Victims Of Hurricane Ian Qualify For Tax Relief
Hurricane Ian, which saw winds of 155 mph and flooding of up to 12 feet, has displaced an estimated 40,600 people in Florida. In recognition of the many hardships being faced by these residents, the IRS has offered tax relief to anyone with an address of record located in any FEMA designated disaster areas. This means that any individuals or households that live, or have a business in a disaster area in the state, could qualify for tax relief.
General Tax Filing Extension
The tax relief being offered by the IRS postpones a number of tax filing and payment deadlines that occurred on or after September 23rd of 2022. As a result, Hurricane Ian victims in Florida now have until February 15th of next year to file their federal individual and business tax returns. Importantly, this extension doesn’t only apply to filing taxes, but also gives hurricane victims extra time to make tax payments that were due during this period. This extension also applies to individuals who obtained a valid extension to file their 2021 returns, which were due to expire on October 17th of this year. These individuals will now also have until February 15th of next year to file. However, because tax payments related to those 2021 returns were due in April, corresponding tax payments will not qualify for relief.
Quarterly Estimated Income Tax Payments
The February 15th extension also applies to:
- Quarterly estimated income tax payments due on January 17, 2023;
- Quarterly payroll and excise tax returns due on October 31, 2022; and
- Quarterly payroll and excise tax returns due on January 31, 2023.
Businesses with either an original, or an extended due date, also have additional time to file. This includes calendar-year corporations whose 2021 extensions are set to expire on October 17th of this year. Tax-exempt organizations also have more time to file, including those organizations whose extensions to file their calendar-year returns expire on November 15th.
In addition to these filing and payment extensions, penalties on payroll and excise tax deposits that were due on or sometime after September 23 and before October 11th of this year will be abated. However, this is only true for deposits that are made by October 11th of this year.
Automatic Tax Relief
Hurricane Ian-related tax relief is provided automatically to any taxpayer who has an IRS address of record in a disaster area. This means that taxpayers aren’t required to call the IRS to obtain or apply for relief. If, however, an affected taxpayer mistakenly receives a late filing or late payment penalty notice from the agency that has a filing or deposit due date that falls within the postponement period, he or she should call the IRS immediately for penalty abatement. The IRS has also expressed a willingness to work with taxpayers who technically live outside the disaster area, but whose records are located in the affected area. This includes workers who are assisting with the relief activities and who are affiliated with a recognized organization.
An Experienced Florida Tax Attorney
Many Florida residents are suffering extreme physical and financial hardship because of the devastations caused by Hurricane Ian. For help determining whether you qualify for federal tax relief, reach out to dedicated and compassionate CPA, former Special Agent with the FBI, and Florida tax attorney Ronald Cutler, P.A. today.