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IA HF773
Bill
Status
3/5/2025
Primary Sponsor
Judiciary
Click for details
AI Summary
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Prevailing taxpayers in tax disputes with the Iowa Department of Revenue must be awarded reasonable costs incurred after the notice of assessment or denial of refund is issued
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Recoverable costs include court costs, expert witness fees, studies/engineering reports/tests/analyses, and attorney or accountant fees (including fees for obtaining the cost award itself)
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Removes the existing $25,000 cap on costs that taxpayers can recover in tax disputes
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Shifts the burden of proof to the Department of Revenue to prove its position was substantially justified once a taxpayer establishes they substantially prevailed on the amount in controversy or the most significant issues
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If the department proves its position was substantially justified, the taxpayer is not considered a "prevailing taxpayer" and cannot recover costs
Legislative Description
A bill for an act relating to awarding the costs in administrative hearings or court proceedings involving the collection of tax, penalties, and interest by the department of revenue.(Formerly HSB 14.)
Last Action
Referred to Judiciary. H.J. 896.
4/3/2025