Any Iowa Practitioners?

[WICPA]

Have a client here in Wisconsin who received and inheritance from a relative in Iowa. He received the money but the law firm settling the estate sent him a letter telling him he owes a 10% tax payable to Iowa Department of revenue. I have yet to see the letter but was wondering first, does Iowa have an estate tax? Secondly I had told him the estate would pay any tax due before he received anything so this seems a little unusual to me. No K-1 received yet but they did request an id number from him. Wondering if it is possible there is estate tax due but the proceeds of the estate were distributed prematurely.

Thanks for any input.

[TAXNJ]

Not from....

Have a client here in Wisconsin who received and inheritance from a relative in Iowa. He received the money but the law firm settling the estate sent him a letter telling him he owes a 10% tax payable to Iowa Department of revenue. I have yet to see the letter but was wondering first, does Iowa have an estate tax? Secondly I had told him the estate would pay any tax due before he received anything so this seems a little unusual to me. No K-1 received yet but they did request an id number from him. Wondering if it is possible there is estate tax due but the proceeds of the estate were distributed prematurely.

Thanks for any input.

Iowa but check this:

https://www.extension.iastate.edu/agdm/wholefarm/html/c4-25.html

[TAXNJ]

What if any....

update do you have to share?

What are you telling the client now to what you said originally “Secondly I had told him the estate would pay any tax due before he received anything so this seems a little unusual to me.”?

How would a K-1 be sent if there was no Recipient ID furnished as you said originally, “No K-1 received yet but they did request an id number from him.”?

Were the proceeds distributed because you said originally he did receive the money, then you said “…the estate would pay any tax due before he received anything…” but later you said “…but the proceeds of the estate were distributed prematurely…”?.