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.)
Impact
A significant amendment in HF773 is the removal of the $25,000 cap on recoverable costs that currently limits taxpayer compensation in such disputes. This change is aimed at ensuring that taxpayers can receive adequate reimbursement for their legal expenses and related costs, thereby encouraging them to challenge tax assessments and disputes with the department without the fear of incurring substantial out-of-pocket costs. The bill fundamentally alters the financial landscape for taxpayers by potentially increasing the state’s costs in legal disputes.
Summary
House File 773 addresses the costs associated with litigation in administrative hearings or court proceedings that involve the Iowa Department of Revenue's collection of taxes, penalties, and interest. The bill introduces substantial changes to how legal costs are awarded to taxpayers who prevail against the department. Notably, it allows for the recovery of reasonable court costs, fees for expert witnesses, and attorney or accountant fees, thereby enhancing the financial protections for taxpayers engaged in disputes with the state.
Contention
Key points of contention surrounding HF773 include the shifting of the burden of proof. Under the proposed legislation, if a taxpayer substantially prevails in a dispute, the burden of proof shifts to the Department of Revenue to demonstrate that its position was substantially justified. Critics argue that this could complicate the department's ability to collect owed taxes and could lead to an increase in frivolous claims. Proponents, however, contend that it ensures fairness and protects taxpayer rights, allowing for a more equitable dispute resolution process.
Similar To
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 SSB 1005.)
Related
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.(See SF 524.)
Related
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.(See HF 773.)
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 SSB 1005.)
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.(See HF 773.)
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.(See SF 524.)
A bill for an act relating to collection of accrued interest on unpaid child support by the department of health and human services.(Formerly HSB 620.)
A bill for an act relating to interpretation of law in administrative and judicial proceedings under the Iowa administrative procedure Act. (Formerly HF 36.)
A bill for an act relating to the administration of the tax by the department of revenue by modifying provisions related to personal income, property, sales and use, motor fuel, and inheritance taxes, changing tax expenditure reviews, and including effective date and retroactive applicability provisions.(Formerly SSB 1156.)
Modifies provisions relating to investments of public employee retirement and pension systems, requiring divestment of fund holdings in certain Chinese entities or products
Substitute for SB 66 by Committee on Local Government, Transparency and Ethics - Requiring annual filing of the statement of substantial interests by elected or appointed city or county officials, providing that officials of governmental subdivisions other than cities or counties file statements of substantial interests if any change in substantial interests occurred and requiring governmental officials with a substantial interest in a real estate development project to verbally disclose such interest prior to participating in any discussion, review or action on a proposed zoning change or permit.