Updated: March 26, 2020
In an effort to curb financial constraints caused by the COVID-19 pandemic, the Internal Revenue Service (IRS) has postponed the filing and payment due dates for Federal income tax returns until July 15, 2020. This extension allows individuals (including married individuals filing jointly) and companies to defer filing of their federal income tax return and payment of federal tax liabilities until July 15, 2020. The previous limitation on the amount of federal tax liability that could be postponed has been removed. Additionally, the IRS has also postponed the due date for Federal estimated income tax payments which were due on April 15, 2020.
The federal filing and payment due dates have automatically been postponed, so taxpayers do not need to do anything to advantage of the extension. Please note that interest and penalties will start to accrue as of the extended due date for payments made after July 15, 2020. Taxpayers will need to file 2019 income tax returns and pay 2019 federal tax liabilities on or before July 15, 2020.
If you are a taxpayer who is expecting a refund, we recommend that you file your taxes as soon as possible. At this point, federal refunds are still expected to be received within 21 days of submitting a return.
The Iowa Department of Revenue (IDOR) has also extended both payment and filing deadlines until July 31, 2020. This extension allows Iowa taxpayers to defer filing the following Iowa tax forms if they have not been filed already:
- IA 1040, Individual Income Tax Return
- IA 1040C, Composite Return
- IA 1041, Fiduciary Return
- IA 1120, Corporate Income Tax Return
- IA 1120F, Franchise Tax Return for Financial Institutions
- IA 1065, Iowa Partnership Return
- IA 1120S, S Corporation Return
- Credit Union Moneys and Credits Tax Confidential Report
Taxpayers who have filed or will file one of the above forms and owe or will owe a tax liability to the state can defer payment until July 31. The IDOR will waive any penalty and interest charges on taxes owed until that date. At this time, there does not appear to be a monetary limit on the amount of tax liabilities that can be deferred. Late payment penalties and interest will begin to accrue on August 1, 2020. Please note, that estimated tax payments due to the IDOR remain due on their normal due dates.
Please contact any of our tax attorneys if you need additional guidance regarding this topic.
* The information provided in this article reflects guidance as of March 26, 2020. Any subsequent government action will need to be considered. Shuttleworth and Ingersoll will continue to closely monitor federal and state tax updates as they are released.
Individual Tax Attorneys Who are Here to Help
Sarah C. Thielen is an associate attorney whose practice focuses on business law, estate planning, and tax law. In 2018, Sarah graduated with her J.D. from the University of Iowa College of Law. Sarah started as a summer associate with Shuttleworth & Ingersoll in 2016, and returned for the summer in 2017. Sarah is an integral member of the business and individual law groups.
Jonathan Landon is an Attorney and Vice President with Shuttleworth and chair of the Business Law Practice Group. Jon advises individuals, businesses, and tax-exempt organizations in: Federal and state tax matters; general business transactions; deferred compensation and employee benefits; and estate and succession planning.
Don Johnson is an Attorney and Senior Vice President at Shuttleworth & Ingersoll, P.L.C. Don has a general practice including but not limited to estate planning and estate administration (including the preparation of wills and trusts, probate and trust administration, and will contests), taxation (including tax return preparation and tax consulting), and business matters (including the formation of corporations and limited liability companies, contract drafting and review, and mergers and acquisitions).
Gary Streit’s practice focuses on estate and business succession planning, qualified plans and employee benefits, taxation, and other general business matters. Gary was president of the firm from 2002 through 2016, and was chair of the board in 2017 and 2018.