(1)
Use
and completeness of prescribed forms. Returns shall be made by
corporations on forms supplied by the department. Taxpayers not supplied with
the proper forms shall make application for same to the department in ample
time to have their returns made, verified and filed on or before the due date.
Each taxpayer shall carefully prepare the taxpayer's return so as to fully and
clearly set forth the data required. For lack of a prescribed form, a statement
made by a taxpayer disclosing the taxpayer's gross income and the deductions
therefrom may be accepted as a tentative return, and if verified and filed
within the prescribed time, will relieve the taxpayer from liability to
penalties, provided that without unnecessary delay such a tentative return is
replaced by a return made on the proper form. Each question shall be answered
and each direction complied with in the same manner as if the forms and
instructions were embodied in these rules.
Failure to receive the proper forms does not relieve the
taxpayer from the obligation of making any return required by the
statute.
Returns received which are not completed, but merely state
"see schedule attached" are not considered to be a properly filed return and
may be returned to the taxpayer for proper completion. This may result in the
imposition of penalties and interest due to the return being filed after the
due date.
(2)
Form
for filing-domestic corporations. A domestic corporation, as defined
by Iowa Code section
422.32(5), is
required to file a complete Iowa return for each year of its existence
regardless of whether the corporation has income, loss, or inactivity. For tax
periods beginning on or after January 1, 1999, domestic corporations are
required to file a complete Iowa return only if they are doing business in
Iowa, or deriving income from sources within Iowa. For tax periods beginning on
or after July 1, 2012, domestic corporations must also include a true and
accurate copy of their federal corporation income tax return as filed with the
Internal Revenue Service with the filing of their Iowa return. At a minimum
this return includes the following federal schedules: income statement, balance
sheet, reconciliation of income per books with income per return, analysis of
unappropriated retained earnings per books, dividend income and special
deductions, cost of goods sold, capital gains, tax computation and tax
deposits, alternative minimum tax computation, and statements detailing other
income and other deductions.
When a domestic corporation is included in the filing of a
consolidated federal income tax return, the Iowa corporation income tax return
shall include a schedule of the consolidating income statements as properly
computed for federal income tax purposes showing the income and expenses of
each member of the consolidated group, and a schedule of capital gains on a
separate basis.
If a domestic corporation claims a foreign tax credit,
research activities credit, alcohol fuel credit, employer social security
credit, or work opportunity credit on its federal income tax return, a detailed
computation of the credits claimed shall be included with the Iowa return upon
filing. In those instances where the domestic corporation is involved in the
filing of a consolidated federal income tax return, the credit computations
shall be reported on a separate entity basis.
Similarly, where a domestic corporation is charged with a
holding company tax or an alternative minimum tax, the details of the taxes
levied shall be put forth in a schedule to be included with the Iowa return.
Furthermore, these taxes shall be identified on a separate company basis where
the domestic corporation files as a member of a consolidated group for federal
purposes.
(3)
Form
for filing-foreign corporations. Foreign corporations, as defined by
Iowa Code section
422.32(6), must
include a true and accurate copy of their federal corporation income tax return
as filed with the Internal Revenue Service with the filing of their Iowa
return. At a minimum this return includes the following federal schedules:
income statement, balance sheet, reconciliation of income per books with income
per return, analysis of unappropriated retained earnings per books, dividend
income and special deductions, cost of goods sold, capital gains, tax
computation and tax deposits, research activities credit computation, work
opportunity credit computation, foreign tax credit computation, alcohol fuel
credit computation, employer social security credit computation, alternative
minimum tax computation, and statements detailing other income and other
deductions.
When a foreign corporation whose income is included in a
consolidated federal income tax return files an Iowa return, federal
consolidating income statements as properly computed for federal income tax
purposes showing the income and expenses of each member of the consolidated
group shall be required together with the following additional schedules on a
separate basis:
a. Capital
gains.
b. Dividend income and
special deductions.
c. Research
activities credit, alcohol fuel credit and employer social security credit
computations.
d. Work opportunity
credit computation.
e. Foreign tax
credit computation.
f. Holding
company tax computation.
g.
Alternative minimum tax computation.
h. Schedules detailing other income and other
deductions.
(4)
Amended returns. If it becomes known to the taxpayer that the
amount of income reported to be federal net income or Iowa taxable income was
erroneously stated on the Iowa return, or changed by Internal Revenue Service
audit, or otherwise, the taxpayer shall file an amended Iowa return along with
supporting schedules, to include the amended federal return and a copy of the
federal revenue agent's report if applicable. A copy of the federal revenue
agent's report and notification of final federal adjustments provided by the
taxpayer will be acceptable in lieu of an amended return. The assessment or
refund of tax shall be dependent on the statute of limitations as set forth in
701-subrule 500.2(1) and rule
701-504.3 (422).
This rule is intended to implement Iowa Code section
422.21 and section
422.36 as amended by 2012 Iowa
Acts, Senate File 2328.
