The Iowa Department of Revenue will grant extra time to farmers who file a 2007 Iowa individual income tax return that includes Form 4136. The department made that announcement February 26, 2008.
Technical problems have led the IRS to extend the deadline for those eligible farmer federal returns that are filed electronically from March 3, 2008, until March 10, 2008. The Iowa Department of Revenue will also extend the state tax deadline from March 3, 2008, until March 10, 2008, for electronic returns and also paper returns, says Renee Mulvey, a spokeswoman for the department.
Must be postmarked on or before March 10
Normally, eligible farmers must file and pay their 2007 Iowa individual income tax by March 1 (March 3rd in 2008 because March 1 is a Saturday) to avoid penalties for failing to make estimated payments. For eligible farmers who attach Form 4136 to their Form 1040, the return will be considered timely filed with all tax paid if the return is e-filed and accepted or postmarked on or before March 10 and all tax due is paid on or before March 10.
Returns filed by this date will not be assessed an Iowa penalty for failure to make estimated payments for the 2007 tax year. This extension will only apply to farm returns that include the Federal Form 4136, Credit for Federal Tax Paid on Fuels. Returns that do not require Federal Form 4136 must be filed by March 3, 2008. This delay does not affect farmers who are not attaching Form 4136.
The late-December enactment prevented timely changes in tax-preparation software and IRS forms. For that reason, people using tax software should check with their provider for updates that include the revised Form 4136. For more information contact the Iowa Department of Revenue at 515-242-6226.