Iowa businesses in areas affected by recent flooding will have an extra month this summer to remit withholding, unemployment and sales tax for activity from April 1 to June 30. The floods cut off cash flow for many businesses, and the extension is intended to give them time to secure Small Business Administration or other loans before they have to make tax payments.
More details are in the press release from State Representative Tyler Olson, which is after the jump. Olson is a first-term incumbent in House district 38, which includes parts of Cedar Rapids. He requested the extension after being contacted by a business owner.
FOR IMMEDIATE RELEASE
Wednesday, July 16, 2008
For More Information:
State Rep. Tyler Olson
STATE REP. TYLER OLSON ANNOUNCES EXTENSION OF TAX DEADLINE FOR BUSINESSES IN FLOOD-AFFECTED AREAS
Cedar Rapids--State Representative Tyler Olson announced today the Iowa Department of Revenue is extending the deadline for businesses in flood-affected areas to remit their withholding, unemployment and sales tax. The extension moves the deadline for businesses to remit payment for activity from April 1 to June 30 to August 29, 2008. The previous deadline was July 31, 2008.
"Extending the deadline to make state tax payments for businesses in flood-affected areas gives some flexibility and relief to many Iowans who lost their livelihood," said Olson. "The extension allows businesses to secure SBA or bridge loans before the payments become due and may mean the difference between a business being able to re-open or not."
On Tuesday, Representative Olson requested the Iowa Department of Revenue grant businesses the extension to remit their payments after receiving a phone call from a flood-affected business.
"I appreciate Governor Culver acting quickly to offer some measure of relief to Iowa businesses and look forward to continue working to make sure individuals and businesses have the resources they need to recover and rebuild in Iowa."
State Representative Tyler Olson
P.O. Box 2389
Cedar Rapids, IA 52406-2389