(1) A
composite return of income must be filed on or before the due date. The due
date is the last day of the fourth month following the close of the tax year of
the partners, shareholders, employees, beneficiaries, estates or trusts
included in the composite return, or the last day of the period covered by an
extension of time granted by the department. When the due date falls on a
Saturday, Sunday, or holiday, the composite return is due the following day
that is not a Saturday, Sunday, or holiday. Iowa Code section
421.9A contains additional
information on due dates that fall on a Saturday, Sunday, or holiday. If a
return is placed in the mail, properly addressed, postage paid, and postmarked
on or before the due date for filing, no penalty will attach should the return
not be received until after that date. Mailed returns should be addressed to
Composite Return Processing, Department of Revenue, P.O. Box 10469, Des Moines,
Iowa 50306.
(2) Extension of time
for filing composite returns. If at least 90 percent of the tax required to be
shown due has been paid by the due date and no return was filed by the due
date, the director will consider that the
taxpayer has requested an extension
of time to file the return and will automatically grant an extension of up to
six months to file the return. The
taxpayer does not have to file an
application for extension form with the department to get the automatic
extension to file the return within the six-month period after the due date and
not be subject to penalty. However, if the
taxpayer wants to make a tax payment
to ensure that at least 90 percent of the tax has been paid on or before the
due date, the payment should be made with the Iowa Tax Voucher form. This form
can be requested from the
Taxpayer Services Section, P.O. Box 10457, Des
Moines, Iowa 50306, or by telephone at (515)281-3114.
To determine whether or not at least 90 percent of the tax
was "paid" on or before the due date, the aggregate amount of tax credits
applicable on the return, plus the tax payments made on or before the due date,
are divided by the tax required to be shown due on the return. The tax required
to be shown on the return is the sum of the income tax and minimum tax. The tax
credits applicable are the credits set out in Iowa Code chapter 422, division
II, and section 422.111.
If the aggregate of the tax credits and the tax payments are
equal to or greater than 90 percent of the tax required to be shown due, the
taxpayer will have met the "90 percent" test and no penalty will be assessed.
However, the taxpayer will still be subject to statutory interest on any tax
due when the return is filed.
Any tax elections, such as the election to carry forward a
net operating loss occurring in the tax year, will be considered to be valid in
instances when the return is filed within the six-month extended period after
the due date. The fact that the taxpayer has paid less than 90 percent of the
tax required to be shown due will not invalidate any tax elections made on the
return, if the return is filed within the six-month extended period.
This rule is intended to implement Iowa Code section
422.13.
