On March 23, Governor Kim Reynolds announced a new Iowa Small Business Relief Program to support the state’s small businesses impacted by the COVID-19 pandemic. The program offered small business relief grants, administered by the Iowa Economic Development Authority. It also offered businesses a tax deferral of sales and/or withholding taxes due and waiver of penalty and interest, administered by the Iowa Department of Revenue.

The Iowa Department of Revenue has heard from taxpayers and tax practitioners regarding the information needed in correctly determining whether certain enumerated temporary labor services qualify as tax-exempt services used in processing in accordance with Iowa Code section 423.3(50) and Iowa Administrative Code rule 701-230.3.

The Iowa Department of Revenue today extended the filing and payment deadline for several state tax types, including income tax. The changes, prompted by COVID-19, are designed to provide flexibility to hard-working Iowans whose lives have been disrupted. The changes are a result of an order signed earlier today by Director of Revenue Kraig Paulsen.

The Iowa Department of Revenue today extended one income tax withholding deposit due date for certain taxpayers. The change, prompted by COVID-19, is designed to provide flexibility to disrupted businesses. The extension is a result of an order signed earlier today by Director of Revenue Kraig Paulsen.

In December of 2019, President Trump signed the Taxpayer Certainty and Disaster Tax Relief Act of 2019 into law. This Act extends a number of expired federal tax provisions, many retroactively to tax years 2018 and 2019. Iowa has not conformed with any of these federal tax changes to the extent they apply to tax years beginning prior to January 1, 2020.

In 2018, the Iowa legislature enacted Senate File 2417, a state tax reform bill that includes extensive changes to the state’s tax structure. The Department has released guidance to explain the following tax change: