The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. Currently, this includes the entire state of Louisiana and taxpayers in other Ida-impacted localities designated by FEMA. These other localities in neighboring states will automatically receive this relief.
Please refer to the current list of eligible localities reported on the IRS disaster relief page.
This tax relief postpones various filing and payment deadlines that occurred starting on August 26th. Individuals and businesses will have until January 3rd to file returns and pay taxes originally due during this period. Those who had a valid extension to file their 2020 return by October 15th now have until January 3rd.
However, because tax payments related to these 2020 returns were due on May 17, 2021, those payments are ineligible for relief.
The January deadline also applies to quarterly estimated income tax payments due on September 15th and the quarterly payroll and excise tax returns normally due on November 1st. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on November 15th.
Businesses with valid extensions to file also have the additional time including, among others, calendar-year corporations whose 2020 extensions expire on October 15th.
Penalties on payroll and excise tax deposits due on or after August 26th and before September 10th will be abated if the deposits are made by September 10th.
The IRS will automatically provide filing and penalty relief to any taxpayer with an IRS address of record in the disaster area. 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.
Taxpayers qualifying for relief who live outside the disaster area should call the IRS at (866) 562-5227. This includes relief workers affiliated with a recognized government or philanthropic organization.
If you need assistance or have any questions on the information in this article, please call your CironeFriedberg professional. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Stamford) or email us at firstname.lastname@example.org.