<%@LANGUAGE="JAVASCRIPT" CODEPAGE="1252"%> Iowa Department of Revenue electronic newsletter: Iowa Tax eNews
MARCH 2007
graphic for Iowa Department of Revenue Tax eNews electronic newsletter


Message from the Director
:

Spring is here and the Department is busy with tax returns. We receive approximately 1.5 Million individual tax returns by April 30th . Ninety-six percent of you who e-file will receive your refunds within 14 days. It is a busy time for the Department and requires an all out effort by our employees.

We will, during this time, provide responsive and accurate services in a fair and respectful manner. Our goal is to enable all taxpayers to comply with Iowa 's tax laws. To assist you, I am providing key telephone numbers for Department staff. Please call for assistance at:

Taxpayer Services: 1-800 367-3388 or (515) 281-3114

eFile & Pay: idrefile@iowa.gov . 1-866 503-3453 or (515) 281-8453

Forms and Publications:

Tax Fax: 1-800 572-3943

Order paper forms: 1-800 532-1531 or (515) 281-7239

Refund Status: 1-800 572-3944 or (515) 281-4966

Please provide any suggestions you may have. We will continue to change to address your needs.

Mark R. Schuling
Director

Automatic Extension of Time to File Iowa Corporation Income Tax Returns

All taxpayers who have paid 90% or more of their correct tax on or before the original due date of their return automatically have an additional six months in which to file their return and pay any additional tax due with no penalty.

Taxpayers who have not paid 90% or more of their correct tax on or before the original due date of their corporation income tax return are not allowed the six month additional period of time to file and will owe penalty on the additional tax due after the original due date of their return. If an additional payment is necessary in order to meet the 90% requirement, it must be made/postmarked by the original due date of the return. Such payments can be made online through the department's eFile & Pay system or by using form 42-019 (pdf) , Iowa Corporation Tax Payment Voucher.

Please note that whether or not the additional six months is allowed, interest will accrue on any tax due after the original due date of the return. All elections made on a return filed within six months of the original due date will be considered timely.

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; however, effective 7/1/06 a casual sale exemption exists if (1) the owner of the business is the only person performing the services; (2) the owner of the business is a full-time student; and (3) total gross receipts from the services do not exceed $5,000 for a calendar year. Please see our handout on landscaping and lawn care. (pdf)

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.

Registering for a tax permit

When applying for sales tax or withholding tax permit online, don't forget to go to the top of the second page of the application and click on “GET PIN.” Print your PIN (personal identification number) information. If you need to quit in the middle of applying, you can exit and then continue later using the PIN. If you have not obtained the PIN and have timed out, simply start the application over.

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!

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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