Iowa Sales Tax Guide
Chapter 7: How to manage late Iowa sales tax return filing
Hopefully you don't need to worry about this chapter because you're getting your Iowa sales tax filing and remittance done on time and submitted without incident. However, in the real world, mistakes happen. In this chapter, we'll talk about how to avoid costly penalties and fines if you've missed your assigned filing deadline.What do I do if I missed my Iowa sales tax filing deadline?
The first thing to do is get your return filed. This is definitely one of those situations where things are "better late than never." As long as you don't submit your tax filing paperwork, or hold on to the tax dollars you've collected, you may be accruing fines and interest. It's always best to get your filing done and deal with any penalties and interest payments later.What penalties and interest payments are imposed by the Iowa Department of Revenue?
Businesses that do not file their Iowa sales tax return by the assigned due date and at least 90% of the tax due is left unpaid will be required to pay an additional 10% of the unpaid tax. If the business’s return is filed on time but less than 90% of the tax due is paid, they will be required to pay an additional 5% of the unpaid tax.
The Iowa Department of Revenue points out that a filer will never be subject to both penalties.If I acquire a business, am I responsible for any outstanding sales tax debts, penalties, and interest?
Yes! If you are acquiring a business, it is strongly recommended that you contact the Iowa Department of Revenue and inquire about the current state of the potential acquisition. Once you've purchased the business, you will be held responsible for any and all outstanding Iowa sales and use tax liability.