In late March, we wrote an open letter to state tax administrators requesting that they take steps to relieve undue tax administration burdens in the wake of the COVID-19 situation. We gave five suggestions, including postponing deadlines for tax filing and payment, waiving requirements to use hard-copy documents or checks, suspending accrual of interest on assessments during mandatory closures, directing revenue agencies to resolve outstanding controversies, and disregarding remote work for tax purposes.
Kraig Paulsen, Director of Iowa’s Department of Revenue, quickly responded, clarifying actions they have already taken and are now taking:
- Extending filing and payment deadlines for income, franchise, and moneys and credits taxes to July 31, 2020
- Suspending imposition of penalty and interest for property tax payments through April 30
- Creating an application for taxpayers to request deferral of sales tax and income tax withholding filings and payments, without accruing interest
- Suspending in-person notarization requirements and accepting electronic signatures and submissions via regular mail
- Working through audits and appeals “taking business circumstances into consideration”
Read the full letter here.