Iowa state revenue officials report a “huge response” to a one-time offer allowing Iowa tax dodgers to settle their debts if they have been illegally putting out-of-state license plates on luxury motorhomes.
The Des Moines Register reported that the cases typically involve Iowans who have registered their recreational vehicles with shell companies in Montana. By doing so, RV owners have often avoided paying thousands of dollars in Iowa taxes and fees because Montana residents do not pay general sales taxes.
Tuesday (Oct. 22) was the final day for people to enter into settlements with the Iowa Department of Revenue to comply with state tax laws without consequences. Those who don’t pay up could be hit with big state tax penalties or even charged with a crime, state officials have warned.
Dozens of settlements are being reached and just over $100,000 in back taxes have been collected since the offer was announced in late August, said Victoria Daniels, the state revenue agency’s public information officer. Two of the department’s attorneys have been working on settlements in cooperation with the Iowa attorney general’s office.
“It has been a huge response — quite amazing,” Daniels said.
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