Iowa Code r. 701-202.5 - Consolidated returns
Two types of permit holders have the option of filing a consolidated return. The first is a permit holder with multiple locations from which taxable sales are made, and the second is certain affiliated corporations.
(1)
Permit
holders with multiple locations. A permit holder procuring more than
one permit may file a separate return for each permit, or if a request to
consolidate pursuant to Iowa Code section
423.31(4) has
been approved by the department, the permit holder may file one consolidated
return reporting sales made at all locations for which a permit is
held.
(2)
Affiliated
corporations. Any group consisting of a parent corporation and its
affiliates, which is entitled to file a consolidated return for federal income
tax purposes and which makes retail sales of tangible personal property,
specified digital products, or taxable services, may make an application to the
director for permission to file a consolidated Iowa sales tax return. The
application shall:
a. Be in
writing.
b. Be signed by an officer
of the parent company.
c. Contain
the business name, address, federal identification number, and Iowa sales and
use tax permit number of every corporation seeking the right to file a
consolidated return.
d. State the
initial tax period for which the right to file a consolidated return is
sought.
e. Be filed no later than
90 days prior to the beginning of the identified initial tax period.
f. Contain any additional relevant
information that the director may, in individual instances, require.
(3)
Requirements common to
returns filed under this rule. The following provisions apply to
permit holders filing consolidated returns pursuant to either subrule 202.5(1)
or 202.5(2):
a.
Proper form.
Taxpayers shall file consolidated returns through GovConnectIowa.
b.
Working papers. All
working papers used in the preparation of the information required to complete
the returns must be available for examination by the department.
c.
Offsetting collections among
affiliates. Undercollections of sales tax at one or more locations or
by one or more affiliates shall not be offset by overcollections at other
locations or by other affiliates.
This rule is intended to implement Iowa Code section 423.31.
Notes
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