<%@LANGUAGE="JAVASCRIPT" CODEPAGE="1252"%> Iowa Department of Revenue electronic newsletter: Iowa Tax eNews
MARCH 2006
graphic for Iowa Department of Revenue Tax eNews electronic newsletter

Message from the Director

Education and providing the best customer service possible are the goals of the department. This is why the department a year ago created and staffed the eFile Service Unit. Iowa withholding, sales, retailer's use, consumer's use and LPG fuel taxes are now filed and can be paid electronically through eFile & Pay. Additional taxes will be added yet this year.

It was a very successful year as a result of early preparation and the cooperation between businesses and the department. The volume of returns being filed electronically exceeded our goal for the first year. We thank you for realizing this is the quickest, most efficient and most accurate way to file taxes with Iowa .

We hope you are realizing the benefits as well. The eFile Service Unit focuses on the needs of its customers. As a result, a new e-mail service is now available through eFile & Pay. The service includes reminders of upcoming quarterly due dates, information about any changes made to the eFile & Pay system, and notice that the department did not receive an electronically-filed quarterly return.

The department is recognizing and anticipates future significant efficiencies. Thousands of returns are no longer manually processed and deposited. Electronic review is replacing manual review. Money is transferred more quickly into the State's General Fund. Record storage is reduced and retrieval is quicker and simpler.

eFile & Pay is benefiting businesses and the department. Our intent is to continue to strive to improve our service to you and create efficiencies for the State of Iowa .

Mark R. Schuling

Changes for eFile & Pay

We are currently making eFile & Pay enhancements to be in place for the March quarterly filing. The changes/enhancements we are making to the applications are based on customer feedback.

One of these enhancements affects consolidated sales tax filers. Beginning April 2006, the consolidated tax entry screen changes as follows:

  • Gross Sales: An entry is required for each location, even if zero.
  • Goods Consumed: Enter the amount for each location. If nothing is entered, the system will automatically insert a zero.
  • Exemptions: Enter the amount for each location. If nothing is entered, the system will automatically insert a zero.
  • Taxable Amount is automatically calculated by the system.
  • Tax is automatically calculated by the system.

These changes will result in more complete and accurate information. Therefore, we request that you delay filing your March quarterly return until these changes have been made on April 6.

graphic of the letter eLists

The department makes every effort to inform businesses of any changes in tax law, policies and procedures. Please let your business colleagues know about the department's Business Taxes eList. By subscribing to this free news service on our Web site, businesses automatically receive Iowa tax news updates and newsletters. Anyone may sign up!

If you were notified of this newsletter by e-mail, you are already signed up. If you are reading this on our Web site, you need to sign up ! You will receive an e-mail from us asking you to confirm your subscription. Be sure to reply!

Construction Contractors Reminders

Contractors always pay tax on building materials for new construction, reconstruction and alteration unless they are issued an authorization letter and exemption certificate by certain exempt entities. Qualifying exempt entities may register their construction projects through the department's online exempt entity/construction system and provide special exemption certificates to contractors so that they may purchase materials for that project tax free. More information is available on our Web site, including an explanation of which exempt entities qualify.

Exception: Contractors are exempt from paying tax on wind energy conversion equipment. 701 IAC 18.56

Consumer's Use Tax for Businesses and Individuals

Do you purchase items from out of state or from catalogs or the Internet?
You may owe Iowa Consumer's Use Tax. Find out why and how to pay.

Landscaping, Lawn Mowing, Lawn Care

The services of landscaping, lawn mowing, and lawn care are taxable unless performed on or in connection with new construction, reconstruction, alteration, expansion, or remodeling of a building or structure. Persons who mow lawns are providing a taxable service regardless of their ages. Please see our handout on landscaping and lawn care. (pdf)

Information, please

We have a variety of publications on Iowa taxes just for specific businesses - dentists, auctioneers, printers, veterinarians, to name a few.

Planning a craft or art show?

Sponsors of special events such as craft and art shows are responsible for notifying the department of the event and providing a list of the vendors to the department. This online form is to be completed by the sponsor of the show or event.

Vendors who have regular Iowa sales tax permits will report their sales and tax collected on their returns as usual.

Vendors who need temporary sales tax permits should call Cheryl at 563/386-6484 ext. 1 or fax her at 563/386-5201.

An exhibitor shows/demonstrates products. Exhibitors who do not sell products do not need sales tax permits; however, they still need to contact the sponsor or Cheryl at 563/386-6484 ext. 1 or fax at 563/386-5201.

Classes About Iowa Business Taxes

Are you a new business? Or just need to know more? Our tax classes are held all year statewide.

We Make House Calls!

Gather your employees or your organization's membership. We will come to you and address your Iowa business tax concerns. This service is free of charge. Just e-mail us to contact you.

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