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DEPARTMENT PERFORMANCE

DEPARTMENT PERFORMANCE

Revenue

Kraig Paulsen, Director

Mission Statement:
To serve Iowans and support government services in Iowa by collecting all taxes required by law, but no more.

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•  Performance Plan - How we measure our progress


•  Strategic Plan - How we plan for progress


•  Performance Report - How we report our progress


• Department Home Page - Learn more about this department

Why this is important:
Without being required to file electronically, Iowans choose to to do so in increasing numbers every year. This reduces tax errors and saves State resources.


What we're doing about this:
The Department works closely with the IRS to encourage taxpayers to file both the federal and State income tax returns electronically. The Department also works closely with tax preparers and software vendors to update forms annually and encourage availability of electronic filing options.

Iowa participates in the Free File Alliance, which provides free electronic filing to taxpayers whose incomes are less than $66,000. Links to online software are available on the Department's website.

The Department also markets electronic filing to tax practitioners and taxpayers. Each year the Department asks business and professional organizations and the media to include Iowa e-filing information when they communicate with their customers about taxes.

Why this is important:
Deposits made electronically are processed faster than paper transactions. Efficient deposits in the General Fund and other State funds allow State government to reliably provide services to the citizens of Iowa.


What we're doing about this:
Electronic filing of payments is encouraged for monthly and annual filers of sales tax and individual income tax withholding. In the state of Iowa, more than 120,000 businesses collect and remit sales tax on behalf of customers and more than 50,000 employers withhold and remit income tax on behalf of employees. Electronic payment options are also available for individual income, corporation income, and fiduciary taxpayers. Some taxpayers are required to pay electronically (fuel excise tax filers and semi-monthly filers of withholding and sales tax payments); however, others choose to.

The Department conducted an analysis of how taxpayers submit payments to better understand taxpayer behavior regarding the choice of electronic payment options. The Department discovered that taxpayers utilizing professional tax preparers are the largest source of paper payments received and that over 60 percent of individual income taxpayers in every age classificiation paid via check.

Why this is important:
When taxpayers fail to pay established tax liabilities to the State, the Department undertakes efforts to collect all taxes owed. The Centralized Collection Unit (CCU) is comprised of both Revenue employees and a third-party vendor. In addition to assisting the Department of Revenue with tax collections, the third-party vendor also provides collection services to: Department of Human Services (DHS) Child Support Recovery Unit, DHS Health and Wellness Premiums, DHS Medicaid Provider Overpayments, Department of Natural Resources, Iowa College Aid, and Iowa Insurance Division.


What we're doing about this:
The Department strives to provide consistent, fair, and professional collection services. The goal of CCU is to create new collection partnerships, while maintaining existing partnerships.

Why this is important:
Through audit programs undertaken by the Compliance Services staff and the Tax Gap Program, the Department identifies taxpayers who failed to file returns or incorrectly calculated tax liabilities on filed returns. This achieves the Department's misson to collect all taxes required by law, but no more than is required.

What we're doing about this:
The Department has reorganized to improve coordination between audit and collection staff.

Audit programs are regularly reviewed to ensure both a positive return on investment and compliance effectiveness.

The Department continues to invest in technology to improve our ability to detect non-compliance and support enforcement efforts.

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