IA 1120 Iowa Corporation Income Tax Instructions

# preamble

2025 Iowa Corporation Income Tax Instructions To obtain copies of schedules and forms: Additional information can be found on the Department's website (revenue.iowa.gov). Questions: Email: idr@iowa.gov Phone: 515-281-3114 or 1-800-367-3388 E-File or mail your return to: Corporation Tax Return Processing PO Box 10468 Des Moines IA 50306-0468 Recent Updates Amended Returns Lines 17a and 17b have been added for use by amended return filers only, to account for refunds and credit carryforwards already claimed for the tax year. Third Party Disclosure Designee Taxpayers have the ability to authorize an individual to receive information about this return by providing contac t information for the person they wish to authorize. To do so, the taxpayer must enter the contact information in the section directly above the signature line. This authorization is limited to discussing or receiving information about matters related to this return and does not authorize the individual to act on behalf of the taxpayer. For example, the individual cannot sign an IA 2848 Iowa Department of Revenue Power of Attorney (POA) (14-101) form on behalf of the taxpayer. Authorized Signer The person who signs this return on behalf of the taxpayer must attest that they have authority to act on behalf of the taxpayer in tax matters. This attestation will give the signer full authority to interact with the Department on behalf of the taxpayer without the need to file an additional Representative Certification (14-108) form. This includes the ability to discuss the return and other tax matters with the Department, to act on behalf of the taxpayer, and to appoint a P OA to represent the taxpayer before the Department. Iowa Taxable Income (Line 1) The starting point for calculating Iowa net income is federal taxable income after the application of the federal net operating loss (NOL) deduction. IA 124 Net Operating Loss (NOL) NOLs are no longer separately calculated for Iowa tax purposes. Taxpayers should use the IA 124 Net Operating Loss Adjustment Schedule (41-177) to calculate any pre- 2023 federal NOL carryforward that must be added back or any pre- 2023 Iowa NOL that may be deducted. See IA 124 for more information.

# Schedule A Adjustments

Several adjustments that were previously required on Schedule A have been repealed. These lines have been removed from the schedule and reserved for future use. A new line has been added to Schedule A , Additions and Reductions, to report the deduction for Global Intangible Low -Taxed Income (GILTI) amounts included in federal taxable income. These amounts were previously deducted on the "Other" line.

# Schedule E All corporations are required to complete

Schedule E, Business Activity Ratio (BAR), even if all corporate business is conducted in Iowa. Mandatory Electronic Filing Iowa corporation income taxpayers are required to file their annual returns electronically if they meet any of the following conditions for the tax year: • The taxpayer has at least $250,000 in gross receipts.

• The taxpayer is claiming $25,000 or more in tax credits on the Iowa return for the year.

• The taxpayer is filing a consolidated Iowa return for the year. See Iowa Administrative Code rule 701- 8.7 for definitions and other important information about the electronic filing requirement.

2025 Iowa Corporation Income Tax Instructions, page 2

# General Instructions

Which Return to File • Regular Corporations: Every corporation doing business in this state or deriving income from sources within this state, unless exempt by Iowa Code section 422.34, must file an IA 1120, Iowa Corporation Income Tax Return (42-001). • Cooperatives and Nonprofits Subject to Unrelated Business Income Tax (UBIT): Cooperative associations as defined in section 6072(d) of the Internal Revenue Code (IRC) and entities subject to UBIT must file an IA 1120. Note: Nonprofit entities that are not otherwise required to file an Iowa income tax return, but are filing solely to claim an Iowa tax credit may qualify for an exception to the electronic filing requirement. In order to qualify for this exception eligible nonpr ofits must complete and submit an Electronic Filing Requirement Exception Request form (78- 641); select "other" as the reason for the exception, and write "nonprofit credit claim" in the space provided. • Foreign Sales Corporations (FSCs): FSCs domiciled or incorporated in Iowa must file an IA 1120S Iowa Income Tax Return for an S Corporation (42-004), if any income or loss is reportable to Iowa. • S Corporations, Interest Charge Domestic International Sales Corporations (IC- DISCs): S corporations and IC-DISCs must file an IA 1120S. • Limited Liability Companies (LLCs): LLCs that are taxed as corporations for federal purposes must file an IA 1120. LLCs that file as partnerships for federal purposes must file an IA 1065, Partnership Return of Income (41- 016). Single member LLCs do not need to file a separate Iowa income tax form. They must include their business income from federal Schedule C on their individual income tax returns or on the corporation income tax return of the owner. Owners of single member LLCs and other disregarded entities must include IA Schedule DE, Iowa Disregarded Entity Schedule (41-179) with their return. • Financial Institutions: Every state bank as defined in Iowa Code section 524.103, subsection 45 , a state bank chartered under the laws of any other state, a national banking association, a trust company, a federally chartered savings and loan association, an outof-state state chartered savings bank, a financial institution chartered by the federal home loan bank board, a non- Iowa chartered savings and loan association, or a production credit association doing business in this state must file IA 1120F, Iowa Franchise Tax Return (43-001). • Credit Unions: State credit unions are subject to the Moneys and Credits tax under Iowa Code section 533.329. State credit unions must file an Iowa Credit Union Moneys and Credits Tax Return (57-150).

# When to File

• Regular Corporations Calendar Year Filers: Return is due no later than April 30, 2026. • Fiscal Year: Return is due on the last day of the fourth month after the end of the fiscal year. • Cooperative: Cooperative associations have until the 15th day of the ninth month after the close of their tax period to file a return. • Short Period: If a corporation is required to file a short period return under the IRC , then the Iowa short period return is due 45 days after the original federal due date. • UBIT: A nonprofit corporation reporting unrelated business income on federal form 990-T must file on or before the 15th day of the fifth month following the end of the tax period. If the nonprofit corporation has no unrelated business income, even if filing a form 990- T to claim the small business health care tax credit, no Iowa return or copy of the federal return is required to be filed. Note: If a period or due date ends on a weekend, federal holiday, or holiday as defined in Iowa Code section 421.9A, substitute the next regular business day.

2025 Iowa Corporation Income Tax Instructions, page 3 Automatic Extension of Time to File All taxpayers who have paid 90% or more of their correct tax on or before the original due date of their return automatically have an additional six months in which to file their return and pay any additional tax due with no penalty. Taxpayers who have not paid 90% or more of their correct tax on or before the original due date of their corporation income tax return are not allowed the additional six -month period of time to file and owe both penalty and interest on the additional tax due after the original due date of their return. If an additional payment is necessary in order to meet the 90% requirement, it must be made by the original due date of the return. The automatic extension does not change the due date of the return; it only extends the time to file the return. Such payments can be made electronically on govconnect.iowa.gov or by using the 1120V,

# Iowa Corporation Income Tax Payment Voucher

(96-048). Interest will accrue on any tax due after the original due date of the return. All elections made on a return filed within six months of the original due date will be considered timely. Other Important Information Taxpayer information is confidential. The Iowa Department of Revenue will discuss confidential tax information only with an authorized representative. See page 9 for more information about disclosure and third party access. IRC Changes For tax years beginning on or after January 1, 2020, Iowa has adopted rolling conformity, meaning the state will automatically conform with any changes made to the IRC, except as specified by Iowa law. Capital Loss Carryback Corporations may carry back a capital loss to the three preceding tax years. Refund requests for a capital loss carryback must be made on one or more amended returns for the loss year(s) with a copy of the IA 1139-CAP Schedule, Application for Refund Due to the Carryback of Capital Losses (42- 028) included with the amended returns. An amended return must be filed for each year affected by a capital loss carryback. IA 148 Tax Credits Schedule The IA 148 Iowa Tax Credits Schedule (41-148) must be completed for any tax credits claimed on Schedule C1 other than the fuel tax, composite, and pass-through entity tax (PTET) credits. Other Forms The IA 102 Amended Return Schedule (41-171) must be included with all amended IA 1120 returns. The IA 1120X has been discontinued. Auxiliary Schedules IA 4562B , Iowa Depreciation Accumulated Adjustment Schedule, must be completed to record the cumulative effect of the depreciation adjustment and must be included with the return. Schedule H must be completed by all taxpayers included on a federal consolidated return. Schedules I, J, and L must be used by corporations filing a consolidated return for Iowa and federal purposes to document information included in the Iowa return. Schedule M must be completed by corporations filing a consolidated return for Iowa and federal purposes if one or more members of the federal consolidated group are claiming Public Law 86- 272 protection in Iowa. IA 1120 Instructions All corporations filing a return with the Department must complete all lines and all required schedules for the return to be accepted. "See schedule included" is not acceptable; the return will be considered incomplete and may be rejected.

# Step 1 - Taxpayer Information

Tax Period Enter dates as MMDDYYYY.

Short Period If the current filing period is for less than 12 months, check the short period box. North American Industry Classification System (NAICS) Code Enter the NAICS code for the specific industry group corresponding to the corporation's primary business activity.

2025 Iowa Corporation Income Tax Instructions, page 4 County Number Enter the number of the Iowa county, that is the corporation's commercial domicile or principal place of business. County numbers can be found on the Department's website. Enter 00 if the commercial domicile or principal place of business is not located in Iowa. First/Final Return If this is a first or final return, check the box that best describes the reason.

# Step 2 - Filing Status

Filing Status/Type of Return Mark the appropriate box for filing status and return type. Inactive Return Mark the appropriate box if the corporation has no business operations in any state. Federal Changes Mark the appropriate box. If yes, provide the tax periods changed and file an amended return for each period, if not already filed. Checking the box is not sufficient notice to inform the Department that federal changes have occurred. Note: Taxpayers are required to notify the Department once all issues related to a particular federal audit or examination become final in order to trigger the one- year period in which the Department may examine the affected returns. Even if the taxpayer notifies the Department of the final disposition of some issues that are resolved while others remain outstanding, the period of time in which the Department may examine the return will remain open until the taxpayer properly notifies the Department of the final disposition, triggering the one- year examination period. Property in Iowa Mark the appropriate box. Property is defined as any tangible or intangible property with its primary location in Iowa as described in Iowa Administrative Code rule 701- 501.1, or real property owned or leased in Iowa

# Step 3 - Net Income and Additions to Income

Line 1: Taxable Income - Enter the amount of federal taxable income from federal 1120, line 30.

Line 2: Additions - Enter the total additions from IA 1120 Schedule A, line 20.

# Step 4 - Reductions to Income

Line 4: Reductions - Enter the total reductions from IA 1120 Schedule A, line 20.

Step 5 - Taxable Income

Line 8: Iowa Percentage - Enter the amount from IA 1120 Schedule E, line 13.

# Line 12: Pre-2023 Iowa Net Operating Loss

Carryforward - Enter amount from IA 124, Part II, line 5. The IA 124 must be included with the return. Public Law 86-272 Checkbox Separate filers - complete lines 1 -13 as if you were subject to tax in Iowa, including entering your Iowa sales on Schedule E. Then check this box and enter 0 on line 14. Consolidated filers - Check this box if one or more members of your federal consolidated group are asserting Public Law 86-272 protection in Iowa for the tax year ; list all such members on IA 1120 Schedule M IA Affiliated Group P.L. 86- 272 Entities (42-016). Include only those entities that are subject to Iowa tax for the tax year in completing lines 1- 13; see previous instruction section for Schedule I & Schedule J.

# Step 6 - Tax, Credits, and Payments

Line 14: Total Tax - Enter the amount of tax computed from the tax rate schedule, IA 1120. If the corporation has annualized its income for federal income tax purposes, the corporation must annualize its income for Iowa income tax purposes. If tax is annualized, check the box and include a schedule of the formula used to compute the tax.

Lines 17a and 17b: Amended returns only. Enter any refunds or credit carryforwards already claimed on a prior return for this year on line 17a. Subtract the amount on line 17a from the payments shown on line 17, and enter the result on line 17b. Note: Credit carryforward amounts claimed on a return can only be changed within one year of the end of the tax year for which the overpayment was made. If you are amending within one year of the end of the tax year and wish to reduce t he credit carryforward amount you elected to apply to next year on a prior return, do not include the amount you previously elected to have carried forward to next year, and no longer wish to apply as a carryforward on this line. Instead, include only the revised amount you still wish to carry forward to the next year. This option is not available if your amended return is filed more than one year after the close of the tax year.

2025 Iowa Corporation Income Tax Instructions, page 5

Step 7 - Balance Due

# Line 20: Penalty for Underpayment of Estimated

Tax - Corporations underpaying estimated tax for the total tax shown on IA 1120, line 14 may be subject to a penalty for this underpayment. The underpayment penalty is in addition to the penalties on IA 1120, line 21. The underpayment penalty is computed on IA 2220 Underpayment of Estimated Tax Corporations, S Corporations, Financial Institutions, and Partnerships (45 -006) and the total from that form is entered on IA 1120, line 20. IA 2220 must be included with the return. First return taxpayers are subject to this penalty.

# Line 21: Late Filing and Payment Penalties -

Failure to Timely File a Return: If the return is filed after the original due date of the return and less than 90% of the correct amount of tax was paid by the original due date, multiply the unpaid tax by 5% (.05) and enter that amount on line 21. This penalty is in addition to any penalty for failure to timely pay the tax due, as described below. If you are subject to both penalties, add this penalty amount to the amount calculated below and enter the sum on line 21. Failure to Timely File with Zero Tax Due: Corporations that are doing business in Iowa but have no tax due on line 19 and are filing their annual corporate income tax return after the due date must complete IA 200 Imputed Iowa Late Filing Penalty Worksheet (42- 041) to calculate their late filing penalty. Enter the amount from IA 200, line 6 on line 21. Failure to Timely Pay the Tax Due: A penalty of 5% must be added to the tax due if less than 90% of the correct amount of tax was paid by the original due date of the return. Multiply the unpaid tax by 5% (.05) and enter that amount on line 21. This penalty is in addition to any penalty for failure to timely file, as described above. If you are subject to both penalties, add this penalty amount to the amount calculated above and enter the sum on line 21. Audit or Examination Deficiency: A pena lty of 5% will be added to the unpaid tax if the Department discovers an underpayment during an audit or examination. Fraud: A penalty of 75% will be added to the fraudulent claim or unpaid tax for fraudulent claims or willful failure to file a return. Waivers: Penalties can be waived under limited circumstances, as described in Iowa Code section 421.27. Complete and submit a Penalty Waiver Request (78- 629) form to request a penalty be waived. Line 22: Interest - If payment is received after the due date of the return, interest accrues on the unpaid tax at a rate prescribed by law from the original due date of the return until payment is received. Any portion of a month is considered a full month in calculating interest due on unpaid tax.

# Line 23: Total Amount Due - Payment options include payment through Modernized eFile

(MeF), govconnect.iowa.gov , ACH Credit, or payment by check. Go to the Department's website for electronic payment options. Do not send cash. Submit a voucher if making a payment by check. Vouchers are available on govconnect.iowa.gov. Make checks payable to "Iowa Department of Revenue."

# Step 8 - Overpayment

Line 24: Overpayment - An u nderpayment penalty may be applicable. Subtract any IA 2220 penalty on IA 1120, line 20; enter the remaining overpayment, if any. Line 25: Credit to Next Period's Estimated Tax - Enter the amount of overpayment to be credited to the next tax period. This credit can only be changed after the return due date if the change is requested by the last day of the subsequent year.

# Line 26: Refund Requested - If you would like your refund via direct deposit, complete lines 26a,

26b, and 26c ; otherwise, a paper check will be issued. Do not input your direct deposit information if you have an amount due on line 23. 26a. Input your financial institution's routing number. The routing number for a checking account must be nine digits. 26b. Check either checking or savings to indicate what type of account the refund will be deposited into. 26c. Input your account number. The account number for a checking account may have up to 17 digits. The entire refund amount will be deposited into this one account. Note: The account the refund will be issued to must be located in the United States.

2025 Iowa Corporation Income Tax Instructions, page 6

Schedule A - Additions

# Line 3: Capital Loss adjustment - Enter any net capital loss included in the computation of IA

1120, line 1. Line 4: Contribution adjustment - Enter any net contributions deducted in excess of the federal limitation.

# Line 6: Interest expense adjustments from IA 163

Interest Expense Adjustments (42- 039) - Enter any addition to income from IA 163, line 6. Include the IA 163 with your return. Line 8: Expensing/depreciation adjustments from IA 4562A Iowa Depreciation Adjustment / 4562B

# Iowa Accumulated Depreciation Adjustment

Schedules (41-105) - IRC section 179 expensing and depreciation allowed on the Iowa return may differ from amounts allowed on the federal return. Enter any addition to income from the IA 4562A and IA 4562B. Include the IA 4562A and IA 4562B with your return.

# Line 9: Tax exempt interest and dividends

- Enter the amount of interest and dividends exempt from federal tax. Exclude interest received from certain Iowa bonds, which are listed in Iowa Administrative Code rule 701-302.3. If municipal interest taxable for Iowa purposes differs from total municipal interest reported on the federal return, a schedule must be included.

# Line 14: Federal securities interest and dividends

- Subtract as a reduction the total interest received from federal securities such as U.S. Treasury bonds, notes, bills, and savings bonds included in federal taxable income. Do not include interest on federal refunds. See Iowa Administrative Code rules 701-302.2 and 701- 502.5.

# Line 15: Nonconformity adjustments from IA 101

Nonconformity Adjustments (42- 029) - Certain current-year adjustments may be required because of Iowa's nonconformity with federal law in tax years 2018 and 2019. Enter any addition to income from the IA 101. Include the IA 101 with your return.

# Line 16: All-source PTE modifications from Iowa

K-1s - Report the positive adjustments from the corporation's distributive share of all-source Iowa modifications furnished to the corporation on its Iowa K-1 from any pass-through entity such as a partnership, estate, or trust.

Line 17: Pre-2023 federal NOL addback - Enter any federal NOL incurred prior to January 1, 2023, and applied on this year's federal 1120, from IA 124, Part I, line 3.

# Line 18: Charitable contribution adjustment from

Iowa credit - When a corporation earns certain Iowa tax credits for making a charitable contribution, Iowa law prohibits a tax deduction related to that charitable contribution. Add any charitable contribution made by the corporation to the extent the charitable contribution relates to any of the following Iowa tax credits: the Iowa School Tuition Organization Tax Credit, the Iowa Charitable Conservation Contribution Tax Credit, the Endow Iowa Tax Credit , the Iowa Hoover Presidential Library Tax Credit, the Iowa Farm to Food Donation Tax Credit. Line 19: Other - Enter any amounts not specifically identified above. A detailed schedule must be included or these amounts may not be allowed.

# Schedule A - Reductions

Line 3: Capital Loss adjustment - Enter any net capital loss previously not allowed as an Iowa deduction that was not taken at the federal level . Line 4: Contribution adjustment - Enter any net contributions previously not allowed as an Iowa deduction that was not taken at the federal level. Line 5: Amended Returns with a capital loss carryback only. Enter the capital loss amount shown on IA 1139- CAP Application for Refund Due to the Carryback of Capital Losses (42-028), line 5, carried back to this year. Include a copy of the IA 1139- CAP with this amended return. You must file an amended return for the tax year in order to claim any refund due to a capital loss carryback.

# Line 6: Interest expense adjustments from IA

163 - Enter any reduction to income from Form IA 163, Interest Expense Adjustments, line 6. Include the IA 163 with your return.

# Line 7: Global Intangible Low -Taxed Income

(GILTI) - Enter the net GILTI to the extent included on IA 1120, line 1.

2025 Iowa Corporation Income Tax Instructions, page 7 Line 8: Expensing/depreciation adjustments from IA 4562A/B - IRC section 179 expensing and depreciation allowed on the Iowa return may differ from amounts allowed on the federal return. Enter any reduction to income from the IA 4562A and IA 4562B. Include the IA 4562A and IA 4562B with your return. Line 13: Foreign dividend income exclusion: Complete Schedule B. The foreign dividend exclusion, including subpart F income, follows the same criteria as IRC section 243 for domestic dividends. • If the percentage of ownership is less than 20%, then 50% of the dividend income is excluded. If the percentage of ownership is equal to or greater than 20%, then 65% of the foreign dividend income is excluded • If the taxpayer is a small business investment company operating under the Small Business Investment Act of 1958, then 100% of the foreign dividend income is excluded. • If the dividend is a qualifying dividend as defined in IRC section 243(b), then 100% of the foreign dividend is excluded. These amounts are shown on federal form 1120 Schedule C, lines 14, 16a, 16b, 16c, and 18.

# Line 14: Federal securities interest and dividends -

Enter the amount of interest and dividends from federal securities included in federal income. Do not include interest on federal refunds. Include a schedule showing a breakdown of federal security interest by payer.

# Line 15: Nonconformity adjustments from IA 101

- Certain current -year adjustments may be required because of Iowa's nonconformity with federal law in tax years 2018 and 2019. Enter any reduction to income from the IA 101. Include the IA 101 with your return.

# Line 16: All-source PTE modifications from Iowa

K-1s - Report the negative adjustments from the corporation's distributive share of all-source Iowa modifications furnished to the corporation on its Iowa K-1 from any pass -through entity such as a partnership, estate, or trust. Line 19: Other - Enter any amounts not specifically identified above. A detailed schedule must be included or these amounts may not be allowed. Amounts entered on this line may include, but are not limited to, the amount of a federal, state, or local grant provided to a communications service provider during the tax year to the extent included on IA 1120, line 1, if the grant was used to install broadband infrastructure that facilitates broadband service in targeted service areas at or above the download and upload speeds.

Schedule B - Foreign Dividend Exclusion See instructions for IA 1120 Schedule A, line 13.

# Schedule C1 - Credits

Enter all applicable amounts on the lines specified. Include fuel credit, nonrefundable credits, other refundable credits, composite credits, and PTET credits. Include IA 4136 Iowa Fuel Tax Credit (41- 036), IA 148, and IA

Schedule CC Iowa Composite and PTET Credits (41-178).

# Schedule C2 - Payments

Enter all applicable amounts on the lines specified. Note: Make sure to correctly distinguish between credits and payments. For example, a credit from

a prior period overpayment must be listed as a payment on Schedule C2. Additional Information Complete all applicable statements and questions. Schedule E - Business Activity Ratio (BAR) Complete all applicable lines. All figures are net of amounts used in Iowa Schedule D. Dividends are net of special deductions and the Iowa foreign dividend exclusion. Business income means income that arises from the corporation's unitary trade or business, a part of which is conducted within Iowa. Business income must be apportioned to Iowa by means of the BAR. Line 1a: Gross receipts from sale of tangible personal proper ty - Include all gross receipts after returns and allowances, from the sale of tangible personal property, as reported on the federal Form 1120. See Iowa Administrative Code rule 701-503.5 for more information on sourcing receipts from the manufacture or sale of tangible personal property.

2025 Iowa Corporation Income Tax Instructions, page 8 Line 1b: Gross receipts from performance of services - Include all gross receipts after returns and allowances , from the performance of services, as reported on the federal Form 1120. See Iowa Administrative Code rules 701- 503.6(1), 701-503.6(2), and 701-5 03.6(4) for more information on sourcing receipts from performance of services.

# Line 1c: Gross receipts from railroad, trucking, aviation, or other transportation activities -

Include all gross receipts after returns and allowances, from the performance of railroad operations; transportation operations of an airline, truck and bus line companies, water transportation companies, freight car and equipment companies; and oil, gasoline, gas, or other pipeline operations, as reported on the federal Form 1120. See Iowa Administrative Code rules 701 - 503.7(1), 701- 503.7(2), and 701- 503.7(3) for more information on sourcing receipts from performance of transportation activities. Line 1d: Gross receipts from telecommunication services - Include all gross receipts afte r returns and allowances , from telecommunication operations, as reported on the federal Form 1120. See Iowa Administrative Code rule 701 - 503.7(4) for more information on sourcing receipts from telecommunication services. Line 1e: Gross receipts from radio and television broadcasts - Include all gross receipts after returns and allowances , from radio and television broadcasting operations, as reported on the federal Form 1120. See Iowa Code section 422.33(2) (a)(2)(e) and Iowa Administrative Code rule 701-503.7(5) for more information on sourcing receipts from broadcasting operations.

# Line 1f: Gross receipts from printed and electronic media - Include all gross receipts after returns and allowances , from printed and electronic media, as reported on the federal Form

1120. See Iowa Administrative Code rule 701- 503.7(6) for more information on sourcing receipts from printed and electronic media.

# Line 1g: Gross receipts from utilities services

- Include all gross receipts after returns and allowances, from utilities services, as reported on the federal Form 1120. See Iowa Administrative Code rule 701-503.7(7) and 701-503.7(8) for more information on sourcing receipts from utilities services. Line 1h: Gross receipts from financial activities - Include all gross receipts after returns and allowances , from financial activities, as reported on the federal Form 1120. See Iowa Administrative Code rule 701-503.6(3) for more information on sourcing receipts from financial activities.

# Line 10: Partnership Gross Receipts - When reporting gross receipts from another partnership, include a schedule detailing the partnership name, partnership federal employer ID number

(FEIN), share of partnership Iowa receipts, and share of partnership everywhere receipts for each partnership included on this line. Investment Business Income: All investment income that is business income, including capital gains or losses, must be included in the computation of the BAR if the investment income is derived from intangible property that has become an integral part of some business activity occurring regularly in or outside of Iowa. The investment income must be included in Column A (numerator) to the extent the intangible property that produced the income is an integral part of some business activity occurring regularly in Iowa. All other investment income that is business income may, at the taxpayer's election, be included in the computation of the BAR. On the return, the taxpayer elects whether to include in the BAR of that year and all subsequent years, investment income it has determined to be business income. If elected to be included, then for that year and for all subsequent years total investment income that has been determined to be business income is included in the numerator as follows: (1) Accounts receivable interest is to be included in the numerator to the extent allocable to Iowa. (2) Other interest, net dividends, capital and ordinary gains, and royalties from intangibles must be included in the numerator if the commercial domicile is in Iowa. See Iowa Administrative Code rule 701-503.2(3) for attributing certain income from intangibles. (3) Capital and ordinary gains, rent, and royalties from tangible and real property must be included in the numerator if the property is located in Iowa.

2025 Iowa Corporation Income Tax Instructions, page 9 For a corporation first doing business in Iowa, the inclusion of investment income determined to be business income in the BAR of that year's initial return is binding on all subsequent years' returns. The election to include business investment income in the BAR can later be changed only with permission of the Director of the Iowa Department of Revenue. See Iowa Administrative Code rule 701-503.2 for more inf ormation about apportionment of investment income. Apportionment Guidelines: For more information about allocation and apportionment of Iowa income, see Iowa Code section 422.33(2) and Iowa Administrative Code 701-chapter 503. Confidentiality and Fair Information Practices Notice: Information from this return may be made available to the IRS or to tax officials of another state under a tax information exchange program. Except as allowed by law, information on this return cannot be released to anyone who is not an Iowa Department of Revenue or IRS employee. Any Department of Revenue employee who discloses tax information without legal authority is subject to a fine of $1,000. Any applicable information requested must be provided. The information is necess ary to complete, correct, or process tax returns; to calculate tax due; to collect tax, interest, and penalties; or to carry out administrative duties. If necessary information is not provided, or if fraudulent information is provided, penalties and interest may be assessed and criminal prosecution may result. Without required information, the exemptions, credits, deductions, or adjustments shown on returns may be disallowed. Third Party Disclosure Designee: If the taxpayer would like to designate an indiv idual to discuss this return with the Department, complete this section with that individual's information. An individual listed in this section will be able to discuss and receive information from the Department about this return. This authorization is specific to the corporate income tax return for this tax year. If the taxpayer wishes to have this individual represent the taxpayer on other matters, or for other tax years, the taxpayer must submit IA 8821 Tax Information Disclosure Designation (14 -104) or IA 2848 Iowa Department of Revenue Power of Attorney (14-101). This authorization is limited to the ability to discuss the return and receive return information from the Department. It does not authorize the individual to act on behalf of the taxpayer or to appoint another person as p ower of attorney for the taxpayer. Authorized Signer: By signing this form, you attest that you are authorized to act on behalf of the corporation in tax matters. The Department will consider the person who signs this form to have full authority to interact with the Department on behalf of the taxpayer without the need to file an additional Representative Certification form. This includes the ability to discuss the return and other tax matters with the Department, act on behalf of the taxpayer, and to appoint a p ower of attorney to represent the taxpayer before the Department. Signer's contact information: As an authorized representative of the taxpayer, the Department may be required to send you copies of certain correspondence related to tax matters before the Department. Provide your preferred address for receiving such correspondence. If left blank, correspondence addressed to you will be sent to the address listed for the entity at the beginning of the return. Preparer's Information: If the return was prepared by someone other than the taxpayer, all lines for preparer information must be completed. Enter the FEIN or preparer tax identification number (PTIN) for the preparer's identification. A Tax Return Preparer as defined by Iowa Code section 421.62 may be subjected to penalty for failure to include their PTIN.