The Department has extended the deadline to make a Pass-Through Entity Tax (PTET) election for tax year 2022 from January 2, 2024 to April 30, 2024. As a result, a tax year 2022 PTET election must be made by the later of the following dates:

  • April 30, 2024, or
  • The due date for filing the 2022 IA 1065 or 2022 IA 1120S, including extensions.

Making a PTET election. PTET elections for tax year 2022 are made by filing the 2022 PTET form on GovConnectIowa.

Penalties and interest. For tax years ending prior to May 11, 2023, an electing pass-through entity will not be subject to penalties or interest on the PTET if it makes its election and payment by the extended PTET election deadline described above. Information about related penalties and interest for tax years ending on or after May 11, 2023 may be found at the Department’s Pass-Through Entity Tax guidance page.

Payment of PTET liability. Any PTET liability reported on a filed 2022 PTET form may be paid on GovConnectIowa through login and pay (requires logon) or through quick pay (logon not required). If you are paying by check, payment vouchers may be printed on GovConnectIowa. PTET payments should be made to the entity’s Partnership or S Corporation account.

PTET credits available to owners. 2022 PTET credits shall not be reported to owners on the 2022 Iowa PTET Credit Schedule (41-188), or claimed by owners on Iowa tax returns, until the electing pass-through entity has paid the balance of its 2022 PTET liability. An owner who claims a 2022 PTET credit before the entity has paid its related PTET liability may receive a credit notice or denial from the Department.

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