Iowa Admin. Code r. 701-700.7

Current through Register Vol. 47, No. 5, September 4, 2024

Rule 701-700.7 - Interest or refunds on net operating loss carrybacks

(1)Interest on unpaid tax. Tax not paid within the time prescribed by law, including the period during an extension of time, draws interest at the rate described in rule 701-10.2 (421). Payments made are first credited to penalty and interest due and then to the tax liability. See Ashland Oil Co. v. Iowa Department of Revenue and Finance, 452 N.W.2d 162 (Iowa 1990).

(2)Interest on refunds and tax paid prior to due date. For the purpose of determining the time interest begins to accrue, all income tax withheld, estimated tax paid and other tax paid prior to the due date shall be deemed to be paid on the last day the return is required to be filed disregarding any extensions of time to file the return and pay the tax.

(3)Interest on a net operating loss carryback-the second calendar month period-on or after April 30, 1981. For net operating losses occurring in any of the taxable years ending on or after April 30, 1981, interest accrues on excess tax paid in a prior year, if the loss is carried back to such year, only after the close of the taxable year in which the loss occurs or on the first day of the second calendar month following the date the tax to be refunded was paid, whichever time is later.

This rule is intended to implement Iowa Code section 422.25.

Iowa Admin. Code r. 701-700.7

ARC 7761B, IAB 5/6/09, effective 6/10/09; Editorial change: IAC Supplement 11/2/22