Third Quarter Income Tax Estimate
The Department is reminding taxpayers that Iowa has not extended the due date for estimated income tax payments. The third quarter installment of tax year 2020 estimated income tax for taxpayers filing on a calendar year basis is due September 30, 2020. Any taxpayer who took advantage of the underpayment penalty relief provided in Order 2020-03 must add the outstanding balance of tax due for these installments to the taxpayer’s next installment due on or after July 31, 2020. For many taxpayers, this will increase the required third quarter estimate due September 30, 2020. Failure to pay the increased required installment by the taxpayer’s first due date on or after July 31, 2020, will be considered an underpayment of estimated taxes for the installment. For additional information on the calculation of third quarter estimates, see the Estimated (Income Tax) Payments section on the Department’s COVID-19 page.
Income and Franchise Tax Return Due Date
On September 2, 2020, the Internal Revenue Service extended until December 15, 2020, certain tax-filing and tax-payment deadlines falling between the period of August 10, 2020, and December 15, 2020. Iowa has not extended return deadlines for this period.
Iowa income tax returns, including partnership, S corporation, and C corporation income tax returns, must be filed on or before the last day of the fourth month following the close of the tax year. 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.
Order 2020-01 signed by the Director on March 19, 2020, changed the deadline for filing certain income tax returns with a due date on or after March 19, 2020, and before July 31, 2020, to July 31, 2020. As a result, tax year 2019 calendar year filers who qualify for the automatic six-month extension would have until January 31, 2021, to file their 2019 Iowa income and franchise tax returns.
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