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DEADLINE RELIEF FOR IOWA STORM DISASTER AREAS

June 16, 2008

6/20/08: SEE UPDATE BELOW

UPDATE, 7/14/08: FEDS FURTHER EXTEND FLOOD AREA FILING DEADLINE; WILL IOWA FOLLOW SUIT?

The IRS has extended tax deadline relief to additional counties in Iowa as a result of the recent storms and flooding. The relief is available to:

...individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose books, records, or tax professionals’ offices are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area are eligible for relief.

Affected taxpayers can make tax payments and file returns that would otherwise be due between May 25 and July 28, 2008 as late as July 28 without penalty.

The following counties are covered:

Adams, Benton, Black Hawk, Bremer, Buchanan, Butler, Cedar, Cerro Gordo, Delaware, Fayette, Floyd, Hardin, Johnson, Jones, Linn, Louisa, Marion, Muscatine, Page, Polk, Story, Tama, Union and Winneshiek.

The IRS says they will automatically apply the relief to taxpayers in the affected areas who make filings or payments that otherwise would be late.

The IRS will also waive penalties for affected taxpayers for late payment of employment tax deposits due between May 25 and ~~June 28~~ June 8 if the payments are made by June 29, 2008 (~~the IRS release says June 9, which is obviously a typo~~).

UPDATE: After inquiring with the IRS about the original IRS release, which said that employment tax payments made between May 25 and June 28 could be made by June 9, I received the following response (my emphasis):

There is indeed a typo in the sentence you quoted. The sentence you sent us said: 'The IRS, however, will abate penalties for failure to make timely employment and excise deposits, due on or after May 25, 2008, and on or before June 28, 2008, provided the taxpayer made these deposits by June 9, 2008.' You suggested that the last date should read June 29 instead of June 9 to make sense. The correct sentence should have said: 'The IRS, however, will abate penalties for failure to make timely employment and excise deposits, due on or after May 25, 2008, and on or before June 9, 2008, provided the taxpayer made these deposits by June 9, 2008.' That is, it was the date of June 28 in the middle of the sentence that was incorrect, not the mention of June 9 at the end of the sentence, which is in fact the correct date. We have now corrected the text on the Web site.
Again, thank you for pointing out that there was an error in the sentence.

~~An Iowa Department of Revenue representative told us that the department is considering whether it will extend filing deadlines for storm-affected taxpayers.~~

Iowa has also extended limited disaster relief. The Iowa relief includes withholding taxes, but does not include individual estimated taxes. This is a lame and baffling omission.

Link: IRS release on Iowa storm relief.

Tags: Des Moines.downtown.Floods.