Just an update on this issue..

So I responded back to the Iowa Department of Revenue with a letter asking them for clarification regarding what explanation they required as to my Demand for Lawful Money Reduction item filed on my 1040 form. I sent it in last week.

Today, I checked the Iowa Refund site, and they approved the refund and state that it is in the mail. The problem though is that they are only refunding about 10% of what was demanded on the 1040 form.

I'm assuming I will only receive a check and no explanation in regards to how they came up with their new refund number. Any advice on how to proceed?

Thanks,
Breneth