A bill for an act relating to awarding the costs in administrative hearings or court proceedings involving the collection of tax, penalties, and interest by the department of revenue.

SF 524 changes Iowa's tax dispute rules by allowing taxpayers who win administrative hearings or court cases against the Department of Revenue to recover more costs. It removes the current $25,000 cap on recoverable costs and expands eligible expenses to include reasonable attorney fees, expert witness costs, and necessary studies. The bill shifts the burden of proof: if a taxpayer substantially wins on the amount or key issues, the Department must prove its tax position was "substantially justified," rather than the taxpayer having to prove the Department was wrong. This applies to disputes over tax, penalty, or interest collection.