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This e-mail service from the Iowa Department of Revenue provides a brief update of new items added to the Iowa Tax Research Library.
WHAT'S NEW - A brief description of the addition follows. Visit the What's New section of the Iowa Tax Research Library to access the full document.
Date Updated: 9-28-2020
Tax Type: Individual Income Tax
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ANTHONY KEPPLER (O) (2020)
Taxpayer protested a Department determination that he was ineligible for a refund for certain amounts paid after receiving an estimated billing by the Department. The Director affirmed the Administrative Law Judge’s determination that Taxpayer did not submit a valid claim for refund pursuant to Iowa Administrative Code rule 701—43.3(1). The Director also affirmed the Administrative Law Judge’s conclusion that, even if Taxpayer had filed a valid claim for refund, such a claim would have been barred by the statute of limitations in Iowa Code section 422.73(1) and the associated administrative rules.
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BARBARA DE HAAI (O) (2020)
Taxpayer applied for and was denied a refund based upon an improperly carried forward net operating loss due to untimely filing an amended tax return and claim for refund. Taxpayer protested the denial and prior to hearing, an Administrative Law Judge granted summary judgment in favor of the Department, determining the taxpayer's refund claim was untimely filed pursuant to Iowa Code section 422.73(1). The Director affirmed the Administrative Law's Judge's grant of summary judgment.
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LEE S. TESDELL (O) (2020)
Taxpayer applied for and was denied a solar energy installation tax credit. The installation for which the credit was claimed was not “separate and distinct” from a prior installation on his property as required by Iowa Code section 422.11L and Iowa Administrative Code rule 701—42.48. Under the Department’s rule, in order to be considered “separate and distinct,” an installation must have “separate metering”—which the Department interpreted as requiring a separate connection to a utility meter. Iowa Admin. Code r. 701—42.48(4)“a”(2). The Director concluded that the phrase “separate metering” in the Department’s rule was ambiguous and upheld the Department’s interpretation in light of general rules of statutory interpretation. As a result, the Director affirmed the Department’s denial of the second solar energy installation tax credit application because Taxpayer’s installation was not “separate and distinct”. The second installation was not separately metered as required by the Iowa Code and associated administrative rule. However, based on the unique facts evidenced in the record, the Director described specific relief Taxpayer could seek.
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LEE S. TESDELL (O) (2020)
Taxpayer applied for and was denied a solar energy installation tax credit. The installation for which the credit was claimed was not “separate and distinct” from a prior installation on his property as required by Iowa Code section 422.11L and Iowa Administrative Code rule 701—42.48. As a result, the Director affirmed the Department’s denial of the second solar energy installation tax credit application because Taxpayer’s installation was not “separate and distinct”. The Director further denied an application for rehearing submitted by the Department because rehearing was not warranted based on either the facts or law as presented.
Tax Type: Property Tax
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MONTE BOWMAN (DO) (2020)
Petitioner inquired about property tax on the purchase and sale of hotels and motels in Iowa. Specifically, Petitioner asked about personal property, goodwill, and special/use value exemptions from property tax and the reporting of those exemptions. The Director refused to issue the declaratory order because the Petition failed to substantially comply with the required form; the Petition did not contain facts sufficient to demonstrate that the Petitioner would be aggrieved or adversely affected by the failure of the Department to issue an order; the questions presented by the Petition were also presented in a contested case; the questions presented by the Petition would have more properly been resolved in a different type of proceeding or by another body with jurisdiction over the matter; the facts or questions presented in the Petition were unclear, overbroad, insufficient, or otherwise inappropriate as a basis upon which to issue an order; the Petition was not based on facts calculated to aid in the planning of future conduct, but was, instead, based solely upon prior conduct, in an effort to establish the effect of that conduct or to challenge a Department decision already made; and because the Petition requested a declaratory order on an issue presently in litigation in a contested case or court proceedings.
Tax Type: Sales & Use Tax
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BUCKTAIL LODGE, INC (O) (2020)
Taxpayer protested the Department’s determination that Taxpayer had failed to show good cause to have its untimely protest reinstated. Taxpayer had been subject to a field audit that resulted in an assessment for unpaid retail sales tax, interest, and penalties. Taxpayer filed a protest with the Department more than seven years after the tax was assessed. The Department denied Taxpayer’s protest as untimely under the Department’s rules. Following the denial, Taxpayer sought to have the protest reinstated under Iowa Administrative Code rule 701—7.11(2)“c”. The Director affirmed the Administrative Law Judge’s determination that Taxpayer had failed to show “good cause” for reinstatement as required by the applicable administrative rules and concluded that reinstatement of Taxpayer’s untimely protest was not warranted. Iowa Admin. Code r. 701-7.11(2) “a”-“c”.
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FIRESTONE BUILDING PRODUCTS (DO) (2020)
Petitioner, a business that sells roofing materials to contractors in Iowa, inquired about whether its sales are subject to sales and use tax and LOST. Petitioner also inquired about whether pre-paid freight charges and additional transportation charges are subject to tax, as well as whether the department's LOST rules would be changed in the near future. The Director found that Petitioner's sales are subject to sales tax and are subject to LOST if the Iowa contractor takes delivery of the product in a jurisdiction that imposes LOST. The Director refused to answer the remaining questions based off lack of information and the question being inappropriate as a basis to issue an order.
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MIDAMERICAN ENERGY COMPANY (DO) (2020)
Petitioner, a utility company, inquired about the sales tax determination of a new inflow-outflow billing method established in Senate File 583. Specifically, Petitioner presented three sales tax scenarios (A, B, and C) and asked which tax scenario was applicable to the billing method set forth in SF 583. The Director found that the exchange of electricity for credits in dollars between Petitioner's customers and Petitioner is a trade-in under Iowa Code section 423.3(59), and therefore, the portion of the sales price credited to the customer is exempt from sales tax. Both sales tax scenario A and B considered the exchange a trade-in and the Director found that both scenarios are in compliance with the Code and the Department's administrative rules. Therefore, Petitioner may choose whether it will apply scenario A or B. Petitioner also inquired about the applicability of exemption certificates in the inflow-outflow billing method and the Director found that Petitioner is not required to provide exemption certificates to customers.
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ZIRMED, INC. (AKA WAYSTAR, INC) (DO) (2020)
Petitioner, a Kentucky-based business that provides data and bill processing services for healthcare organizations, inquired about the taxability of its service charge for printing and mailing patient statements to the healthcare organization's clients. The Director refused to issue a declaratory judgment because the petition failed to provide the statutes and rules on which the Petitioner's inquiries were based and lacked sufficient factual circumstances in order for the Director to adequately respond to the inquiries.
The mission of the Iowa Department of Revenue is to serve Iowans and support state government by collecting all taxes required by law, but no more.
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