The bill introduces several modifications to tax deadlines and tax dispute procedures in Iowa. It allows taxpayers to authorize individuals to act on their behalf by filing a power of attorney with the Department of Revenue, which must integrate the requirements of this form into a return when feasible. Additionally, if a power of attorney form is filed before a due date, the time period leading up to that due date will be tolled until the power of attorney is either authorized or denied. The bill also mandates that the Department provide taxpayers with an explanation of proposed assessments or refund claim denials at least thirty days prior to issuing a notice, and allows taxpayers to request a meeting with department personnel to discuss these explanations.

Furthermore, the bill modifies the costs recoverable by taxpayers in disputes regarding tax assessments or refunds. It removes the previous $25,000 cap on litigation costs and allows for the recovery of reasonable court costs, expert witness fees, and attorney fees, with a standard hourly rate of $250 that can be adjusted annually based on the cost-of-living. The burden of proof shifts to the Department if the taxpayer substantially prevails in the dispute, requiring the Department to demonstrate that its position was substantially justified to deny the taxpayer an award. These changes aim to enhance taxpayer rights and streamline the tax dispute process.

Statutes affected:
Introduced: 421.59, 421.60