Voluntary Disclosure Program

General Information

Scope of the Voluntary Disclosure Program

Any person located outside of Iowa who is subject to Iowa tax or tax collection responsibilities may be eligible for the voluntary disclosure program. Being subject to Iowa tax may occur when a person has Iowa-source income or has representatives or other presence in Iowa. Certain activities by these persons may create Iowa tax return filing requirements for Iowa-source income, as defined in 701- subrule 3.1(1), not previously reported. In addition, activities may also result in tax liabilities that are past due and owing.

The purpose of the voluntary disclosure program is to encourage unregistered business entities and persons to voluntarily contact the Department regarding unreported Iowa-source income. The person or the person's representative may initially contact the Department on an anonymous basis. Anonymity of the taxpayer can be maintained until the voluntary disclosure agreement is executed by the taxpayer and the Department.

The voluntary disclosure program may be used by the Department and the taxpayer to report previous periods of Iowa-source income and to settle outstanding tax, penalty, and interest liabilities, but it must also ensure future tax compliance by the taxpayer.

Type of Taxes Eligible

Only taxes, penalties, and interest related to Iowa-source income are eligible for settlement under the voluntary disclosure program. For purposes of this rule, "Iowa-source income" means the tax base and the tax collection responsibility for the following enumerated taxes: corporate income tax, franchise tax, fiduciary income tax, withholding income tax, individual income tax, local option school district income surtax, state sales tax, state use tax, motor fuel taxes, cigarette and tobacco taxes, and local option taxes.

Eligibility of the Taxpayer

The Department has discretion to determine who is eligible for participation in the voluntary disclosure program. In making the determination, the Department may consider the following factors:

  1. The location of the person must be outside of Iowa;
  2. The person must be subject to Iowa tax on Iowa-source income or have Iowa tax collection responsibilities;
  3. The person must not currently be under audit or examination by the Department or under criminal investigation by the Department;
  4. The person must not have had any prior contact with the Department or a representative of the Department which could lead to audit or assessment associated with the tax types or tax periods sought to be addressed under the program;
  5. The type and extent of activities resulting in Iowa-source income;
  6. Failure to report the Iowa-source income or pay any liability was not due to fraud, intentional misrepresentation, an intent to evade tax, or willful disregard of Iowa tax laws; and
  7. Any other factors which are relevant to the particular situation.

To Apply for the Voluntary Disclosure Program...

...the person or the person's representative must submit a written application to:

Nonfiler Unit
Compliance Division
Iowa Department of Revenue
PO Box 10456
Des Moines, Iowa 50306-0456

For More Information

Chapter 3 of Department's rules: Voluntary Disclosure Program

E-mail Iowa Taxpayer Services or

Call 1-800-367-3388 (Iowa, Omaha, Rock Island, Moline) or 515-281-3114, or

Send a written request to:

Program Manager, Nonfiler Unit
Compliance Division
Iowa Department of Revenue
PO Box 10456
Des Moines, IA 50306-0456