Three Key Dates to Remember for Tax Season 2020

Due to the postponement of tax-related due dates as a result of the national emergency created by COVID-19, April 15 had little significance for taxpayers in 2020. What dates are important for taxpayers this year? While not an exclusive list of due dates for all Federal and Iowa taxes, the following are three key dates to keep in mind:

1. April 30. This is the usual date that various Iowa taxes are due for the first quarter of the year, including estimated income taxes, sales and use taxes, and withholding taxes. Unlike the IRS, the Iowa Department of Revenue has not provided a general postponement of 2020 filing dates. However, the Department has provided some relief for 2020 tax filing and payment requirements, including the following:

• Taxpayers may use their 2018 Iowa tax liabilities when computing 2020 estimated tax payments using the “safe harbor” rule based on prior-year taxes.
• Taxpayers impacted by COVID-19 may apply to the Department for a 60-day deferral of sales and/or withholding tax returns and payments, as well as a waiver of penalty and interest. The Department will review the application and notify the taxpayer if the deferral is granted.

2. July 15. This is the postponed due date provided by the IRS for the majority of 2019 and 2020 tax filing and payment requirements that were originally due on or after April 1, 2020, and before July 15, 2020. This includes 2019 Federal income tax returns for individuals, trusts, partnerships, limited liability companies, and corporations. It also includes most other 2019 Federal tax returns, including gift tax, estate tax, generation-skipping tax, exempt organization returns, and others. Finally, Federal taxpayers have until July 15 to make both their first and second quarter 2020 estimated income tax payments.

3. July 31. This is the date that 2019 Iowa income tax returns and payments are due, including returns filed by individuals, trusts, partnerships, limited liability companies, and corporations.

Please contact any member of Nyemaster’s Tax Departments with questions or if we can be of further assistance.