(1)
In
general. Except as otherwise provided in subrule 404.10(2), this
chapter has no application to any tax year of partners, members, shareholders,
beneficiaries, or employees that begins on or after January 1, 2022. The
department's administrative rules on composite returns for any tax year of a
partnership, limited liability company, S corporation, estate, or trust that
begins on or after January 1, 2022, are located in 701-Chapter 405.
(2)
Special rule for fiscal year
filers in tax year 2021. For the
tax year of a partnership, limited
liability company, S corporation, estate, or trust that begins in calendar year
2021 and ends in calendar year 2022, the entity may elect or be required to
file a Form IA 1040C and pay tax under this chapter for income from that
tax
year that is reportable by nonresident partners, members, shareholders, or
beneficiaries for their
tax year beginning during calendar year 2022.
EXAMPLE: Partnership P is a fiscal year filer with a tax year
that runs from July 1 to June 30. The majority of Partnership P's partners are
individuals who file on a calendar-year basis, thus P is required to file the
Form IA 1040C on a calendar-year basis. Partnership P may elect or be required
to file a Form IA 1040C to report the Iowa-source income earned by the eligible
nonresident partners during Partnership P's 2021 tax year that began on July 1,
2021, and ended on June 30, 2022.
This rule is intended to implement 2021 Iowa Acts, Senate
File 608, division II.
