Although a number of tax filing deadlines were recently extended by Governor Reynolds and the Iowa Department of Revenue, not all tax filing deadlines have been extended. The Department is reminding taxpayers that a number of important tax deadlines are approaching soon and taxpayers should meet those deadlines to avoid interest, penalties, or loss of other tax benefits. Unless a deadline has specifically been extended, the regular deadline still applies. This is not necessarily a comprehensive list of upcoming tax deadlines. These important tax deadlines include:
- Estimated Income Tax Payments — The Department has not extended the due date for estimated income tax payments. The first quarter installment of tax year 2020 estimated income tax for taxpayers filing on a calendar year basis is due April 30, 2020. Additional underpayment penalty relief related to certain 2020 estimated income taxes was recently granted in Order 2020-03. Information on estimated tax payments and this additional underpayment penalty relief can be found under Frequently Asked Questions for Estimated (Income Tax) Payments at tax.iowa.gov/COVID-19.
- Solar Energy System Tax Credit and Geothermal Heat Pump Tax Credit Applications — Taxpayers who installed solar or geothermal energy property in calendar year 2019 in Iowa that qualifies for the Iowa solar energy system tax credit or the Iowa geothermal heat pump tax credit must submit a complete application no later than May 1, 2020, in order to be eligible to receive a tax credit. Applications for both tax credits are submitted online at taxcredit.iowa.gov.
- Sales Tax Returns and Payments — Upcoming sales tax returns and payments are due as normal unless they have been deferred under the Iowa Small Business Relief Program. Applications for deferral under that program are still being accepted through April 30, 2020. Information about that program and the application can be found at tax.iowa.gov/COVID-19. View information about non-deferred filing frequencies and return due dates.
- Income Withholding Returns and Payments — Upcoming income withholding returns and payments are due as normal unless they have been deferred under the Iowa Small Business Relief Program. Applications for deferral under that program are still being accepted through April 30, 2020. Information about that program and the application can be found at tax.iowa.gov/COVID-19. View information about non-deferred filing frequencies and return due dates.
Recent Tax Deadline Extensions
Several important tax deadlines were recently extended by Governor Reynolds and the Iowa Department of Revenue. This is not necessarily a comprehensive list of recent extensions. These recent extensions include:
- Income/Franchise/Moneys & Credits Tax Returns and Payments — The Director has issued Order 2020-01 which extends the deadline for filing Iowa Income Tax Returns, Iowa Franchise Tax Returns, and Credit Union Moneys and Credits Tax Confidential Reports with a due date on or after March 19, 2020, and before July 31, 2020, to a new due date of July 31, 2020. Additional information on income tax returns can be found under Frequently Asked Questions for Income Tax at tax.iowa.gov/COVID-19.
- Property Tax: Board of Review Protest Period Extended — Any property owner or aggrieved taxpayer who is dissatisfied with the owner’s or taxpayer’s assessment may file a protest against such assessment with the local board of review on or after April 2, to and including April 30, of the year of the assessment. In light of the COVID-19 pandemic, the Director has issued an Order 2020-02 to extend and include the time for filing a protest to the period from May 25, 2020, to June 5, 2020. This Order also authorizes Boards of Review in each county to remain in session until June 15, 2020. Protests may be filed using the Petition to Local Board of Review form. A taxpayer may contact their local assessor's office for information on how to file a protest.
- First-Time Homebuyer Savings Accounts — Eligible taxpayers who opened an Iowa first-time homebuyer savings account in calendar year 2019 normally must complete and file an Account Holder and Designated Beneficiary Form 41-162, no later than April 30, 2020, in order for the account to qualify as a first-time homebuyer savings account. However, on April 24, Governor Reynolds issued a proclamation extending the deadline for filing these forms for taxpayers who opened an account in 2019 to July 31, 2020. Additional information on account owner responsibilities related to first-time homebuyer savings accounts can be found at tax.iowa.gov/first-time-homebuyers-savings-account.
- Iowa Educational Savings (529) Plan Contributions — Under normal circumstances taxpayers could elect to deduct qualifying contributions made to an Iowa Educational Savings (529) Plan between January 1, 2020, and April 30, 2020 (up to the contribution limit), on their 2019 Iowa income tax returns, rather than their 2020 returns. On April 24, 2020, Governor Reynolds issued a public health proclamation which, in part, extended the deadline to make such contributions and still deduct them on a 2019 return from April 30, 2020, to July 31, 2020.
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