422.25C Partnership and pass-through entity audits and examinations — consistent treatment of entity-level items — binding actions — amended returns.
1. As used in this section, all words and phrases defined in section 422.25A shall have the same meaning given them by that section.
2. For tax years beginning on or after January 1, 2020, any adjustments to a partnership’s or pass-through entity’s items of income, gain, loss, expense, or credit, or an adjustment to such items allocated to a partner that holds an interest in a partnership or pass-through entity for the reviewed year by the department as a result of a state partnership audit, shall be determined at the partnership level or pass-through entity level in the same manner as provided by section 6221(a) of the Internal Revenue Code and the regulations thereunder unless a different treatment is specifically provided in this title. The provisions of sections 6222, 6223, and 6227 of the Internal Revenue Code and the regulations thereunder shall also apply to a partnership or pass-through entity and its direct or indirect partners in the same manner as provided in such sections unless a different treatment is specifically provided in this title. For purposes of applying such sections, due account shall be made for differences in federal and Iowa terminology. The adjustment provided by section 6221(a) of the Internal Revenue Code shall be determined as provided in such section but shall be based on Iowa taxable income or other tax attributes of the partnership as determined pursuant to this chapter for the reviewed year. The department shall issue a notice of adjustment to the partnership or pass-through entity. Such notice shall be treated as an assessment for the purposes of section 422.25, and the notice shall be appealable by the partnership or pass-through entity pursuant to sections 422.28 and 422.29 and shall be issued within the time period provided by section 422.25. Once the adjustments to partnership-related or pass-through entity-related items or reallocations of income, gains, losses, expenses, credits, and other attributes among such partners for the reviewed year are finally determined, the partnership or pass-through entity and any direct partners or indirect partners shall then be subject to the provisions of section 422.25, subsection 1, paragraph “e”, and section 422.25A in the same manner as if the state partnership audit were a federal partnership level audit, and as if the final state partnership audit adjustment were a final federal partnership adjustment. The penalty exceptions in section 421.27, subsection 2, paragraphs “b” and “c”, shall not apply to a state partnership audit.
3. The state partnership representative for the reviewed year as determined under section 422.25B shall have the sole authority to act on behalf of the partnership or pass-through entity with respect to an action required or permitted to be taken by a partnership or pass-through entity under this section, including proceedings under section 422.28 or 422.29, and the partnership’s or pass-through entity’s direct partners and indirect partners shall be bound by those actions.
4. If the department, the partnership or pass-through entity, and owners representing a majority of the ownership interests in the partnership or pass-through entity agree, the provisions of this section may be applied to tax years beginning before January 1, 2020.
5. The department may adopt rules pursuant to chapter 17A to implement this section.
2020 Acts, ch 1118, §66, 71; 2021 Acts, ch 86, §29, 31, 32
Referred to in §257.22, 422.25A, 422.39, 422D.3
Section applies to federal adjustments and federal partnership adjustments that have a final determination date after July 1, 2020; 2020 Acts, ch 1118, §71
2021 amendment to subsection 4 applies retroactively to July 1, 2020, and applies to federal adjustments and federal partnership adjustments that have a final determination date after July 1, 2020; 2021 Acts, ch 86, §32
Subsection 4 amended
Structure Iowa Code
Chapter 422 - INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES
Section 422.1 - Classification of chapter.
Section 422.2 - Purpose or object.
Section 422.3 - Definitions controlling chapter.
Section 422.4 - Definitions controlling subchapter.
Section 422.5 - Tax imposed — exclusions — alternative minimum tax.
Section 422.6 - Income from estates or trusts.
Section 422.7 - “Net income” — how computed.
Section 422.8 - Allocation of income earned in Iowa and other states.
Section 422.9 - Deductions from net income.
Section 422.10 - Research activities credit.
Section 422.10A - Geothermal tax credit.
Section 422.10B - Renewable chemical production tax credit.
Section 422.11 - Franchise tax credit.
Section 422.11A - New jobs tax credit.
Section 422.11B - Minimum tax credit.
Section 422.11C - Workforce housing investment tax credit.
Section 422.11D - Historic preservation tax credit.
Section 422.11E - Beginning farmer tax credit program.
Section 422.11F - Investment tax credits.
Section 422.11G - Venture capital fund investment tax credit.
Section 422.11H - Endow Iowa tax credit.
Section 422.11I - Geothermal heat pump tax credit.
Section 422.11J - Tax credits for wind energy production and renewable energy.
Section 422.11K - Economic development region revolving fund contribution tax credit.
Section 422.11L - Solar energy system tax credits.
Section 422.11M - Agricultural assets transfer tax credit.
Section 422.11N - Ethanol promotion tax credit.
Section 422.11O - E-85 gasoline promotion tax credit.
Section 422.11P - Biodiesel blended fuel tax credit.
Section 422.11Q - Iowa fund of funds tax credit.
Section 422.11R - From farm to food donation tax credit.
Section 422.11S - School tuition organization tax credit.
Section 422.11T - Hoover presidential library tax credit.
Section 422.11U - Third-party developer tax credit.
Section 422.11V - Redevelopment tax credit.
Section 422.11W - Charitable conservation contribution tax credit.
Section 422.11X - Disaster recovery housing project tax credit.
Section 422.11Y - E-15 plus gasoline promotion tax credit.
Section 422.11Z - Innovation fund investment tax credits.
Section 422.12 - Deductions from computed tax.
Section 422.12A - Adoption tax credit.
Section 422.12B - Earned income tax credit.
Section 422.12C - Child and dependent care or early childhood development tax credits.
Section 422.12D - Income tax checkoff for the Iowa state fair foundation fund.
Section 422.12E - Income tax return checkoffs limited — notification of repeal.
Section 422.12F - Income tax checkoff for child abuse prevention program fund.
Section 422.12H - Income tax checkoff for fish and game protection fund.
Section 422.12I - Income tax checkoff for the Iowa state fair foundation fund.
Section 422.12J - Income tax checkoff for Iowa election campaign fund.
Section 422.12K - Income tax checkoff for child abuse prevention program fund.
Section 422.12M - Income tax form — indication of dependent child health care coverage.
Section 422.12N - Geothermal heat pump tax credit.
Section 422.13 - Return by individual.
Section 422.14 - Return by fiduciary.
Section 422.15 - Information at source.
Section 422.16A - Job training withholding — certification and transfer.
Section 422.16B - Pass-through entity composite returns.
Section 422.17 - Certificate issued by department to make payments without withholding.
Section 422.19 - Scope of nonresidents tax.
Section 422.20 - Information confidential — redactions — penalty.
Section 422.21 - Form and time of return.
Section 422.22 - Supplementary returns.
Section 422.23 - Return by administrator.
Section 422.24 - Payment — interest.
Section 422.24A - Start-up business tax deferment.
Section 422.25 - Computation of tax, interest, and penalties — limitation.
Section 422.25A - Reporting and treatment of certain partnership adjustments.
Section 422.25B - State partnership representative.
Section 422.26 - Lien of tax — collection — action authorized.
Section 422.27 - Final report of fiduciary — conditions.
Section 422.28 - Revision of tax.
Section 422.29 - Judicial review.
Section 422.30 - Jeopardy assessments — posting of bond.
Section 422.31 - Statute applicable to personal tax.
Section 422.33 - Corporate tax imposed — credit.
Section 422.34 - Exempted corporations and organizations.
Section 422.34A - Exempt activities of foreign corporations.
Section 422.35 - Net income of corporation — how computed.
Section 422.37 - Consolidated returns.
Section 422.38 - Statutes governing corporations.
Section 422.39 - Statutes applicable to corporations and corporation tax.
Section 422.40 - Cancellation of authority — penalty — offenses.
Section 422.41 - Corporations.
Section 422.60 - Imposition of tax — credit.
Section 422.62 - Due and delinquent dates.
Section 422.63 - Amount of tax.
Section 422.65 - Allocation of revenue.
Section 422.66 - Department to enforce.
Section 422.67 - Generally — bond — approval.
Section 422.68 - Powers and duties.
Section 422.69 - Moneys paid and deposited.
Section 422.70 - General powers — hearings.
Section 422.71 - Assistants — salaries — expenses — bonds.
Section 422.73 - Correction of errors — refunds, credits, and carrybacks.
Section 422.74 - Certification of refund.
Section 422.75 - Statistics — publication.
Section 422.85 - Imposition of estimated tax.
Section 422.86 - Payment of estimated tax.
Section 422.88 - Failure to pay estimated tax.
Section 422.89 - Exception to penalty.
Section 422.90 - Penalty not subject to waiver.
Section 422.91 - Credit for estimated tax.
Section 422.92 - Rules for short taxable year.
Section 422.93 - Public utility accounting method.
Section 422.100 - Allocation to the child care credit fund.
Section 422.110 - Income tax credit in lieu of refund.
Section 422.111 - Fuel tax credit as income tax credit.