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IOWA EXTENDS INCOMPLETE FLOOD RELIEF

June 20, 2008

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

The Iowa Department of Revenue has issued its version of flood deadline relief. Iowa's relief is less generous than Federal relief in two important ways.

Iowa will automatically extend deadlines for returns and payments due from May 24 through June 26 to July 28, 2009. This is much less generous than the federal relief, which applies to payments due from May 24 though July 28.

The relief is also less generous in that it does not extend the deadline for the 2nd quarter individual estimated tax payment.

The Iowa release is reproduced in full below.

IOWA TAX DEADLINE EXTENDED FOR TAXPAYERS AFFECTED BY TORNADOES AND FLOODING

Taxpayers affected by tornadoes and flooding will have additional time to file Iowa tax returns and pay Iowa tax.

The extended deadline is July 28, 2008, for returns and payments due after May 24, 2008, and before June 26, 2008.

Affected taxpayers will not be subject to any penalty for failing to file or pay. In addition, interest will not be due on payments made by July 28, 2008.

The taxes that are impacted by this extension are:

* Withholding tax
* Corporation income tax
* Franchise tax
* Sales and use tax, including the automobile rental excise tax and the special equipment tax
* Hotel and motel tax
* Environmental protection charge
* Inheritance tax, including the generation skipping transfer tax and the qualified use inheritance tax
* Motor fuel and special fuel tax
* Cigarette and tobacco tax

If an affected taxpayer receives a penalty or interest notice from the Department, the taxpayer should call the telephone number on the notice.

Taxpayers filing a paper return should make a notation on the return stating, “Taxpayer affected by tornadoes/flooding.”

http://www.state.ia.us/government/drf/news/DisasterRelief.html

Affected taxpayers in presidentially-declared disaster areas may claim disaster-related casualty losses on their federal income tax returns for either 2007 or 2008. The option chosen for federal purposes will be automatically allowed for Iowa tax purposes. Taxpayers may amend their 2007 Iowa income tax returns to take advantage of this provision.

The State of Iowa Flood 2008 Web site maintains the most current lists of state and federal disaster counties.

Tags: Floods.

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