§ 422.73 — Correction of errors — refunds, credits, and carrybacks

Iowa § 422.73

• Jurisdiction: Iowa
• Title X: FINANCIAL RESOURCES
• Ch. 422: INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES

Text

1. Forpurposesofthissection, “federaladjustment”, “finaldeterminationdate”, and“final
federal adjustment” all mean the same as defined in section 422.25.
2. a. If it appears that an amount of tax, penalty, or interest has been paid which was not
due under subchapter II, III or V of this chapter, then that amount shall be credited against
any tax due on the books of the department by the person who made the excessive payment,
or that amount shall be refunded to the person or with the person’s approval, credited to
tax to become due. A claim for refund or credit that has not been filed with the department

within three years after the return upon which a refund or credit claimed became due, or
within one year after the payment of the tax upon which a refund or credit is claimed was
made, whichever time is the later, shall not be allowed by the director. If, as a result of a
carryback of a net operating loss or a net capital loss, the amount of tax in a prior period is
reduced and an overpayment results, the claim for refund or credit of the overpayment shall
be filed with the department within the three years after the return for the taxable year of the
net operating loss or net capital loss became due.
b. Notwithstanding the period of limitation specified in paragraph “a”, the taxpayer shall
have one year from 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 to claim an income tax refund or credit arising from that
final federal adjustment.
3. Notwithstanding subsection 2, a claim for refund or credit of the individual income
tax paid which resulted from a reduction in a person’s federal adjusted gross income due to
section 1106 of the FAA Modernization and Reform Act of 2012, Pub. L. No. 112-95, shall be
considered timely if the claim is filed with the department on or before June 30, 2013.
4. The department shall enter into an agreement with the internal revenue service for the
transmission of federal income tax reports on individuals required to file an Iowa income tax
return who have been involved in an income tax matter with the internal revenue service.
After the final determination date of the income tax matter that involves a final federal
adjustment between the taxpayer and the internal revenue service, the department shall
determine whether the individual is due a state income tax refund as a result of that final
federal adjustment from such income tax matter. If the individual is due a state income
tax refund, the department shall notify the individual within thirty days and request the
individual to file a claim for refund or credit with the department.

Legislative History

[C35, §6943-f60; C39, §6943.097; C46, 50, 54, 58, 62, 66, §422.66; C71, 73, 75, 77, 79, 81, §422.73; 81 Acts, ch 138, §1]