Bills › 91st General Assembly

SF 524Died when the session ended · March 5, 2025

Relating to awarding the costs in administrative hearings or court proceedings involving the collection of tax, penalties, and interest by the department of revenue

Sponsored by the Senate Judiciary (companion To Hf 773 By Committee on Judiciary) Committee

Topics:Courts & civil lawTaxes

Same legislation: SSB 1005, HSB 14, HF 773

Write your legislators about it

Also covers SSB 1005 and HSB 14 and HF 773.

Where it is now

  1. Done: IntroducedJanuary 14, 2025
  2. Done: SubcommitteeJanuary 14, 2025
  3. Done: Senate committeeMarch 4, 2025
  4. Stopped: Passes the SenateDied when the General Assembly ended
  5. Next: House committeeFunnel: by March 20, 2026
  6. Next: Passes the House
  7. Next: To the Governor
  8. Next: Signed into law

Died when the session ended The 2026 session adjourned on May 3, 2026, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

AI summary People fighting tax disputes with the Department of Revenue would no longer have a $25,000 limit on the legal costs they can get back if they win. If a taxpayer wins their case, the Department of Revenue must pay for reasonable attorney fees, expert witnesses, and other related expenses. However, the Department can avoid paying these costs if it proves its original position was legally justified.1

Read the official explanation

This bill relates to the costs of litigation in administrative hearings or court proceedings involving the collection of tax, penalties, and interest (dispute) by the department of revenue (department). The bill changes the costs allowed to be recovered in the dispute. The costs allowed to be recovered under the bill include reasonable court costs; reasonable prevailing market rates for expert witnesses, studies, tests, analysis, or special projects; and reasonable attorney or accountant fees including fees related to the recovery of costs allowed under the bill. The bill strikes the current $25,000 cap recoverable by a taxpayer in a dispute. Under the bill, if the taxpayer substantially prevails in the dispute relating to the amount in controversy or issues involved, the burden of proof shifts to the department to prove that the position of the department was substantially justified. If the department proves the position of the department was substantially justified, the bill prohibits the taxpayer from recovering an award in the dispute. If the taxpayer prevails, the bill requires the department to pay the reasonable costs described in the bill. Under current law, the taxpayer must prove the position of the department was not substantially justified in addition to the amount in controversy and issues involved.

Full bill text2

Senate subcommittee

Named January 14, 2025 (as SSB 1005). On January 15, 2025 it recommended amendment and passage. [].

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

1 written public comment to its subcommittee: January 21, 2025 (1) · on the Legislature’s site

Iowa Code it changes

Amends§421.60

How the Code works3

Lobbying

1 for · 0 against · 8 undecided · Who →

Family tree

Earlier and later bills are matched by wording or an identical title.

Tried before

This idea has been filed in an earlier General Assembly. None got through a chamber.

  • HSB 541 HSB 541
    90th General Assembly · In committee · very similar
    Cleared committee

Matched by wording or an identical title.