Iowa Admin. Code r. 701-201.12 - Obtaining a new permit after revocation

(1) If a taxpayer's permit is revoked, the taxpayer may apply for a new permit. The new permit application will be granted or denied based on terms and conditions set forth by the department. Terms and conditions include payment of any tax liability that may be due to the department.

(2) Upon revocation of a sales and use tax permit, the taxpayer will be required to pay all delinquent tax liabilities, to file returns, and to refrain from taxable occurrences under Iowa Code section 423.2 prior to the issuance of a new sales tax permit, and the director may require the taxpayer to post a bond.

(3) The director may impose a waiting period during which the person must refrain from taxable occurrences pursuant to the penalties of Iowa Code section 423.40, not to exceed 90 days, to issue a new permit after a revocation. The department may require a sworn affidavit, under penalty of perjury, stating that the person has fulfilled all requirements of said order of revocation and stating the dates on which the person refrained from taxable occurrences.

(4) Each of the following situations will be considered one offense, for the purpose of determining the waiting period to reinstate a revoked permit or issue a new permit after a revocation, unless otherwise noted:

a. Failure to post a bond as required.

b. Failure to file a return timely.

c. Failure to pay tax timely (including dishonored checks, failure to pay, and late payments).

d. Failure to file a return and pay tax shown on the return timely (counts as two offenses).

(5) The administrative law judge or director of revenue may order a waiting period after the revocation not to exceed:

a. Five days for one through five offenses.

b. Seven days for six through seven offenses.

c. Ten days for eight through nine offenses.

d. Thirty days for ten offenses or more.

(6) The administrative law judge or director of revenue may order a waiting period not to exceed:

a. Forty-five days if the second revocation occurs within 24 months of the first revocation.

b. Sixty days if the second revocation occurs within 18 months of the first revocation.

c. Ninety days if the second revocation occurs within 12 months of the first revocation.

d. Ninety days if the third revocation occurs within 36 months of the second revocation.

(7) A new permit will not be issued following revocation if the department has received a certificate of noncompliance from the child support recovery unit in regard to the permit holder until the unit furnishes the department with a withdrawal of the certificate of noncompliance. The department will not deny a permit to any applicant that is an entity if the department has received a certificate of noncompliance from the child support recovery unit in regard to an individual who is an owner or officer of the entity.

This rule is intended to implement Iowa Code sections 423.2, 423.36, and 423.40.

Notes

Iowa Admin. Code r. 701-201.12

ARC 8150C, IAB 7/24/24, effective 8/28/24