Many Federal and Iowa 2016 Refunds Will Be Delayed
The Path Act directed IRS to withhold refunds for taxpayers claiming the earned income tax credit and the additional child tax credit until February 15. This is a fraud prevention measure. IRS has stated that refunds for returns claiming these credits will likely not be available until the week of February 27 at the earliest.
The Iowa Department of Revenue has just announced that it will likely not issue refunds for returns claiming the earned income tax credit until early March because of the same fraud prevention concerns. For more information on this and other Iowa notices, read this.
Other December Happenings
We work to keep you up to date on the latest court cases, laws, and issues important to you. Here's a summary of additional updates for December:
In Westco Agronomy Co. v. Wollesen, No. 15-0471 (Iowa Ct. App. Dec. 21, 2016), the court affirmed a jury award of $576,189 to a farm couple that was defrauded by a cooperative salesperson. The jury awarded the damages against the cooperative on the grounds that the salesperson acted within the actual or apparent authority granted by the cooperative.
In Graham v. Myers, No. 15-1963 (Iowa Ct. App. Dec. 21, 2016), the court reversed a district court ruling and found that property owners had not obtained title to a grassy strip of land owned by their neighbor through either adverse possession or boundary by acquiescence.
In Halvorson v. Bentley, No. 15-0877 (Iowa Ct. App. Dec. 21, 2016), the court ruled that a deed granting a “12-foot wide easement” with no other restrictions gave the grantee parking privileges, not just the right to use the easement for ingress and egress.
December 19, 2016
As we close out the year, we pause to review important developments in agricultural law from 2016. The year saw several notable rulings under the Clean Water Act,as well as the progression of several key Clean Water Act cases. Federal regulators unveiled new rules, and Congress passed legislation impacting producers and ag businesses. As always, the courts were busy and so were we. It seems likely that 2017 will be even busier as we track new legislation and rulemaking proposed by a new administration. The transformation of agencies key to agriculture, such as the USDA, the Treasury, and the EPA, mean big change ahead. We'll be here to keep you posted!
Clean Water Rule Sits Idle.
Since October of 2015, the embattled Clean Water Rule, which was finalized by the EPA and the U.S. Army Corps Engineers on May 27, 2015, has been stayed nationwide. In other words, the agencies cannot use it. The final Rule defines “waters of the United States” or those waters over which the federal government has Clean Water Act jurisdiction. The Rule, which identifies eight categories of “jurisdictional waters,” retained most of the provisions from its proposed form and added additional controversial provisions as well. Immediately upon publication of the Rule on June 29, 2015, the majority of states filed actions challenging the validity of the Rule. Industry groups also challenged the Rule.
Continue reading here.
The Iowa Supreme Court recently provided an excellent overview of the rules governing the partition of concurrently owned property in Iowa. In reversing a court of appeals decision ordering a partition in kind, the Court reiterated that Iowa law favors partition by sale. In the case before it, the Court ruled that the party seeking an in-kind division had not established that such a split would be both equitable and practicable.
The parties were biological siblings (a brother and a sister) who owned two separate farm properties as tenants in common. In 2006, the parties received the Butler County “home place,” via inter vivos gift, from their parents. In 2011, the parties received a tract located in Hardin County through a testamentary gift from their biological aunt. The Butler County tract consisted of 315 acres, 115 of them tillable and the rest pasture and hay ground. The brother’s expert appraised the Butler County land at $929,000, and the sister’s expert appraised it at $1.2 million.
The Hardin County property consisted of 162.92 acres, of which 110 was tillable and the rest pasture. The brother’s expert appraised the Hardin County land at $778,000, and the sister’s expert appraised it at $620,000.
Continue reading here.
On December 20, 2016, we hosted Dr. Keri Jacobs, as she presented a webinar explaining important Iowa Cooperative concepts. Dr. Jacobs is an assistant professor and cooperatives extension economist in the Department of Economics at Iowa State University. The webinar addressed a number of questions including: How does a co-op make patronage allocation decisions? What does "equity redemption" mean? What are the systems co-ops use? What are the options a co-op has in making patronage allocation decisions (Qualified and Non-Qualified)? What role does DPAD play in the co-ops decisions? What are member-related implications in either choice?
The webinar is available for replay here.
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We're Looking Forward to the New Year!
As we close the year, we want to wish you all a happy new year! Thank you so much for your valued support in 2016. Thanks for attending our tax schools, our September Seminars, and our webinars. Thank you for subscribing to TaxPlace and reading our articles, blogposts, and newsletters. We appreciate you all! We are looking forward to what 2017 has in store as we continue to keep you up to date on the latest in agricultural law and taxation!
Couldn't Attend Tax School?
No worries. We have the entire two-day seminar available for replay on TaxPlace. For a $150 one-year subscription you can view these and other replays at your convenience:
December 14, 2016 Webinar Replay - Form 8867 Due Diligence Webinar
December 13, 2016 Seminar Replay - DPAD - 43rd Annual Federal Income Tax Schools
December 12, 2016 Seminar Replay - IRS Issues - 43rd Annual Federal Income Tax Schools
The Center for Agricultural Law and Taxation does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. The Center's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.