How to Get a Business Tax ID Number in Iowa

An Iowa Business Tax ID Number, often referred to as an IDR ID, is a state-specific identifier assigned by the Iowa Department of Revenue. This number is distinct from a Federal Employer Identification Number (EIN) from the IRS.

Its function is to track a business’s state tax obligations, including the collection and remittance of various taxes required by Iowa law, enabling them to legally conduct certain activities and fulfill their tax reporting duties.

Determining Your Need for an Iowa Tax ID

Your business needs an Iowa tax ID if it is required to collect and remit sales tax. If your business sells tangible personal property, specified digital products, or provides taxable services in Iowa, you must register for a sales tax permit. This permit authorizes your business to collect the 6% state sales tax, plus any applicable local option sales taxes from customers, and is not a license to purchase items tax-free for business use.

Having employees is another reason to get an Iowa tax ID. Any employer that maintains an office or transacts business in Iowa and is required to withhold federal income tax for employees must also register to withhold Iowa income tax. The state will issue a separate Iowa Withholding Permit Number for this purpose.

Other activities can also require an Iowa tax ID. If you buy taxable items for your business from out-of-state suppliers without paying sales tax, you must remit use tax to Iowa. Specific industries, such as those involved in automobile rentals or hotel services, also have unique registration requirements, so businesses should evaluate all operations to determine their needs.

Information Needed for Your Application

A Federal Employer Identification Number (EIN) is required for most business structures, including corporations and partnerships. If you have applied for an EIN but haven’t received it, you can indicate “applied for” on the application. Sole proprietors may use their Social Security Number in some cases, but an EIN is necessary for hiring employees.

You will also need to provide specific details about your business and its owners, including:

• The legal business name and any trade name (DBA)
• A physical business address (not a P.O. Box) and a mailing address
• Your business phone number and legal structure (e.g., LLC, S-Corporation)
• The full legal names, Social Security Numbers, and home addresses for all responsible parties like owners or corporate officers
• The date your business began operating in Iowa
• A description of your principal business activity, including the NAICS code

You must identify the specific tax permits you need, such as for sales tax, withholding tax, or use tax. Registration for these permits is free.

The Application Process via GovConnectIowa

To get an Iowa tax ID, you must use the state’s online portal, GovConnectIowa. First, navigate to the website and create a user logon, which will give you access to the system for registration and future tax management.

After creating your logon, select the option to “Register a New Business.” The guided application will prompt you to enter the business, owner, and tax permit information you previously gathered. The system will require you to input details systematically before you can submit the application to the Iowa Department of Revenue.

After You Receive Your Tax ID Number

After you submit your application, the Iowa Department of Revenue will process it. If you register online, you can receive your account number in as little as one business day, though it can take up to six weeks by mail. Correspondence will be available in the “View Letters” section of the GovConnectIowa portal. You can begin conducting business and collecting tax as soon as your application is submitted, as your copy serves as temporary proof.

Once you have your tax ID, a primary responsibility is the timely filing of tax returns for each permit you hold. The Department of Revenue determines your filing frequency—quarterly, monthly, or semi-monthly—based on your expected tax liability. All future filings and payments should be managed through the GovConnectIowa portal.

You are also required to maintain complete and accurate business records. These records are necessary to substantiate the figures reported on your tax returns and must be available for inspection by the Department of Revenue if requested.