TAX DEBT RELIEF OPTIONS – Iowa Department of Revenue

M&M Financial has been successfully resolving back tax liabilities for small businesses and individuals in Iowa since 2008 and nationwide since 2005.  We deal with the IRS and State taxing authorities, so you do not have to!  

If you or your business owe the Iowa Department of Revenue back-taxes we recommend first reading about your Collection Rights and Payment Options.  

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.

PAYMENT PLANS TO RESOLVE IOWA BACK TAXES

The best way for many individuals and businesses to settle their Iowa Department of Revenue tax debt is through an installment plan or Payment Agreement.  If you set up a payment plan with IA-DOR, it’s imperative to make every payment on time and in full.  

If your business doesn’t secure a Payment Agreement, the Central Collections Unit may – 

• Issue liens and levies to bank accounts, 
• Suspend or revoke your professional, occupational, recreational business or industry license, and
• Individuals may see their hunting and fishing license revoked

Here are the basic parameters of IA-DOR Payment Agreements:

• 36 months is typically the max term allowed.
• Accruing additional tax liabilities will default your Payment Agreement and the IA-DOR will demand the balance to be paid in full immediately. Very few 2^nd chances are given.
• You may still challenge or appeal a tax liability even if you are in a Payment Agreement.
• Once the IA-DOR formally approves a Payment Agreement and payments are made timely and in full, the collection process stops, and no further legal action will continue.

REDUCE YOUR IA-DOR TAX DEBT

Offer in Compromise

The Iowa Department of Revenue does have an Offer in Compromise (OIC) program to resolve outstanding tax liabilities for those that qualify.  The OIC is typically not a good program for operating businesses, but may be a better fit for individual taxes.  

To be eligible for the OIC, you must be in full compliance with your current tax obligations.  That means file all required tax returns and make all current payment on time.

To be a good OIC candidate to settle your IA-DOR tax debt through the Offer in Compromise, it helps to have little or no equity in assets and little or no ability to pay monthly.  

Check out the Iowa Department of Revenue Offer In Compromise General Information.

Penalty Relief

In certain cases the Iowa Department of Revenue will abate penalties.  The Department has 13 reasons listed on Iowa Department of Revenue Penalty Waiver Form that may be considered for penalty relief.  You should submit your Penalty Waiver Request form with a detailed, written explanation of your hardship, including dates and how the events contributed to your tax debt accrual.  We recommend providing as much supporting information and documents as you can.

Quick Tip:  IA-DOR does NOT typically consider financial hardship an allowed reason for penalty relief!

IOWA TAX RESOLUTION CASE EXAMPLES

The Iowa Department of Revenue has some flexibility when it comes to back tax liabilities.  Each case varies based on factors such as your compliance history, type of tax owed and total amount past due.  Here are some case examples in your state negotiated by M&M.


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