Text: SSB3171            Text: SSB3173


Senate Study Bill 3172

SENATE FILE BY (PROPOSED COMMITTEE ON REBUILD IOWA BILL BY CHAIRPERSON HOGG) A BILL FOR 1 An Act providing for the waiver of tax penalties and interest 2 under certain disaster loss circumstances and including 3 effective date and retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5339SC (4) 83 tw/sc PAG LIN 1 1 Section 1. WAIVER OF PENALTIES AND INTEREST == 1 2 DISASTER=RELATED LOSSES == REFUNDS. 1 3 1. Notwithstanding Code sections 421.8, 421.27, and 422.25, 1 4 if a taxpayer has filed a return for tax year 2008 relying in 1 5 good faith on the expectation that the state of Iowa would 1 6 conform to the federal treatment of disaster=related casualty 1 7 losses under section 165(h) of the Internal Revenue Code, as 1 8 modified by the Heartland Disaster Relief Act of 2008, Pub. L. 1 9 No. 110=343, in computing net income for state tax purposes, 1 10 the director of revenue shall, for any taxpayer amending the 1 11 return in the time permitted by statute, waive any penalty or 1 12 interest due as a result of either a failure to timely pay the 1 13 tax due or the filing of a defective or incorrect return. 1 14 2. If, prior to the effective date of this Act, a taxpayer 1 15 paid penalties or interest as a result of a good=faith reliance 1 16 on the state conforming to section 165(h) of the Internal 1 17 Revenue Code, the department of revenue shall refund such 1 18 penalties and interest to the taxpayer. 1 19 Sec. 2. EFFECTIVE UPON ENACTMENT AND RETROACTIVE 1 20 APPLICABILITY. This Act, being deemed of immediate importance, 1 21 takes effect upon enactment and applies retroactively to 1 22 January 1, 2008, for tax years beginning on or after that date 1 23 and before January 1, 2009. 1 24 EXPLANATION 1 25 This bill relates to the assessment of penalties and 1 26 interest against taxpayers who filed returns expecting the 1 27 state of Iowa to conform with certain federal income tax 1 28 provisions. 1 29 In 2008, the midwest suffered significant property casualty 1 30 losses due to natural disasters. In response, the federal 1 31 government passed the Heartland Disaster Relief Act which 1 32 amended the casualty loss provisions of the Internal Revenue 1 33 Code. In 2009, the state of Iowa did not conform to the federal 1 34 provisions related to the computation of net income. This 1 35 bill allows the director of revenue to waive the assessment 2 1 of penalties and interest against taxpayers who relied in 2 2 good faith on the state conforming to the federal provisions 2 3 and who timely amend their return. The waiver relates only 2 4 to the casualty loss provisions in section 165(h) of the 2 5 Internal Revenue Code. Any penalty and interest paid are to 2 6 be refunded. 2 7 The bill takes effect upon enactment and applies only to tax 2 8 year 2008. LSB 5339SC (4) 83 tw/sc
Text: SSB3171            Text: SSB3173