"Imputed Iowa liability" means the specified business's Iowa net income after the application of the Iowa business activity ratio, if applicable, multiplied by the applicable tax rate for the tax year, less any Iowa tax credits available to be claimed by the specified business in the current year. The applicable tax rate is:
"Income return" includes an Iowa corporation income tax return (IA 1120), an Iowa franchise tax return (IA 1120F), an Iowa S corporation income tax return (IA 1120S), and an Iowa partnership income tax return (IA 1065).
"Specified business" means any of the following:
Example (a) - Failure to Timely File and Failure to Timely Pay
The calculation for the total amount due 3 months after the due date is shown below:
Tax | $100 | |
Penalty | 10 | (5% for failure to timely file, 5% for failure to timely pay) |
Interest | 3 | (3 months interest) |
Total amount due | $113 |
Example (b) - Failure to Timely Pay
The calculation for the total amount due 5 months after the due date is shown below:
Tax | $100 | |
Penalty | 5 | (5% for failure to timely pay) |
Interest | 5 | (5 months interest) |
Total amount due | $110 |
Example (c) - Audit Deficiency on Timely Filed Return
The calculation for the total amount due is shown below:
Computed tax after audit | $200 | |
Less tax paid with return | 100 | |
Additional tax due | $100 | |
Penalty | 5 | (5% for audit deficiency) |
Interest | 8 | (8 months interest) |
Total amount due | $113 |
Example (d) - Audit Deficiency on Late Return Granted an Exception From Failure to File
The computation for the total amount due is shown below:
Tax due after audit | $200 | |
Less tax paid with return | 100 | |
Additional tax due | $100 | |
Penalty | 5 | (5% for audit deficiency. No penalty for failure to file.) |
Interest | 8 | (8 months interest) |
Total amount due | $113 |
Example (e) - Audit Deficiency on Late Filed Return No Pay Return
The computation for the total amount due is shown below:
Tax due reported on original return | $100 | |
Penalty | 10 | (5% for failure to timely file, 5% for failure to timely pay) |
Interest | 4 | (4 months interest) |
Total amount due on original return | $114 |
Additional tax due after | $100 | |
audit | ||
Penalty | 10 | (5% for failure to file, 5% for audit deficiency) |
Interest | 8 | (8 months interest) |
Amount due after audit | $118 | |
Total amount due for tax period | $232 |
Example (f) - Failure to Timely File by a Specified Business
The calculation for the total amount due is shown below:
Tax | $0 |
Penalty | 200 |
Interest | 0 |
Total amount due | $200 |
Iowa Admin. Code r. 701-10.6