Iowa extends payment, filing deadlines in wake of federal extension

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Following the federal government’s 90-day extension of the tax payment deadline, the Iowa Department of Revenue has released its own series of extensions for filing and paying taxes. The order was signed March 19 by Director of Revenue Kraig Paulsen.

Filing and payment deadlines for income, franchise, and moneys and credits taxes with a due date on or after March 19, 2020, and before July 31, 2020, have been extended to July 31, 2020. This does not include an extension of time to file estimated tax payments (Form IA 1040ES) due April 30 and June 30.

According to the Iowa Department of Revenue, this includes:

  • 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

This means individual and corporate tax return filing and payments normally due April 15 are now due July 31 (the federal extension is only for tax payments, not tax filing). However, interest will be due beginning Aug. 1, 2020, on unpaid taxes covered by this order (this differs from the federal extension). Late-filing and underpayment penalties are waived as long as the taxpayer complies with the updated deadlines.

Additionally, Iowa residents or other taxpayers doing business in Iowa who remit income tax withholding on a semi-monthly basis have an extension from March 25 to April 10, 2020, to make income tax withholding deposits. There will be no late-filing or underpayment penalties, but interest will be due beginning April 11, 2020.

Honkamp Krueger is monitoring these changes and updates will be made available as they occur. Contact your account manager with questions regarding your federal or state income tax filings.