§ 423.37 — Failure to file sales or use tax returns — incorrect returns — limitations period

Iowa § 423.37

• Jurisdiction: Iowa
• Title X: FINANCIAL RESOURCES
• Ch. 423: STREAMLINED SALES AND USE TAX ACT

Text

1. a. As soon as practicable after a return is filed and within three years after the return is
filed, the department may examine the return, assess and determine the tax due if the return
is found to be incorrect, and give notice to the person liable for the tax of the assessment and
determinationasprovidedinparagraph“b”. Ifareturn,whenfiled,isincorrectorinsufficient,
the department shall determine the amount of tax due from information or knowledge the
departmentisabletoobtain. Thedeterminationmaybemadeusinganygenerallyrecognized
valid and reliable sampling technique, whether or not the person being audited has complete
records, and if mutually agreed upon by the department and the person being audited. The
period for the examination and determination of the correct amount of tax is unlimited in the
case of a false or fraudulent return made with the intent to evade tax.
b. The department shall issue a notice of assessment in accordance with section 421.60.
The notice shall be appealable pursuant to sections 422.28 and 422.29. If the person fails to
appeal the notice of assessment, the person may pay the tax, penalty, and interest and file a
refund claim within the time period provided in section 422.73, or may request relief under
section 421.5.
2. a. If a return required by this subchapter is not filed, the period for examination and
determination of the correct amount of tax is unlimited. The department may, at any time,
estimate the tax due from the information or knowledge the department is able to obtain.
b. If the department estimates an amount of tax under this subsection, the following shall
apply:
(1) The department shall issue a notice of assessment to the person for which the tax is
estimatedinaccordancewithsection421.60. Thenoticeofassessmentshallnotbeappealable
pursuant to sections 422.28 and 422.29, except to appeal the determination that the person is
required to file the return.
(2) The department shall include a statement with the notice that if the person files a
return within three years from the date on the notice of assessment, the department may
replacetheassessmentwiththeamountshowndueontheperson’sreturn,plusanyapplicable
penalty and interest, and the department may examine that return and determine the tax,
penalty, and interest within the period provided in this section.
(3) If the person fails to file a return within three years from the date on the notice of
assessment, the person may pay the tax, penalty, and interest and file a refund claim within
the time period provided in section 422.73, or may request relief under section 421.5.
3. The three-year period of limitation provided in subsection 1 may be extended by
a taxpayer by signing a waiver agreement form to be provided by the department. The
agreement shall stipulate the period of extension and the tax period to which the extension
applies. The agreement shall also provide that a claim for refund may be filed by the
taxpayer at any time during the period of extension.
4. The period of limitation on examination and determination is unlimited under this title
in the case of any action by the department to recover or rescind any tax expenditure as
defined by section 2.48, subsection 1, or any other incentive or assistance, due to a failure to
meet or maintain the requirements of a program administered by the economic development
authority.