2023 Iowa Acts, Senate File 565 made changes to the Iowa Department of Revenue’s settlement and abatement laws and authority, effective January 1, 2024. The Department has adopted new rules to implement this law change. See Iowa Administrative Code chapter 19 for more information.

The Department is also updating its procedures in conjunction with this law change. Effective January 1, 2024, anyone seeking an abatement of tax must file an Abatement Application (96-131) with the Department. Those applying for penalty waiver only can continue to use the Penalty Waiver Request (78-629). Also effective January 1, 2024, the Offer in Compromise application packet is available online.