On May 8, 2019, IRS added Louisa County to the list of Iowa counties eligible for this relief. These eight counties now include Fremont, Harrison, Mills, Monona, Woodbury, Louisa, Shelby and Pottawattamie. IDOR has concurred this relief.
On March 25, 2019, IRS announced that taxpayers who reside or have a business in Fremont, Harrison, Mills, Monona and Woodbury counties in Iowa have until July 31, 2019, to file most 2018 income tax returns and to make quarterly estimated payments. The relief was issued because the President declared that a major federal disaster occurred in more than half of the State of Iowa, and that affected individuals in the five listed counties were eligible for individual disater relief funding. On April 16, 2019, IRS updated its prior announcement to include Pottawatamie and Shelby Counties as well.
Under section 7508A, the IRS gives affected taxpayers until July 31, 2019, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after March 12, 2019 and before July 31, 2019.
Affected taxpayers that have an estimated income tax payment originally due on or after March 12, 2019 and before July 31, 2019, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before July 31, 2019. The IRS also gives affected taxpayers until July 31, 2019 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (Dec. 10, 2018), that are due to be performed on or after March 12, 2019 and before July 31, 2019.
This relief also includes the filing of Form 5500 series returns, (that were required to be filed on or after March 12, 2019 and before July 31, 2019, in the manner described in section 8 of Rev. Proc. 2018-58. The relief described in section 17 of Rev. Proc. 2018-58, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.
Unless an act is specifically listed in Rev. Proc. 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098, or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits. However, penalties on deposits due on or after March 12, 2019 and before March 27, 2019, will be abated as long as the tax deposits were made by March 27, 2019.
If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.
On April 2, The Iowa Department of Revenue announced that it would grant a simlar extension to Iowans whose primary resident or business is in the five counties of Fremont, Harrison, Mills, Monona, and Woodbury. These taxpayers will also have until July 31, 2019, to file their individual, corporation, estate and trust, partnership, and S corporation returns with an original or extended due date on or after March 12, 2019, and on or before July 31, 2019. On April 18, 2019, IDOR also added Pottawattamie and Shelby to the list of impacted counties.
The extension requires no action by residents and businesses in these seven counties. The extension includes filing of quarterly withholding tax returns but does not apply to withholding tax payment deposits.
CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.