AboutIvan Roth Expertise Federal and State Income taxes I do tax returns for partnerships and C corporations I am well versed with State Franchise taxes for CA, CT, FL,NY,TN,TX.
Experience Eight years as tax manger for a real estate company
Question I am an artist and reside and work in Colorado. In Iowa, two parties, one private, one a municipality, each purchased a sculpture from me, one in 2004 and one in 2006. I paid federal and Colorado state taxes on the income derived from these sales. I have just received a letter from the Iowa Department of Revenue stating that I may be required to file an Iowa return as the income is considered Iowa "source income." Isn't this taxation without representation? I used no Iowa state services; I paid tax on the income in the state in which I reside full time. Thank you for your assistance.
Answer Hi Marilyn I remember the Boston Tea Party,
you are right this would be similar to buying two cars and saying GM manufacturing was subject to the Iowa income tax
Unless you were doing business in Iowa I can't imagine what their reasoning is?
what I wonder is this did you do any work in Iowa such as installing the sculptures? if the private sculpture was delivered in Iowa you could have been required to collect sales tax. I think you need to clarify the basis that Iowa cites for their position.
