Derecho Tax Relief

The IRS recently issued Notice 2020-190 announcing tax deadline relief for certain Iowans that were victims of the August 10^th derecho. Individuals and businesses that reside in the Benton, Boone, Cedar, Jasper, Linn, Marshall, Polk, Poweshiek, Scott, Story, and Tama counties qualify for this tax relief. However, if any further counties are added to this disaster declaration, they will automatically qualify for the same relief as these eleven counties. This tax deadline relief postpones various filing and payment deadlines starting on August 10, 2020.

Notice 2020-190 provided these specific examples of payment and tax return deadline relief:

• Individuals and businesses that had a valid extension will have until December 15, 2020 to file and pay any taxes that were originally due between August 10^th and December 14^th.
• Quarterly estimated tax payments that were originally due September 15, 2020 are now due December 15, 2020.
• Quarterly payroll and excise tax returns that are normally due October 31, 2020 are now due on December 15, 2020.
• Tax-exempt organizations that are operating on a calendar-year basis and have a valid extension due to run out on November 15, 2020 will also receive the December 15, 2020 filing deadline.
• Penalties on payroll and excise tax deposits due after August 10^th and before August 25^th will be abated if payments were made by August 25^th.

As of now, the State of Iowa has not adjusted due dates for these filing and payment deadlines. Due to this, our team will continue to process tax returns in the effort to meet the normal federal deadlines. Please reach out to your engagement team if you would like to delay filing or payment due to the hardship.