# Iowa Code § 421.5: Settling claims for taxes, penalties, and interest abatement

> Iowa · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.5

## Section

- **Citation:** Iowa Code § 421.5
- **Heading:** Settling claims for taxes, penalties, and interest abatement
- **Jurisdiction:** Iowa
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** IA Code / Title X / Chapter 421 / Section 421.5

## Text

(1) As used in this section:

(1) (a) “Department” means the department of revenue.

(1) (b) “Settle” or “settlement” includes any compromise or abatement of any taxes, penalties, or interest.

(2) In addition to the authority granted to the department pursuant to section 17A.10 and notwithstanding section 7D.9, the department may, in its sole discretion, settle any taxes, penalties, or interest.

(3) The department may enter into a settlement in the case of doubtful liability, doubtful collectability, severe economic hardship, or to promote effective tax administration, regardless of whether the amount was the subject of a timely filed appeal or return.

(4) Whenever a settlement is made, the department shall make a complete record of the case showing the tax assessed or claimed due, tax refund claimed, recommendations, reports, and audits of departmental personnel if any, the taxpayer’s grounds for dispute or contest together with all of the evidence, and the amounts, conditions, and settlement of the same.

(5) A taxpayer shall not have the right to a settlement of any tax, penalty, or interest liability under this section. Any determination by the department regarding the settlement shall be discretionary and shall be final and conclusive except in the case of fraud, mutual mistake of material fact, or as otherwise stated in a written settlement agreement between the taxpayer and the department.

(6) The department may require an application for relief under this section.

(7) The department shall adopt rules to administer this section.

[C71, 73, 75, 77, 79, 81, §421.5]94 Acts, ch 1165, §22023 Acts, ch 115, §22, 40

## Nearby sections

- [Iowa Code § 421.1 State board of tax review.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.1.md)
- [Iowa Code § 421.1A Property assessment appeal board.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.1A.md)
- [Iowa Code § 421.2 Department of revenue.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.2.md)
- [Iowa Code § 421.3 Director to have no conflicting interests.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.3.md)
- [Iowa Code § 421.4 Deputies.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.4.md)
- [Iowa Code § 421.5 Settling claims for taxes, penalties, and interest abatement.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.5.md)
- [Iowa Code § 421.6 Definition of return.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.6.md)
- [Iowa Code § 421.7 Interest rate.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.7.md)
- [Iowa Code § 421.8 Penalty for defective return under certain circumstances.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.8.md)
- [Iowa Code § 421.9 Duties and powers — office.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.9.md)
- [Iowa Code § 421.9A Due dates and holidays.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.9A.md)
- [Iowa Code § 421.10 Appeal period applicability.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.10.md)
- [Iowa Code § 421.14 Rules — director’s duties.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.14.md)
- [Iowa Code § 421.15 Seal.](https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.15.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_IA_TX_C421_S421.5. Check the current official text before relying on it. Not legal advice.