IDR Releases Updated Tax Guidance: Pass-Through Entity Tax

Tuesday - 09/19/2023

The Iowa Department of Revenue has released updated tax guidance including the following new or updated Common Questions related to Pass-Through Entity Tax (PTET):

• What is the deadline for making a PTET election?
• How is the PTET calculated and what is the tax rate?
• Will an electing pass-through entity be subject to penalties and interest related to its PTET election and tax payment?
• Can the owners of an electing pass-through entity claim a tax credit for the PTET paid by the electing pass-through entity? If yes, how are the owners' PTET credits calculated?
• How are PTET credits reported to owners?
• How are the PTET credits claimed by owners?
• How will my PTET credit claim affect the 1099-G Certain Government Payments form I may receive from the Department?
• Who can file the 2022 PTET form on behalf of an electing pass-through entity?
• What documents will an electing pass-through entity need to prepare the 2022 PTET form on GovConnectIowa?

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