The Iowa Department of Revenue (DOR) recently created a website devoted to its tax-related COVID-19 issues, which can be found here. Of note are the Frequently Asked Questions, in particular, the ability for taxpayers to request a 60-day deferral to pay or deposit certain state taxes (without penalty or interest). Until March 31, the application is with the Iowa Economic Development Authority here. After that, it is anticipated the DOR will begin administering a similar deferral program. Stay tuned and please check back for updates.
The IRS released in a FAQ format that it intends to continually update additional guidance to help address more of the specifics of the IRS previously extending certain return filing and tax payment deadlines.
Earlier this week, the IRS announced it will provide relief to certain individual, trust, and corporate taxpayers due to the COVID-19 outbreak. Individual and trust taxpayers owing up to $1 million of federal income and self-employment tax for tax year 2019 will have until July 15, 2020 to make payments otherwise due April 15, 2020. This relief is also available to corporate taxpayers owing up to $10 million of federal income tax for tax year 2019. Similar relief is available for estimated taxes due April 15, 2020 for tax year 2020. Today Treasury Secretary Steven Mnuchin announced that the IRS will also extend the April 15 tax filing deadline for individuals and businesses until July 15, 2020. More information can be found at the following websites:
- US Department of Treasury – Guidance on Deferring Tax Payments Due to COVID-19 Outbreak
- IRS – Coronavirus Tax Relief
Yesterday the Iowa Department of Revenue followed suit, with some differences in the tax relief issued. The Department extended the April 30, 2020 filing and payment deadline for individual, trust, and corporate taxpayers. The new deadline is July 31, 2020. Notably the Iowa extension does not apply to estimated tax payments for 2020 (so the first quarter estimate remains due April 30, 2020). More information can be found at the following website:
- Iowa Department of Revenue – Extension for Filing and Payment Deadline for Income Tax and Other Tax Types
If you have any questions about navigating your tax obligations during this unprecedented time, please contact Chris Nuss at (515)242-2432 or email@example.com or your BrownWinick attorney or submit a message through our Contact Us form.
For updates on COVID-19 and new guidance provided by BrownWinick attorneys, please visit our COVID-19 Resource Page.