CORONAVIRUS

Iowa extends state income tax deadline to July 31

Federal taxes also can be delayed, but deadlines are different

A close-up view shows intricate details on the Iowa Capitol building in Des Moines on Thursday, Dec. 19, 2019. (Andy Abe
A close-up view shows intricate details on the Iowa Capitol building in Des Moines on Thursday, Dec. 19, 2019. (Andy Abeyta/The Gazette)

DES MOINES — The nearly 1.5 million people who annually file an Iowa income tax return will get more time this year as the state looks for ways to lessen the blow of COVID-19’s economic impact.

The order to extend the filing and payment of state income taxes and other forms of state taxes was meant “to provide flexibility to hard-working Iowans whose lives have been disrupted,” according to state Department of Revenue Director Kraig Paulsen, who signed it.

The order extends to July 31 the filing and payment deadlines for state income, franchise, and moneys and credits taxes that otherwise were due starting March 19. Also, state income tax refunds from returns already filed continue to be processed. Taxpayers can check the status of their refunds at tax.iowa.gov/wheres-my-refund.

The action Thursday means the state joins the federal government in delaying the deadline for paying taxes — but the order also means taxpayers face two different sets of deadlines.

Under the federal delay, income taxpayers still must file a return by the usual April 15 deadline, unless they file for a six-month extension.

But if they owe money, most have another 90 days to pay it.

Rules for the federal delay still are being developed, but officials have said the those who owe less than $1 million would be able to take advantage of it.

Also Thursday, the state extended one income tax withholding deposit due date for certain taxpayers. The change is designed to provide flexibility to businesses.

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The order extends the income tax withholding deposit due date for the period ending March 15 from March 25 to the new deposit due date April 10. It applies to Iowa residents or other taxpayers doing business in Iowa who remit income tax withholding on a semimonthly basis.

No late-filing or underpayment penalties will be assessed for taxpayers who comply with the extended filing and payment deadlines. Interest on unpaid taxes covered by the order are due beginning Aug. 1.

Taxpayers and tax professionals who need assistance can contact the Iowa Department of Revenue by email at idr@iowa.gov or call the taxpayer services phone line at 515-281-3114 or 1-800-367-3388.

Comments: (515) 243-7220; rod.boshart@thegazette.com

The Associated Press contributed.

An FAQ on the order

According to the Iowa Department of Revenue, the order applies to:

• IA 1040 Individual Income Tax Return and all supporting forms and schedules

• IA 1040C Composite Return and all supporting forms and schedules

• IA 1041 Fiduciary Return and all supporting forms and schedules

• IA 1120 Corporation Income Tax Return and all supporting forms and schedules

• IA 1120F Franchise Tax Return for Financial Institutions and all supporting forms and schedules

• IA 1065 Iowa Partnership Return and all supporting forms and schedules

• IA 1120S S Corporation Return and all supporting forms and schedules

• Credit Union Moneys and Credits Tax Confidential Report

What does the deadline extension apply to?

The tax returns listed above and any tax due associated with those returns if the due date is on or after March 19 but before July 31 of this year. The extension does not apply to estimated tax payments.

Who does the deadline extension apply to?

Iowa residents or other taxpayers doing business in Iowa who are required to file the Iowa returns listed above.

How are penalties and interest handled?

No late-filing or underpayment penalties shall be due for qualifying taxpayers who comply with the extended filing and payment deadlines in this order. Interest on unpaid taxes covered by this order shall be due beginning Aug. 1.

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