The United States’ Internal Revenue Service on Tuesday announced that victims of Hurricane Ida that began on August 26 now have until January 3, 2022, to file various individual and business tax returns and make tax payments.
The IRS, stated on its website that it was offering this relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance.
According to the revenue agency, currently the areas include the entire state of Louisiana, but taxpayers in Ida-impacted localities designated by FEMA in neighbouring states will automatically receive the same filing and payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.
Commenting on the relief measure, IRS Commissioner, Chuck Rettig, said: “During this difficult time, the IRS stands ready to help victims of Hurricane Ida.
“We want people affected by this devastating hurricane focused on their safety and recovery for themselves and their families. To provide assistance now and in the weeks ahead, we have a variety of different types of relief available to help people and businesses affected by this disaster.”
The IRS further clarified that the tax relief postponed various tax filing and payment deadlines that occurred starting on August 26, 2021, adding that as a result, affected individuals and businesses will have until January 3, 2022, to file returns and pay any taxes that were originally due during this period.
The Service further expatiated: “This means individuals who had a valid extension to file their 2020 return due to run out on October 15, 2021, will now have until January 3, 2022, to file. The IRS noted, however, that because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.
“The January 3, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2021, and the quarterly payroll and excise tax returns normally due on November 1, 2021. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on November 15, 2021. Businesses with extensions also have the additional time including, among others, calendar-year corporations whose 2020 extensions run out on October 15, 2021.
“In addition, penalties on payroll and excise tax deposits due on or after August 26 and before September 10, will be abated as long as the deposits are made by September 10, 2021.
“The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time.
“The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated”, it maintained.
In addition, the revenue service stated that it would 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.
The revenue agency also advised taxpayers qualifying for relief who live outside the disaster area to contact it at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
This is even as it stated that individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year), or the return for the prior year (2020). Be sure to write the FEMA declaration number – 4611 − for Hurricane Ida in Louisiana on any return claiming a loss. See Publication 547 for details.
The IRS added that the tax relief was part of a coordinated federal response to the damage caused by Hurricane Ida and is based on local damage assessments by FEMA and urged taxpayers seeking for information on disaster recovery to visit DisasterAssistance.gov
