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CAMACHO v. IOWA DEPT. OF REV. AND FINANCE

No. 01-2062.

666 N.W.2d 537 (2003)

Jill CAMACHO and Glen A. Stankee, Appellants, v. IOWA DEPARTMENT OF REVENUE AND FINANCE and State Board of Tax Review, Appellees.

Supreme Court of Iowa.

Rehearing Denied August 5, 2003.

Attorney(s) appearing for the Case

Glen A. Stankee of Ruden, McClosky, Smith, Schuster & Russell, P.A., Fort Lauderdale, Florida, and Kris Holub Tilley of Davis, Brown, Koehn, Shors & Roberts, P.C., Des Moines, for appellants.

Thomas J. Miller, Attorney General, and Lucille M. Hardy, Assistant Attorney General, for appellees.

NEUMAN, Justice.

The Iowa Department of Revenue and Finance sent tax assessments to petitioners, Jill Camacho and Glen Stankee, for taxes owed on distributions from an Iowa subchapter S corporation. Petitioners, who are both nonresidents, protested. First the agency, and then the district court on judicial review, affirmed the assessments. On appeal, Camacho and Stankee pose two arguments: (1) subchapter S corporation "nonbusiness" interest income should be allocated...

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