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INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES, §422.40
422.40 Cancellation of authority — penalty — offenses.
1. If a corporation required by the provisions of this division to file any report or return
or to pay any tax or fee, either as a corporation organized under the laws of this state, or as
a foreign corporation doing business in this state for profit, or owning and using a part or all
of its capital or plant in this state, fails or neglects to make any such report or return or to
pay any such tax or fee for ninety days after the time prescribed in this division for making
such report or return, or for paying such tax or fee, the director may certify such fact to the
secretary of state. The secretary of state shall thereupon cancel the articles of incorporation
of any such corporation which is organized under the laws of this state by appropriate entry
upon the margin of the record thereof, or cancel the certificate of authority of any such foreign
corporation to do business in this state by proper entry. Thereupon all the powers, privileges,
and franchises conferred upon such corporation by such articles of incorporation or by such
certificate of authority shall cease and determine. The secretary of state shall immediately
notify by registered mail such domestic or foreign corporation of the action taken by the
secretary of state.
2. Any person or persons who shall exercise or attempt to exercise any powers, privileges,
or franchises under articles of incorporation or certificate of authority after the same are
canceled, as provided in any section of this division, shall pay a penalty of not less than
one hundred dollars nor more than one thousand dollars, to be recovered by an action to be
brought by the director.
3. Any corporation whose articles of incorporation or certificate of authority to do
business in this state have been canceled by the secretary of state, as provided in subsection
1, or similar provisions of prior revenue laws, upon the filing, within ten years after such
cancellation, with the secretary of state, of a certificate from the department that it has
complied with all the requirements of this division and paid all state taxes, fees, or penalties
due from it, and upon the payment to the secretary of state of an additional penalty of fifty
dollars, shall be entitled again to exercise its rights, privileges, and franchises in this state;
and the secretary of state shall cancel the entry made by the secretary under the provisions
of subsection 1 or similar provisions of prior revenue laws, and shall issue a certificate
entitling such corporation to exercise its rights, privileges and franchises.
4. A person, officer or employee of a corporation, or member or employee of a
partnership, who, with intent to evade a requirement of this division or a lawful requirement
of the director, fails to pay tax or fails to make, sign, or verify a return or fails to supply
information required under this division, is guilty of a fraudulent practice. A person,
corporation, officer or employee of a corporation, or member or employee of a partnership,
who, with intent to evade any of the requirements of this division, or any lawful requirements
of the director, makes, renders, signs, or verifies a false or fraudulent return or statement,
or supplies false or fraudulent information, or who aids, abets, directs, causes, or procures
anyone so to do, is guilty of a class “D” felony. The penalty is in addition to all other penalties
in this division.
[C35, §6943-f36; C39, §6943.072; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §422.40]
83 Acts, ch 160, §6
Referred to in §422.16
Wed Feb 08 03:44:54 2017
Iowa Code 2017, Section 422.40 (11, 0)
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