Electronic Filing Requirement for Businesses, Trusts, and Estates

The following are the thresholds for determining whether a taxpayer is subject to the electronic filing requirement. Impacted returns that are not properly eFiled will be invalid. Taxpayers who meet any of these thresholds and still file paper returns will be treated as nonfilers. Such taxpayers may incur late-file and other penalties, and the statute of limitations for the Department to review the return and assess tax will not begin to run until the taxpayer files the required electronic return(s).

• All income and franchise taxpayers (IA 1120, IA 1065, IA 1120S, IA 1120F, IA 1041)
  • Gross receipts $250,000+
  • Iowa tax credits reported on the return $25,000+
• Pass throughs (IA 1065, IA 1120S, IA 1041)
  • Required to issue 10+ Iowa K-1s 

• Composite (IA PTE-C)

  • Required if related pass-through return (IA 1065, IA 1120S, IA 1041) is required to be eFiled
• Consolidated Iowa return (IA 1120, status 3)
  • Always required
• Moneys and Credits
  • Always required

Requests for Exceptions

Exceptions to the electronic filing requirement may be granted for good cause.

• Good cause includes:
  • Religious objections
  • Act of God or casualty
  • MeF portal permanently closed for the tax year
• Good cause does not include:
  • Inadequate tax preparation software (i.e. software that does not support all forms necessary to file a complete return)

Taxpayers may request exceptions by submitting the Electronic Filing Requirement Exception Request (78-641) before the return is filed. Do not include the request with your return. Requests must be submitted by:

Online: GovConnectIowa
Mail: Iowa Department of Revenue, PO Box 10465, Des Moines, IA 50306-0465

The Department will notify the taxpayer in writing of whether their request for exception has been approved or denied. Requests will be deemed accepted if the Department does not respond within 90 days of receipt of the taxpayer’s request for exception.

Temporary Transition Relief

If a return subject to the electronic filing requirement is improperly filed on paper, the Department will send the taxpayer a letter instructing them to file a proper electronic return within 30 days. If the taxpayer files a proper electronic return within that time, the Department will deem the original paper-filed return a valid return.
This relief only applies to tax years ending on or before 12/31/23
A taxpayer may only benefit from this relief for one return

More detailed information may be found in Iowa Administrative Code rule 701—8.7