Doug Struyk, assistant legislative counsel for the ISBA, reports that every year the Iowa legislature considers legislation to determine which provisions Iowa will couple with the Federal Income Tax Code. Some years this happens sooner than later and preparation of 2016 tax returns will be delayed until the final action is taken. Last session there was significant debate on the extent to which the state should couple with the federal tax code. In particular, there was much discussion on whether or not to couple on Section 179 Expensing.
The Iowa Department of Revenue (IDOR) has reported to the bar association’s legislative counsel that it is receiving questions from tax preparers regarding various scenarios that would result if the Iowa Legislature does not couple with the Internal Revenue Code in the 2017 Session. Most of these questions pertain to Section 179. According to the IDOR, it is up to the legislature to decide what to do once the session begins and, when that time comes, IDOR hopes to have answers.
In response to these requests, IDOR has decided to start compiling and researching all incoming questions. To that end, ISBA members have been asked to submit questions they cannot answer themselves or answers and insights they would like to run by IDOR. Comments and questions can be sent to Greg Stokke at IDOR and it is requested that commenters provide a courtesy copy to Jim Carney, Doug Struyk, and Shannon Henson so they can use the comments as they lobby the coupling bill.