Iowa Admin. Code r. 701-19.4

Current through Register Vol. 47, No. 6, September 18, 2024

Rule 701-19.4 - Applications for abatement

(1)When to file. Abatement is intended to be a possible remedy for taxpayers who have received a billing or refund denial letter and have information that could lead to a reduction in the liability, but failed to file a timely appeal. Grounds for abatement include doubt as to liability and promoting effective tax administration.

(2)How to file an application. To apply, a taxpayer must submit an application for abatement in the department's prescribed paper or electronic format. The application can be submitted through GovConnectIowa or by using the form available on the department's website and following the submission instructions on the form.

(3)Required information. A request for abatement must be submitted on the department's form. The form must be fully completed and properly signed.

(4)Review of requests.

a. After the application has been submitted, it will be reviewed by department staff.

b. Additional information may be requested to assist the department in its review.

c. A letter will be issued to the applicant notifying the applicant of the decision to grant, deny or partially grant the abatement request. The department's decision on an abatement application will only be contained in a formal determination letter.

d. Applicants whose applications are granted in part will receive an agreement describing the terms of the partially granted abatement request and must sign and return that agreement to the department in order to receive the partially granted abatement.

e. Decisions to accept an abatement request in full or in part for doubt as to liability may be approved by the bureau chief of the compliance section of the tax management division or another staff member designated by the director.

f. Decisions to accept an abatement request to promote effective tax administration may only be approved by the director, the deputy director, or the division administrator of the legal services and appeals division.

(5)Limitations. The department will accept applications for abatement during the appeal period but will not review such applications until the appeal period has passed. The department will generally not refund amounts already paid in response to an application for abatement. Some exceptions may include the following circumstances:

a. The application is received within three years after the return related to the application for abatement was due or within one year after the payment related to the application for abatement was made, whichever is later.

b. The application is received within one year of the final determination date of any final federal adjustment arising from an internal revenue service audit or other similar action by the internal revenue service with respect to the particular tax year at issue in the application.

c. Payments were received in violation of Title 11 of the United States Code.

d. Exceptional circumstances demonstrate that a refund would promote effective tax administration as described in subrule 19.2(4).

Iowa Admin. Code r. 701-19.4

Rescinded by IAB February 8, 2023/Volume XLV, Number 16, effective 3/15/2023

Adopted by IAB December 13, 2023/Volume XLVI, Number 12, effective 1/17/2024

Editorial change: IAC Supplement 4/17/2024