The Iowa Department of Revenue (IDR) has determined it will grant an extension to certain taxpayers to file and pay 2018 Iowa individual income tax returns without underpayment of estimated tax penalty. Taxpayers who earn at least 2/3 of their income from farming or commercial fishing will have until April 30 to file and pay their 2018 returns.
The Iowa Code and administrative rules allow the Director of Revenue to provide further time for filing returns if good cause exists and to waive penalties for underpayments of estimated tax if the underpayment was due to unusual circumstances and imposition would be against equity and good conscience. On February 28, the Internal Revenue Service (IRS) issued notice 2019-17 which provides an extension through April 15, for farmers and fishermen to make estimated payments before being subject to estimated tax penalties. The Director finds that this extension and waiver by the IRS is an unusual circumstance warranting a similar extension and waiver for Iowa income tax purposes.