Tips from the Iowa Department of Revenue
During review of returns filed with the Department, several problems tend to come up on a regular basis. By avoiding these pitfalls, processing of returns will be smoother and less likely to trigger an inquiry to the taxpayer.
Register:
- Make sure the taxpayer is registered and has an Iowa permit before filing returns
- Apply online: https://www.idr.iowa.gov/CBA/start.asp
- When returns are filed prior to registering, it is difficult to give the taxpayer proper credit
Monthly Filers:
- File deposits for the first two months of each quarter
- File one quarterly return with the information for the entire quarter
- Show deposits made for the first two months on the quarterly return
- Pay only the remaining amount due with the quarterly return
- DO NOT file a quarterly return for each month
Amended Returns:
- An amended return replaces the original return filed
- Amended returns must show all information as it should have been filed initially
- DO NOT file an amended return only reporting the items that have changed
- Remember if you file a second amended return, it will replace both the original and first amended
Local Option Sales Tax (LOST):
- The LOST schedule on the quarterly return must show amounts for the entire quarter, not just the third month of the quarter
Hotel/Motel Tax:
- Amounts for hotel/motel tax must be reported on Schedule A when eFiling sales tax returns
- Only sleeping room rentals should be reported on Schedule A
The Department encourages taxpayers and tax preparers to stay updated by using these resources:
- Online Iowa Tax Training and Tax Webinars
- Sign up for e-mail updates through IDR eLists
- Follow the Iowa Department of Revenue on Twitter
- Like the Iowa Department of Revenue on Facebook
- E-mail Taxpayer Services at [email protected]
- Call Taxpayer Services at 515-281-3114 or 1-800-367-3388
Content Contributed by Greg Stokke, Iowa Department of Revenue
