Iowa Department of Revenue outlines 2025 electronic filing rules, deadlines and penalties for W‑2s and 1099s

DES MOINES — Brett Park of the Iowa Department of Revenue walked payroll filers and tax professionals through the department’s electronic filing requirements for tax year 2025 W‑2 and 1099 submissions during an IASource Link webinar.

Park said Iowa requires W‑2s and 1099s that show Iowa tax withholding to be filed electronically through GovConnectIowa and that, because Feb. 15, 2026 falls on a Sunday and the following Monday is a holiday, the practical filing due date is Feb. 17, 2026. "They must be submitted electronically," Park said, urging filers to account for Iowa Code timing rules when planning submissions.

Why it matters: the department uses the data from those reports to speed individual return processing and combat fraud, and late or incorrect filings can trigger civil penalties. Park highlighted a civil penalty established in recent legislation as a $500 civil penalty to each payer for each occurrence and gave an example of a payer facing $5,000 for 10 affected employees.

Key changes and exceptions for 2025

Park said two newly introduced federal forms — the 1099‑DA (for…