Iowa Admin. Code r. 701-19.3

Current through Register Vol. 47, No. 6, September 18, 2024

Rule 701-19.3 - Settlement procedures and limitations, generally

(1)Whether to seek a settlement. When determining whether to seek a settlement, a taxpayer should first consider whether a settlement is necessary. Nothing in this chapter is intended to preclude a taxpayer who misses the time provided by law to appeal a notice of assessment from paying the amount due, filing a refund claim, and contesting any denial of that refund claim as described in Iowa Code section 421.60(2)"h." If a taxpayer has not received a billing but has information that would adjust the liability down, the appropriate remedy is to file an amended return within the statute of limitations. If a taxpayer has received an estimated assessment and is within three years of when the assessment was issued, the taxpayer should file a return. If a taxpayer has received an assessment and is within the time period to file an appeal, it is proper to file an appeal rather than a settlement request. If a taxpayer does not dispute the liability, but is unable to pay the liability due to financial hardship, the taxpayer should submit an offer in compromise application.

(2)Which type of settlement to seek. Different types of settlements require different forms and procedures. Procedures for abatement, offer in compromise, and voluntary disclosure agreements are described in specific rules below. For matters currently under appeal pursuant to 701-Chapter 7, settlement requests must be submitted to the appeals section of the legal services and appeals division in accordance with 701-subrule 7.11(5). For matters currently under audit, settlement requests must be submitted to the department employee assigned to the audit.

(3)Who may authorize a department settlement. Only the director, the deputy director, or the division administrator of the legal services and appeals division may approve and sign settlements under this chapter unless otherwise specified in rule or designated by the director.

(4)Discretionary nature of settlements. There is no right to appeal an abatement denial, offer in compromise denial, or other settlement decision by the department under 701-Chapter 7. As described in Iowa Code section 421.5, a taxpayer shall not have the right to a settlement of any tax, penalty, or interest liability under this chapter or Iowa Code section 421.5. Any determination shall be discretionary and shall be final and conclusive except in the case of fraud or mutual mistake of material fact or as otherwise stated in a written settlement agreement between the taxpayer and the department.

Iowa Admin. Code r. 701-19.3

Rescinded by IAB February 8, 2023/Volume XLV, Number 16, effective 3/15/2023

Adopted by IAB December 13, 2023/Volume XLVI, Number 12, effective 1/17/2024