Chapter 10 - Guidelines for the Forfeiture and Restoration of aBond Posted Pursuant to Iowa Code Section 598.21(8A)
Chapter 10 — Guidelines for the Forfeiture and Restoration of a Bond Posted Pursuant to Iowa Code Section 598.21(8A) outlines the requirements for the forfeiture and restoration of a bond posted pursuant to the Iowa Code Section 598.21(8A). The chapter covers the following topics: general requirements, terms and conditions of forfeiture, and restoration of the bond. General Requirements: • The bond must be posted in the amount of the total of all unpaid taxes, penalties, and interest; • The bond must be accompanied by a sworn statement of financial condition of the taxpayer; • The bond must be in the form of a surety bond or cash deposit; • The bond must be approved by the Department of Revenue; • The bond must be in effect for the entire period of the tax liability, and must remain in effect until all taxes, penalties, and interest are paid in full or the bond is released or forfeited. Terms and Conditions of Forfeiture: • If the taxpayer fails to pay any taxes, penalties, or interest due, the bond shall be forfeited; • The Department of Revenue may issue a notice of forfeiture and require the surety to immediately pay the amount of the bond; • If the surety fails to pay the amount of the bond, the Department of Revenue may proceed to collect the amount due from the taxpayer. Restoration of the Bond: • If the taxpayer pays all taxes, penalties, and interest due, the Department of Revenue may restore the bond to its original amount; • The Department of Revenue may, in its discretion, reduce the amount of the bond or release the bond; • The taxpayer must provide evidence to the Department of Revenue that all taxes, penalties, and interest due have been paid in full; • The surety must provide evidence of financial solvency; • The bond must be in an amount equal to the total of all unpaid taxes, penalties, and interest.
Chapter 10 — Guidelines for the Forfeiture and Restoration of a Bond Posted Pursuant to Iowa Code Section 598.21(8A) outlines the requirements for the forfeiture and restoration of a bond posted pursuant to the Iowa Code Section 598.21(8A). The chapter covers the following topics: general requirements, terms and conditions of forfeiture, and restoration of the bond. General Requirements: • The bond must be posted in the amount of the total of all unpaid taxes, penalties, and interest; • The bond must be accompanied by a sworn statement of financial condition of the taxpayer; • The bond must be in the form of a surety bond or cash deposit; • The bond must be approved by the Department of Revenue; • The bond must be in effect for the entire period of the tax liability, and must remain in effect until all taxes, penalties, and interest are paid in full or the bond is released or forfeited. Terms and Conditions of Forfeiture: • If the taxpayer fails to pay any taxes, penalties, or interest due, the bond shall be forfeited; • The Department of Revenue may issue a notice of forfeiture and require the surety to immediately pay the amount of the bond; • If the surety fails to pay the amount of the bond, the Department of Revenue may proceed to collect the amount due from the taxpayer. Restoration of the Bond: • If the taxpayer pays all taxes, penalties, and interest due, the Department of Revenue may restore the bond to its original amount; • The Department of Revenue may, in its discretion, reduce the amount of the bond or release the bond; • The taxpayer must provide evidence to the Department of Revenue that all taxes, penalties, and interest due have been paid in full; • The surety must provide evidence of financial solvency; • The bond must be in an amount equal to the total of all unpaid taxes, penalties, and interest.