'first in the nation' in income tax eFiling
For the second straight
year, the Iowa Department of Revenue has surpassed all other states
for e-filing of income tax. According to survey information from the
Federation of Tax Administrators, as a percentage of all income tax
returns received, Iowa had 55% of returns electronically filed in 2003.
Minnesota and South Carolina are second and third respectively with
50% and 49%.
I am pleased
to let Iowans know that their dedication and enthusiasm for electronic
filing of Iowa income taxes has paid numerous dividends in quicker,
more accurate returns and refunds for taxpayers and fewer processing
costs for the State of Iowa, said Iowa Department of Revenue
Director Michael Ralston.
Iowa income tax returns
can be electronically filed through most tax preparers, or over the
Internet, by telephone or using purchased software for home computers.
More information on e-filing can
be found at the Department of Revenue Web site.
procedure for IA1139 refund claims
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
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.
income tax changes for tax year 2003
We have posted a summary of Iowa income
tax changes for 2003 on the department's Web site. Information on this
page includes Federal legislation and its affect on Iowa law; tax credits
administered by the Iowa Department of Economic Development; Iowa tax
legislation; military tax benefits; and other important information.
[Editor's Note: This information was removed. Please see the 2003
few specific Iowa tax notes/reminders
- Renting equipment for construction
use is exempt if for new construction, remodeling, reconstruction,
alteration or expansion. Otherwise, the contractor must pay sales
tax on the rental price.
- Repair labor for farm machinery
is subject to sales tax, even though the farm machinery may be exempt.
removal is not a taxable service.
local option tax news
- Grundy County: Reinbeck will
NOT implement the regular local option tax on 1-1-04.
- Jefferson County: Vedic
City has changed its name to Maharishi Vedic City.
- Dallas County:
Regular local option will sunset in the following jurisdictions on
December 31, 2003: Bouton, Minburn, Perry, Redfield
- Check our Web
site for new jurisdictions beginning January 1, 2004.
- Our Excel
file shows all jurisdictions and their local option tax status.
Do you currently
pay withholding or sales tax via Electronic Funds Transfer (EFT)? You
can now do this online.
Do you want to pay
withholding or sales tax by EFT? Take a look at our EFT information.
[Editor's Note: This
system is no longer available. Returns and payments are now made through eFile & Pay.]
about Iowa taxes
Learn what you need
to know about Iowa tax and how it affects your business. In addition
to classes held at community colleges, we also make house calls! Our
tax specialists will meet with your staff and answer questions specific
to your business type.
here to locate the nearest tax specialist.
energy tax phase-out continues
Iowa House File 705
was enacted to provide a phase-out of state sales tax (but not local
option taxes) for stated periods on charges for specific types of energy.
The tax rate will drop to 2 percent beginning January 1, 2004. Click
here for more information.
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