Business tax return deadline extended

Iowa Department of Revenue Director Courtney Kay-Decker has granted an extension of time for affected taxpayers to file the quarterly Iowa sales/use tax and withholding returns for the period ending June 30, 2011. Those returns are normally due on July 31, but can now be filed by Oct. 31, 2011, without penalty or interest.

The Director of the Iowa Department of Revenue is authorized by law to extend the period of time for filing tax returns and to suspend any penalty or interest associated with those returns for taxpayers whose principal residence or business is located in a disaster area declared by the governor.

Gov. Branstad has declared the following six counties bordering the Missouri River to be disaster areas: Fremont, Harrison, Mills, Monona, Pottawattamie, and Woodbury. Information for nonresidents temporarily relocating to Iowa.

The Department is receiving questions regarding nonresidents who temporarily relocate to Iowa due to the flooding along the Missouri River.  Below are answers to some of the frequently asked questions.

• A taxpayer that moves to Iowa temporarily due to flooding would not be considered an Iowa resident for Iowa income tax purposes.
• If a nonresident earns $1,000 or more in Iowa source income (working in Iowa), they would be required to file an Iowa income tax return.
• Employers who have employees working in Iowa should withhold Iowa income tax on wages for work that is performed in Iowa.

For more information, please contact the Iowa Department of Revenue at

idr@iowa.gov or call 515-281-3114 or 1-800-367-3388 (Iowa, Omaha, Rock Island, Moline), 8 a.m. - 4:15 p.m. CT.