Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 49 - Estimated Income Tax for Individuals › Rule 701-49.2 - Time for Filing and Payment of Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Time for filing.
a.
General rule.
The date for filing the first estimate tax payment is on
				or before the last day of the fourth month of the tax year. The estimate tax
				form is to be sent to: Estimate Processing, Iowa Department of Revenue, P.O.
				Box 10466, Des Moines, Iowa 50306.
b.
Special rule for farmers and
				fishers.
If the estimated gross income of a taxpayer from farming or
				fishing is at least two-thirds of the estimated gross income from all sources
				for the taxable year, one of the following three methods is available to the
				taxpayer for satisfying the requirement to make estimate tax payments.
(1) Make the first estimate payment on April
				30 and make the other three payments by the dates specified under subrule
				49.2(2).
(2) Make the entire
				estimate payment for the tax year by January 15 of the subsequent tax year and
				file the individual income tax return by April 30 of the subsequent tax
				year
(3) File the individual income
				tax return and pay the tax in full on or before March 1 of the subsequent tax
				year
c.
Amended
				estimate payments.
(1)
General rule.
Whenever a
				taxpayer who is required to make estimate payments has reason to believe that
				the anticipated income tax liability on which the estimate payments are based
				has increased or decreased, any subsequent estimate payments should be amended
				or adjusted accordingly.
(2)
Example
A married couple
				is making joint estimate tax payments on a calendar year basis, anticipating
				taxable income of $8,500, with an estimated tax liability of $300. The
				taxpayers paid the first quarter installment of $75 by the due date of April 30
				of the current year and the second installment of $75 on June 30. On July 15,
				real estate owned jointly by the taxpayers is sold, creating additional taxable
				income for the year of $7,500. The new tax liability for the tax year is $900
				less the estimate payments of $150 already paid for the first and second
				quarters. There is a balance of $750 to be paid in two equal installments of
				$375 each by September 30 of the current year and by January 31 of the
				succeeding year.
(2)
Payment of estimated tax.
a.
General rule.
Estimated tax due for the tax year may be paid
				in full on the date on which the first payment is due or in four equal
				installments. The taxpayer may elect to pay any installment prior to the date
				when the installment is due.
b.
Calendar-year installments.
The first estimate tax payment is
				due by April 30. The other installments shall be paid on or before June 30 and
				September 30 of the current year, and on or before January 31 of the succeeding
				year.
c.
Fiscal-year
				installments.
The installment dates for a taxpayer filing estimate tax
				payments on a fiscal-year basis are:
Installment No. I. The last day of the fourth month of the
				  fiscal year
Installment No. 2. The last day of the sixth month of the
				  fiscal year.
Installment No. 3. The last day of the ninth month of the
				  fiscal year.
Installment No. 4. The last day of the first month of the
				  next fiscal year.
This rule is intended to implement Iowa Code section
				  422.16.