The Iowa Department of Revenue announced that its Small Business Relief Program, that originally ran from March 23, 2020, to April 30, 2020, is extended for a second round from May 1, 2020 through June 30, 2020. (See EY Tax Alert 2020-0951 for information about the first round of the deferral program.)

Businesses that have already submitted an application and were accepted for the program for round 1 will not need to reapply for round 2. New applicants will be notified by mail.

The second round of the Iowa Small Business Relief Tax Deferral program has different terms:

• Only payments are deferred.
• Sales tax and withholding tax returns must be timely filed on or before the due date. If tax returns are not timely filed, you will be disqualified from the program and late-payment and filing penalties will apply.
• Each payment included in the new program is deferred for 30 days. Penalties will apply and interest will begin to accrue if payment is not made by the end of the 30-day deferral period.
• Payments deferred for round 1 for the period including March 20, 2020 and April 30, 2020, are still deferred for 60 days as previously announced.

Information about the program can be found at tax.iowa.gov/COVID-19. The page contains the application, details about eligibility, important dates, and answers to frequently asked questions.

———————————————

———————————————
ATTACHMENT

EY Payroll News Flash