A Reminder of Iowa Tax Return Deadlines

As October comes to an end, it may be helpful to review the Iowa Department of Revenue’s tax filing deadlines during this crazy year. A recent news release from IDOR details this information.

Iowa Did Not Join with IRS in Offering Derecho-Related Delays

As a result of the August 10, 2020, derecho, the Internal Revenue Service extended until December 15, 2020, certain tax-filing and tax-payment deadlines falling on or after August 10, 2020, and before December 15, 2020. This federal deadline relief applies to 12 Iowa counties designated as federal disaster areas. The Iowa Department of Revenue has not followed suit to extend deadlines for returns and other forms with an original due date during this period. Iowa individual, fiduciary, partnership, S corporation, and C corporation income tax returns, and franchise tax returns must be filed on or before the last day of the fourth month following the close of the tax year.

What Has Changed in Iowa

Normally, for calendar year filers, the due date is April 30. Any taxpayer who has paid 90% or more of its correct tax on or before the due date of its return automatically has an additional six months in which to file its return and pay any additional tax due with no penalty, although interest continues to accrue from the due date. The automatic six-month extension also applies to filers who have a zero balance due. Under normal circumstances this extended filing deadline falls on October 31 for calendar year filers (this year the deadline would have fallen on November 2, 2020).

Order 2020-01 signed by the Director on March 19, 2020, changed the deadline for filing certain Iowa income tax returns with a due date on or after March 19, 2020, and before July 31, 2020, to July 31, 2020. Because of this order, for calendar year filers, the due date to file a 2019 Iowa tax return was extended from April 30, 2020, to July 31, 2020. Under this guidance, tax year 2019 calendar year filers who qualify for an automatic six-month extension (normally October 31, 2020, this year it would have been November 2 ,2020) will have until January 31, 2021, to file their 2019 Iowa income and franchise tax returns. Remember, this only applies to calendar year filers who paid 90% or more of their correct tax on or before July 31, 2020.