If they have a confessional at the Iowa Department of Revenue, this would be a good time to remodel it. Nobody will be using it for the next 13 weeks or so.
Governor Culver has signed the tax amnesty bill, SF 580. The bill forgives penalties and 1/2 of the interest during the amnesty period, which runs from September 4 thorugh October 31 of this year.
The Governor's website touts this as a "one-time" amnesty. Yes, one time, just like the last one in 1986.
The Tax Policy Blog has a post on the policy implications of tax amnesties:
What we wrote in 1985 holds true today: if lawmakers decide to implement tax amnesty programs, they should be accompanied by fundamental tax reform that makes the tax code simpler and easier to comply with.
Iowa has gone in the opposite direction, adding more
loopholes targeted tax incentives to its tax law while doing nothing to lower rates or broaden the tax base. Iowa's incentive is purely a cheap temporary revenue fix that does nothing but build an expectation of future amnesties while making chumps of law-abiding taxpayers. But for those of us who charge for tax work by the hour, it truly helps our economic development during an otherwise slow time of year.
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not necessarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to