The IRS has issued some forms of tax relief for victims of recent hurricanes and storms. Here are the latest announcements from the IRS. Consult with your tax professional how this impacts you.
HURRICANE IAN RELIEF ADDED FOR THE CAROLINAS
Hurricane Ian victims throughout both North Carolina and South Carolina now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced. This is similar to relief announced last week for Ian victims in Florida.
The IRS is offering relief to any area designated by the Federal Emergency Management Agency. This means that individuals and households that reside or have a business anywhere in both the Carolinas and Florida qualify for tax relief.
The tax relief postpones various tax filing and payment deadlines that occurred starting on September 25, 2022 in South Carolina and September 28 in North Carolina. As a result, affected individuals and businesses will have until February 15, 2023, to file returns and pay any taxes that were originally due during this period.
This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until February 15, 2023, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief.
The February 15, 2023, deadline also applies to quarterly estimated income tax payments due on January 17, 2023, and the quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023. Businesses with an original or extended due date also have the additional time including, among others, calendar-year corporations whose 2021 extensions run out on October 17, 2022. Similarly, tax-exempt organizations also have the additional time, including for 2021 calendar-year returns with extensions due to run out on November 15, 2022. You should discuss your situation with a tax professional.
NON RESIDENTS OF THE CAROLINAS MAY ALSO QUALIFY FOR RELIEF
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
HURRICANE IAN TAX RELIEF FOR FLORIDA
Hurricane Ian victims throughout Florida have until February 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced. Watch for updates.
The IRS is offering relief to any area designated by FEMA. This means that individuals and households that reside or have a business anywhere in the state of Florida qualify for tax relief.
The tax relief postpones various tax filing and payment deadlines that occurred starting on September 23, 2022. As a result, affected individuals and businesses will have until February 15, 2023, to file returns and pay any taxes that were originally due during this period.
This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until February 15, 2023, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief.
The February 15, 2023, deadline also applies to quarterly estimated income tax payments due on January 17, 2023, and the quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023. Businesses with an original or extended due date also have the additional time including, among others, calendar-year corporations whose 2021 extensions run out on October 17, 2022. Similarly, tax-exempt organizations also have the additional time, including for 2021 calendar-year returns with extensions due to run out on November 15, 2022.
In addition, penalties on payroll and excise tax deposits due on or after September 23, 2022, and before October 10, 2022, will be abated as long as the deposits are made by October 10, 2022.
HURRICANE IAN INSURANCE ISSUES
There may be serious insurance issues in Florida because of Hurricane Ian. Florida has an ongoing insurance crisis, with ten major insurance carriers leaving the state in the past year. Many Florida homeowners use a state-run insurance program which may have severe limits and problems covering the damage.
If you have been impacted by Hurricane Ian try to keep comprehensive records of your losses, repair costs, and damage. These may be tax deductible when you file your 2022 tax returns.
While Florida has an insurance crisis this advice about keeping comprehensive records also applies to other states that may suffer damage as Hurricane Ian continues on its path.
HURRICANE FIONA RELIEF
Hurricane Fiona victims in all 78 Puerto Rican municipalities now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today.
The IRS is offering relief to any area designated by FEMA. This means that individuals and households that reside or have a business anywhere in the Commonwealth of Puerto Rico qualify for tax relief.
The tax relief postpones various tax filing and payment deadlines that occurred starting on September 17, 2022. As a result, affected individuals and businesses will have until February 15, 2023, to file returns and pay any taxes that were originally due during this period.
This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until February 15, 2023, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief.
The February 15, 2023, deadline also applies to quarterly estimated income tax payments due on January 17, 2023, and the quarterly payroll and excise tax returns normally due on October 31, 2022 and January 31, 2023. Businesses with an original or extended due date also have the additional time including, among others, calendar-year corporations whose 2021 extensions run out on October 17, 2022. Similarly, tax-exempt organizations also have the additional time, including for 2021 calendar-year returns with extensions due to run out on November 15, 2022.
In addition, penalties on payroll and excise tax deposits due after September 17, 2022 and before October 3, 2022, will be abated as long as the deposits are made by October 3, 2022.
ALASKA STORM RELIEF
Victims of storms and flooding that began on September 15 in parts of Alaska now have until February 15, 2023, to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service announced today.
The IRS is offering relief to any area designated for individual or public assistance by FEMA.
The tax relief postpones various tax filing and payment deadlines that occurred starting on September 15, 2022. As a result, affected individuals and businesses will have until February 15, 2023, to file returns and pay any taxes that were originally due during this period.
TALK TO A TAX PROFESSIONAL, WE OFFER A FREE CONSULTATION
It is always best to talk to a tax professional about any tax issues you might have. We offer a free consultation about your tax issues. Call us with your questions and we can talk to you about your tax debt and various ways to resolve your tax debt. We can discuss the IRS Fresh Start Program and the IRS Offer In Compromise Program. This is a free consultation. We can also look into where your tax refunds are, if you are still waiting for a refund from previous years. The video below explains how easy it is to call us for your free consultation about your tax issues and the Offer In Compromise and the Fresh Start Programs.
Remember, we are standing by to discuss your tax issues and to answer your tax questions. Our tax resolution specialists are ready to discuss the IRS Fresh Start Program and the IRS Offer In Compromise Program and other ways to resolve your tax debt and to ease your tax issues.
Here again is the direct phone number to call our senior tax resolution specialist Tom at our office: 949-359-0810