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The Iowa Department of Revenue has updated the Iowa Tax Research Library. A brief document summary of the addition follows. Visit the What's New section to access the full documents.
Date Updated: 3-21-2022
Tax Type: Individual Income Tax
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DAVID FAITH ET AL. (DO) (2021)
Taxpayers, members of the Iowa National Guard, submitted a Petition for Declaratory Order asking the Director to review the Department's interpretation of Iowa Code section 422.7(42A) through Iowa Administrative Code rule 701--40.76. Section 422.7(42A) permits a taxpayer to "subtract, to the extent included, all pay received by the taxpayer from the federal government for military service performed while on active duty status in the armed forces" when calculating the taxpayer's Iowa net income. The Department's administrative rule interprets the Code to be limited to "members of the National Guard who are in active duty status as defined in Title 10 of the United States Code." The rule explicitly states that full-time National Guard members serving under Title 32 orders, other National Guard members who are not in an active duty status under Title 10, and National Guard members not receiving pay from the federal government are not eligible for the exclusion provided in the Code. Upon review, the Director determined that the phrase "active duty status" as used in the Code was ambiguous. The Director then concluded that various rules of statutory construction, the statute's legislative history, and the longevity of the Department's rule supported the Department's rule. As a result, the Director held that the Department's rule was reasonable and was not in error.
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SHARON DIDONATO (O) (2021)
Taxpayer appealed the Department's assessment of individual income tax. Because Taxpayer did not file individual income tax returns for the years at issues, the Department issued assessments based on information obtained from the Internal Revenue Service. Before the Administrative Law Judge, Taxpayer failed to present any evidence that the Department's assessment was in error. Noting this lack of evidence that the assessment was improper or that the calculation of assessed tax, penalty, and interest was in error, the Administrative Law Judge affirmed the Department's assessment. Upon review, the Director adopted the Administrative Law Judge's Proposed Decision, upholding the Department's assessment of tax, penalty, and interest.
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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