Tips from the Iowa Department of Revenue – Avoid these common errors when filing sales, use, and withholding returns

During review of returns filed with the Department, several problems tend to come up on a regular basis. By avoiding these pitfalls, processing of returns will be smoother and less likely to trigger an inquiry to the taxpayer.

Register:

• Make sure the taxpayer is registered and has an Iowa permit before filing returns
• Apply online: https://www.idr.iowa.gov/CBA/start.asp
• When returns are filed prior to registering, it is difficult to give the taxpayer proper credit

Monthly Filers:

• File deposits for the first two months of each quarter
• File one quarterly return with the information for the entire quarter
• Show deposits made for the first two months on the quarterly return
• Pay only the remaining amount due with the quarterly return
• DO NOT file a quarterly return for each month

Amended Returns:

• An amended return replaces the original return filed
• Amended returns must show all information as it should have been filed initially
• DO NOT file an amended return only reporting the items that have changed
• Remember if you file a second amended return, it will replace both the original and first amended

Local Option Sales Tax (LOST):

• The LOST schedule on the quarterly return must show amounts for the entire quarter, not just the third month of the quarter

Hotel/Motel Tax:

• Amounts for hotel/motel tax must be reported on Schedule A when eFiling sales tax returns
• Only sleeping room rentals should be reported on Schedule A

The Department encourages taxpayers and tax preparers to stay updated by using these resources:

• Online Training and Webinars: http://www.iowa.gov/tax/educate/TrainOnline.html
• Sign up for e-mail updates through IDR eLists
• Follow IDR on Twitter
• Like us on Facebook: www.facebook.com/iowadepartmentofrevenue
• E-mail Taxpayer Services at idr@iowa.gov
• Call Taxpayer Services at 515-281-3114 or 1-800-367-3388