Iowa Changes Their Policy on Filing Frequency

Will you be paying more frequently or less frequently in Iowa?

Iowa just did away with quarterly sales tax filings so now you will either be a monthly or annual filer. The determining factor is whether you have collected more or less than $1200 in sales tax during the previous year. If more, then you will be monthly. If less, then you will be annual.

No action is required on your part if STM is doing your returns. Iowa will automatically change your frequency and we will do the rest. If you are using another provider, Iowa will still make the change, but you will generally need to let your provider know of the frequency change.

Iowa will mail a letter to all active tax accounts to alert taxpayers of their filing frequencies after these changes are made on July 1, 2022. You can also view your filing frequency and account status by logging into your GovConnectIowa account.

Monthly filers will need to file their July 2022 returns by August 31st of 2022. Annual filers will not need to file another return until January 31, 2023.

These changes are the result of Governor Reynolds signing a bill on June 17, 2022.

The Iowa Department of Revenue (DOR) issued information on these and other changes due to the new statute on June 17. The information includes the following:

  1. Taxpayers must combine all sales tax and use tax returns into a single return;

  2. Taxpayers that collect less than $1,200 in sales tax per year must file returns and pay taxes annually;

  3. Taxpayers that collect $1,200 or more in sales tax per year must file returns and pay taxes monthly;

  4. Taxpayers that collect and remit most excise taxes must file a return and pay those taxes each month; and

  5. Deposit payments are no longer required.

Monthly taxpayers must file returns and pay tax through GovConnectIowa. The DOR further includes due dates for monthly and annual filers.

[Iowa Dep’t of Revenue, Sales & Use Tax Permit, Return Filing, & Payment Changes, 06/17/22]

For additional information see the link below.

https://tax.iowa.gov/sales-and-use-tax-permit-return-filing-and-payment-changes

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