from the Director:
The Legislature is in session
and sales and income tax changes are being discussed. This is not new.
Each year tax issues are discussed and some changes are written into
law. The impact of the changes on Iowans varies year to year. Please
understand that once the changes become law, the Department works hard
to make the transitions as easy as possible on Iowans.
After the session concludes,
we will write or amend rules to address the changes. The rules explain
and often provide examples of how the taxes are to be applied. The
Department maintains a research library on the Department's Web site,
www.state.ia.us/tax, and the Legislature maintains a Web site that
has all the administrative rules, www.legis.state.ia.us/IAC.
Forms will be changed only
as necessary to minimize impact on your filings. Correspondence will
be sent on issues that need further explanation. Additionally, we have
tax specialists available to answer your phone calls, 515/281-3114
or 1-800-367-3388 (Iowa only), and your e-mails, firstname.lastname@example.org.
We are here to serve Iowans
and to collect taxes required by law, but no more. If we can be of
service, please let us know.
Mark R. Schuling
Tax Permit Certificate
You are not required to post
your sales tax permit at your place of business. Therefore, we do not
provide a certificate for that purpose.
The Department sends postcards
to new permit holders to notify them of their sales tax permit numbers. Confidential
information is not printed on the postcard. Therefore, while it is
not required to be displayed, it can be if the business chooses.
The postcard can also be used
to verify to vendors that your business does have a permit. However,
when making a tax exempt purchase for resale, you must give the vendor
an Iowa Sales Tax Exemption Certificate (pdf).
Extension of Time to File Income
Iowa does not have an application
to extend the time to file your income tax return. In addition, we
do not accept a federal extension.
Instead, if you have paid
at least 90% of the tax you owe by the due date of your return, you
automatically have an additional six months to file your return and
pay the additional tax due with no penalty. Interest
continues to accrue on unpaid tax during the extension period.
If you need to make a payment
to meet the 90% requirement, it must be paid postmarked by April 30
for calendar year filers. You can make your payment electronically
through our eFile & Pay system
or by mail using form 41-137 (pdf)
for individuals, or form 42-019 (pdf)
about Iowa taxes
you a new business? Or just need to know more? Our
tax classes are held all year statewide.
addition, 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
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.
“Lawn care” includes
but is not limited to the following services: mowing, trimming, watering,
fertilizing, reseeding, resodding, and killing of insects, moles, other
vermin, weeds, or fungi which may be threatening a lawn.
Persons who mow lawns are
providing a taxable service regardless of their ages. However, your
services will be exempt if:
- you are the owner of your
business and the only person performing the service, and
- you are the owner of the
business and a full-time student, and
- the total gross receipts
do not exceed $5,000 for a calendar year.
Please see our handout
on landscaping and lawn care. (pdf)
Electronically and Mail Nothing!
of Iowa withholding returns and 95 percent of sales tax returns are
filed electronically through eFile & Pay.
As long as you're
filing your return through eFile & Pay, you might as well try ePay and
mail nothing! Our ePay system is safe and easy to use.
a Craft or Art Show?
special events such as craft and art shows are responsible for notifying
the Department of the event and providing a list of the vendors. If
you are a sponsor, use this
have regular Iowa sales tax permits will report their sales and tax
collected on their returns as usual.
need temporary sales tax permits should call Cheryl at 563/386-6484
x1 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 x1 or fax at 563/386-5201.
Seeds, Plants, and Fruit Trees
If your customer will be consuming
the produce from the seeds, plants or trees, the sale is taxable.
If your customer will be selling
the produce, the sale is exempt. Be sure to get a Sales
Tax Exemption Certificate (pdf) from your customer.
About eFile & Pay
About Iowa Taxes