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

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

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

Casualty Losses:  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: http://www.flood2008.iowa.gov/