How to File an Appeal
You must file an appeal in writing within 60 days of the date on the Notice of Assessment (or refund denial letter). You must file this appeal within the 60 days, even if you continue to communicate with the auditor or examiner. If you are issued a Notice of Assessment and do not file the appeal within the 60 days, you may pay the balance due (if any) and file a timely refund claim. When a refund is denied, you must file an appeal within 60 days to challenge the refund denial. If your appeal period has expired, you may file an abatement request to seek relief. For more information about this process, please visit the Abatement page.
If you received an estimated return billing because you did not file an Iowa tax return, you may only appeal the determination that you were required to file the Iowa tax return. You may not appeal the amount of the estimated return billing. Your appeal should explain why you were not required to file the return and include supporting documentation. If you disagree with the amount due, you must file the return within three years from the date on the Notice of Assessment. Once the return has been processed, you may receive a new Notice of Assessment which can be appealed.
You must complete the appeal according to Iowa Administrative Code chapter 7. Iowa Administrative Code rule 701—7.9 explains format requirements. You may use the Appeal of Department Action, 76-500 form. Or, you may fill out an appeal form in GovConnectIowa for the following tax types: individual income, inheritance, fiduciary, sales, use, E911, withholding, motor fuel, hotel/motel, local option sales, automobile rental, water service excise, corporate income, S corporation income, franchise, partnership income, composite (PTE-C), tax credits, and distributions associated with these tax types.
Appeals can be submitted:
- Online: GovConnectIowa (for tax types listed above)
- By email: idrhearings@iowa.gov
- By mail: Legal Services and Appeals Division, Iowa Department of Revenue, P.O. Box 14457, Des Moines, Iowa 50306-3457.
- In person: the Department’s customer service desk in the Hoover State Office Building (visitor information)
For more information or questions about the appeal process, contact the Legal Services and Appeals Division at idrhearings@iowa.gov or 515-242-5269.
Appeal Intake Process
Appeals generally go through the following process. The Clerk of the Legal Services and Appeals Division reviews the documents you have submitted as part of the appeal. If the documents are complete and in proper format, the Division will docket them as an appeal. If the documents provided are missing necessary information, you will be contacted by the Legal Services and Appeals Division and given 30 days to provide the missing information. If the missing information is provided, the appeal will be reviewed according to the procedures described below. If the missing information is not provided, the appeal will be dismissed. If the appeal is dismissed, you may request reinstatement through the process described below.
Late Appeals
If you file an appeal that is late or otherwise not allowed by law, the Department will file a motion to dismiss the appeal. Prior to filing the motion, the Department may ask you to provide relevant information. If you want to dispute the Department's motion to dismiss, you have 20 days to file a document explaining why you believe the appeal should not be dismissed. This document is called a resistance. For more information, refer to Iowa Administrative Code rule 701—7.12. If you do not file a resistance, the Department will dismiss your appeal.
Appeal Review Process
If your appeal is properly filed, the Department’s Appeals Section will review the matter to determine if a resolution can be reached without the need for a hearing. This is commonly referred to as “informal procedures.” Procedures at this stage include, but are not limited to, requests for additional information from the taxpayer, informal conferences to discuss the matter in person or over the phone, and settlements. If the matter is still not resolved, we will send you a letter explaining the Department’s position. If you disagree with the position letter, you may request a hearing. Failure to respond to the position letter or other requests on time may be considered failure to pursue the appeal and may result in the Department’s filing a motion to dismiss your appeal. If you want to dispute the Department's motion to dismiss, you have 20 days to file a document explaining why you believe the appeal should not be dismissed. This document is called a resistance. For more information, refer to Iowa Administrative Code rule 701—7.12. If you do not file a resistance, the Department will dismiss your appeal.
Reinstatement
If you filed an appeal on time, but your appeal is dismissed because you failed to provide information or respond to the Department, you may be eligible to request that your appeal be reinstated. The Department may reinstate an appeal that is dismissed for failure to pursue if you prove that you had good cause to miss the relevant deadline. You may use the Application for Reinstatement, 76-504. For more information, or questions about the reinstatement process, contact the Legal Services and Appeals Division at idrhearings@iowa.gov or 515-242-5269. Appeals that are dismissed due to being filed late or that are not otherwise allowed under law cannot be reinstated using the Application for Reinstatement.
You must submit your Application(s) for Reinstatement no later than 30 days from the date we dismissed the appeal.
Expedited Hearing
You and the Department may agree to have your appeal set for expedited proceedings. This procedure is used in cases involving small dollar amounts that have no precedential value. Both you and the Department must agree not to conduct discovery. Both you and the Department must agree not to appeal the Administrative Law Judge’s decision under the expedited hearing format.
Requests to Waive Informal Procedures
You do not have to go through the informal procedures described above or wait for a position letter to request a hearing. If a proper appeal has been pending before the Department for at least six months, you can make a written request to the Legal Services and Appeals Division to begin a contested case proceeding. If you do so, the Department must file an Answer within 30 days of receipt of your request. After the Department files its Answer to your appeal, an Administrative Law Judge will issue a Notice of Hearing that sets the date, time, and location for the hearing.
If the Department fails to answer within the 30-day period, interest on an assessment is suspended from the time an Answer is required to be filed until the Department files an Answer. If the appeal involves a refund denial and the Department fails to answer within the 30-day period, interest on the refund is twice the normal rate until the Answer is filed
The Hearing
At the hearing, an Administrative Law Judge hears testimony and accepts exhibits from both you and the Department. This hearing is similar to a court of law but is more informal. It is important that all relevant information be presented because the record made at the hearing will be reviewed by the courts if your case is appealed to a higher level. You may represent yourself at the hearing or you may be represented by a person that meets the requirements of Iowa Administrative Code rule 701—7.6.
Telephone Hearing
Both you and the Department may agree to present the contested case through a telephone hearing. The telephone hearing is usually not appropriate for complex cases or those involving numerous exhibits.
Appeal Steps
After the hearing, the Administrative Law Judge issues a proposed order. If you and the Department agree with the order, the matter is considered resolved unless the Director of the Department decides to review the proposed order. If either party disagrees with the order, that party may appeal to the Director for a decision. If you disagree with the Administrative Law Judge’s proposed order, and wish to appeal the Department decision to District Court, you must first appeal the proposed order to the Director. The Director may hold a hearing and will issue a final decision. If you disagree with the Director’s decision, an appeal may be made to the District Court. District Court decisions may be appealed to the Iowa Supreme Court.
Recovering Litigation Expenses
You may be able to recover some of your administrative and litigation costs if an Order finds that the Department’s position was substantially unjustified on most issues. You must have given the Department all the information necessary to resolve your case and you must have requested recovery of those costs in your appeal.