Iowa HF773 modifies the costs recoverable by taxpayers in disputes over tax, penalties, and interest with the Department of Revenue.

Iowa HF773 changes the rules for awarding costs in administrative hearings or court proceedings involving tax, penalties, and interest disputes with the Department of Revenue. The bill removes the current $25,000 cap on recoverable costs and allows for the recovery of reasonable court costs, expert witness fees, study costs, and attorney or accountant fees. If a taxpayer substantially prevails, the burden of proof shifts to the Department of Revenue to show that its position was substantially justified. If the Department of Revenue meets this burden, the taxpayer cannot recover costs.

Iowa HF773 modifies the costs recoverable by taxpayers in disputes over tax, penalties, and interest with the Department of Revenue.

Iowa HF773 changes the rules for awarding costs in administrative hearings or court proceedings involving tax, penalties, and interest disputes with the Department of Revenue. The bill removes the current $25,000 cap on recoverable costs and allows for the recovery of reasonable court costs, expert witness fees, study costs, and attorney or accountant fees. If a taxpayer substantially prevails, the burden of proof shifts to the Department of Revenue to show that its position was substantially justified. If the Department of Revenue meets this burden, the taxpayer cannot recover costs.