September 2, 2020
Iowa extends withholding tax deadline for certain businesses and cities
The Iowa Department of Revenue announced that as a result of emergency order 2020-4 providing flexibility for certain businesses disrupted by COVID-19, it is extending the due date for the payment of individual income tax withholding and sales tax.
Any due date for the payment of sales tax or individual income tax withholding that falls on or after August 27, 2020, but before October 1, 2020, is extended until October 31, 2020, for any business that is a bar or other alcohol establishment in Black Hawk, Dallas, Johnson, Linn, Polk, or Story County ordered to close to the general public pursuant to the Governor's August 27, 2020 Proclamation.
The latest information regarding Iowa tax changes is available at tax.iowa.gov/COVID-19.
Taxpayers and tax professionals who need assistance may contact the Department by email (firstname.lastname@example.org) or call the taxpayer services phone line (+1 515 281 3114 or +1 800 367 3388).
As a result of an order signed by Director of Revenue Kraig Paulsen, the Iowa Department of Revenue announced the income tax withholding deposit due date for the period ending March 15, 2020 would be extended from March 25, 2020 to April 10, 2020. It applied to Iowa residents or other taxpayers doing business in Iowa who remit income tax withholding on a semimonthly basis.
No late-filing or underpayment penalties applied for qualifying taxpayers that comply with the extended filing and payment deadlines pursuant to the order. Interest on unpaid taxes covered by this order were due beginning on April 11, 2020. (News release, Iowa Department of Revenue, March 2020.)
Iowa Governor Kim Reynolds announced that state unemployment insurance (SUI) tax payments for the 2020 first quarter, normally due April 30, 2020, were delayed until the end of 2020 second quarter, due July 31, 2020. The tax-payment extension applied only to employers with 50 or fewer employees. Employers were required to notify the Iowa Workforce Development (IWD) of their intent to delay payment by Friday, April 24, 2020 at 4:30 pm CDT.
In addition, to qualify for the SUI tax payment extension, the employer must have been current on all quarterly tax payments before the first quarter of 2020 regardless of whether it is seeking an extension of the 2020 first-quarter tax payment.
All employers were required to electronically file the Quarterly Employers Contribution and Payroll Report by 4:30 on April 24 to avoid a penalty.
No interest or penalties accrued for delayed payments for the eligible group.
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