Iowa Admin. Code r. 701-21.2
Current through Register Vol. 47, No. 13, December 25, 2024
Rule 701-21.2 - Prerequisites for requesting a federal offsetThe following requirements must be met before the state can request an offset of a federal overpayment against an Iowa income tax obligation:
(1) The state must have made written demand on the taxpayer to obtain payment of the state income tax obligation for which the request for offset is being submitted.(2) Pre-offset notice. At least 60 days prior to requesting the offset of a taxpayer's federal overpayment for an Iowa income tax obligation, the state of Iowa must provide notice by certified mail, return receipt requested, to the person owing the Iowa income tax liability. This notice must include information as required by 26 U.S.C. 6402 and 31 CFR 285.8.(3) The state must consider any evidence presented by the person owing the obligation and determine whether the amount or amounts are past due and legally enforceable.(4) Additional pre-offset notices. The department must provide a taxpayer with an additional pre-offset notice if the amount of the obligation to be subject to offset is increased due to a new assessment. However, a new pre-offset notice is not required if there is an increase in the amount to be offset due to accrued interest, penalties or other charges associated with an Iowa income tax obligation in which notice has previously been given.(5) Before offset of the federal refund can be requested by the state of Iowa, the person's Iowa income tax liability must be at least $25, unless otherwise provided based on the discretion of the department and the Secretary. If an individual owes more than one Iowa income tax obligation, the minimum amount will be applied to the aggregate amounts of such obligations owed to Iowa.(6) Only residents of Iowa are subject to offsets under these rules.Iowa Admin. Code r. 701-21.2
ARC 7835C, IAB 4/17/24, effective 5/22/24