March 24, 2022

The Director of the Iowa Department of Revenue issued Order 2022-01 on March 22, 2022, granting an extension to certain taxpayers to file and pay 2021 Iowa individual income tax returns without incurring a penalty for underpayment of estimated tax. Taxpayers who earn at least 2/3 of their income from farming or commercial fishing will have until May 2, 2022, to file and pay their 2021 Iowa income tax returns without incurring a penalty for underpayment of estimated tax.

The Iowa Code and administrative rules allow the Director to waive penalties for underpayment of estimated tax if the underpayment was due to unusual circumstances and imposition would be against equity and good conscience. On March 15, 2022, the Internal Revenue Service (IRS) issued Notice 2022-13 which provides an extension through April 18 or 19, for farmers and fishers 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.