Iowa Department of Revenue
Corporation Income Tax Refund Claims
Processing IA1139

Iowa Department of Revenue processing procedure for IA1139 refund claims.

Previously, interest started on the day a claim was filed, regardless of whether a complete claim was filed. A copy of the federal 1139 is required with the IA1139 refund claim but is missing from several refund claims every year. In the past, instead of denying the claim for insufficient information, we would write the taxpayer for the additional information. Interest would continue to accrue while waiting for a response. In our current process, we still write for the information if the claim is not complete. However, interest on the claim for refund will not start until all the required information, as stated on the IA1139 instructions, is received.

There are a couple obvious cases where a federal 1139 would not be applicable. If Iowa deductions create the loss, no federal 1139 is required, and interest accrues from the date the claim was mailed. Second, the consolidated group for a company with filing status 2 or 3 may have taxable income. In this case, you should provide a copy of pages 1 through 4 of the consolidated return with the IA1139.

We no longer require information verifying the IRS accepted or adjusted the federal 1139 to be attached to the IA 1139. The department will request this on a case-by-case basis.

If you have questions, please contact the Department by e-mail

December 17, 2003