, do I send in a payment voucher showing a zero
payment? |
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No,
do not send in a payment voucher for zero returns. |
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If
I choose “Save and Finish Later” when filing a return,
how do I go in later and retrieve the return? |
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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?” Important Note: Saved returns remain in the system for seven (7) days only. |
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How
do I amend a return? |
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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 this application 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, payment 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. |
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Is
there a penalty imposed for not timely filing returns
and paying tax? |
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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 percent 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 percent of the amount of tax due will be added.
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If
I'm filing late, how do I compute the interest due? |
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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%
Interest is computed on an entire-month basis, not daily.
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Can
I make payments electronically? |
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Yes.
Electronic payment options include ePay
(bank debit), credit card, and ACH Credit (through your
financial institution). If you pay electronically,
you do not send a payment voucher. The credit card option
is not currently available for LPG or motor fuel tax
payments.
Credit
Card: Please
note that the credit card vendor charges a 2.5% fee.
A credit card payment needs to be completed by 4 p.m.
CT on the due date to be timely.
ePay
is free of charge. Additional
information on these payment options can be obtained
through the eFile & Pay
application. |
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Do
I have to pay electronically? |
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If
you were required to pay electronically prior to eFile & Pay,
you still are.
We
recommend electronic payment for all filers, but you
do have the option of paying by check and using the appropriate
payment voucher. If you pay electronically, you do not
send a payment voucher.
Motor
Fuel Tax: Please
note that all Iowa fuel taxes, now including LPG, must
be paid electronically through ePay or ACH Credit. |
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Is
there a charge if I pay my balance due online? |
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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. |
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Can
I make a direct debit ePayment on a return before I file
it? |
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No.
We require a return to be completed through eFile & Pay
prior to an ePayment being submitted. |
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Can
I make multiple payments on one return? |
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Yes. |
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What
do I do if I don't receive my payment vouchers for paying
business taxes? |
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The payment voucher packet contains all the tax periods needed for that year. If you do not receive the payment vouchers, please call the applications department 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 later and Acrobat Reader
version 6.0.1 or later.
Payment
vouchers are not available on the Tax Fax system or
on the Web site.
Note: If you eFile and ePay, nothing is mailed.
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 regarding the requirement to pay fuel taxes electronically.
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When
I file a return showing no sales and, therefore, no tax,
do I send in a payment voucher showing a zero payment? |
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No, do not send in a payment
voucher for zero returns. |
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If
I mail a payment on the due date, is it considered timely? |
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Yes,
if it is postmarked on or before the due date, no penalty
is charged. |
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How
far into the future can I set up a payment? |
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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. |
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If
I choose to pay by ePay (also known as direct debit and
ACH Debit), when does the transaction need to be submitted
to be considered timely? |
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ePayments
must be transmitted by 4 p.m. Central Time on the due
date to be considered timely. This is a change from prior
department policy, which required EFT payments to be initiated
one day prior to the due date. If you pay electronically,
you do not send a payment voucher. |
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Can
I cancel an ePayment? |
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Yes. Payments may be cancelled
at least one business day before payment date, or before
3:00 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 cancellation must be completed that same day
by 3:00 p.m. CT. |
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If I choose to pay by ACH Credit,
when does the transaction need to be submitted to be considered
timely? |
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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. |
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How
do I cancel a credit card payment? |
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Credit card payments are made
through Official Payments Corp. Once your payment information
is submitted, the transaction is complete. |
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Can
a credit card payment be reversed? |
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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. |
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What
if I overpaid? How do I get a refund? |
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Withholding: If
you have overpaid withholding, you may amend the appropriate
quarterly return to request a refund.
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 (pdf).
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. |
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Is
there a penalty imposed for not timely filing returns and
paying tax? |
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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 percent 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 percent of the amount
of tax due will be added.
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What
tax types are classified as business taxes? |
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Withholding, sales, retailer's
use, consumer's use, LPG and motor fuel. |
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Am
I required to file business tax returns electronically? |
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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 statute to be filed electronically.
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Do
I need to register to use eFile& Pay to pay my
business taxes? |
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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 correspondence about the filing process
on eFile & Pay. This applies to all business tax filers,
including current EFT/semi-monthly filers. |
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How
do I apply for a permit or license? |
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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. |
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Do
I need a different permit for each business location? |
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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 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. |
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If
I change the name of my business, do I need a new permit? |
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If the Internal Revenue Service allows you
to keep the same Federal 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.
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What
is the difference between a sales tax permit and a retailer's
use tax permit? |
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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. |
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Do
I need a consumer's use tax permit? |
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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. |
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I
have a consumer's use tax permit and a sales tax
permit. Do I need both? |
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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. |
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How
do I cancel a permit? |
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To cancel a permit: Change/cancel/reinstate
business tax registration
Your online cancellation will be processed in approximately four weeks. |
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What
are the criteria for the different filing frequencies? |
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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. |
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How
do I register for unemployment tax? |
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Contact
Unemployment
Insurance Services Division of Iowa Workforce Development
at 515-281-5339 or 1-800-972-2024.
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How
do I register for workers compensation? |
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Contact
Division of
Workers' Compensation of Iowa Workforce Development
at 515-281-5387 or 1-800-562-4692 or by
e-mail .
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| 1-866-503-3453
(Iowa only) Please include your name, tax ID number, and daytime phone number. If your question is complex, we may need to call you. |
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| 1-800-367-3388
(Iowa, Omaha, Rock Island, Moline) |
Central
Time |
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