The state’s top tax official has used her authority to grant a tax extension to businesses and individuals living and working in the Missouri River flood zone. Victoria Daniels, a public information officer in the Iowa Department of Revenue, says it’s unclear how many taxpayers may be late in filing. “We just don’t know,” Daniels says. “But this is an ability that the director has, by law, to grant this extension in the event of a disaster.”
Taxpayers must submit sales and use taxes, plus any withholding for income taxes, on a quarterly basis. But taxpayers living in the six counties that border the Missouri River now have ’til October 31st to file. “Maybe they can’t get to their business location,” Daniels says. “Or their computers are under water and they can’t do what they need to do to acces the eFile & Pay system — something to that effect.”
Taxpayers in Fremont, Harrison, Mills, Monona, Pottawattamie and Woodbury Counties who’ve been hit by flooding can qualify for extension and file their quarterly tax payments by October 31st without penalty or interest. Daniels says her agency also has gotten a number of inquiries from the Dakota Dunes area, where people have temporarily relocated to Iowa because of the flooding there.
“There was some question about, ‘O.K., if I move to Iowa, am I now an Iowa resident and do I now owe Iowa income tax?’ And the guildeline has always been if you have Iowa-source income of $1000 or more, regardless of where you live, you are going to need to file an Iowa return,” Daniels says. “And we do have some guidelines for what we consider permanent residency.” Daniels says most South Dakotans fleeing flooded homes will be considered temporary, not permanent residents of Iowa because they intend to move back to their South Dakota home. The State of South Dakota, by the way, does not have a personal income tax.
(Radio Iowa)