(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 308.2(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. 1. 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.
