The IRS has announced that Hurricane Ian victims now have until February 15th, 2023 to file federal individual and/or business tax returns and payments. Any area designated by the Federal Emergency Management Agency (FEMA) is eligible for this tax relief. You can check the list of eligible locations here.
What does this mean?
This relief delays the deadlines for returns and payments that were originally due on or after September 23rd, 2022. Now, eligible individuals and businesses will be able to file returns and pay taxes until February 15th, 2023. Additionally, individuals who filed for an extension until October 17th, 2022 will now have until February 15th, 2023 to file their returns, but payments related to the 2021 returns are not eligible for this relief because they were due on April 18th, 2022.
What does this mean for my organization?
Nonprofit organizations, charities, and other tax-exempt organizations in the affected area are also eligible for the extended deadline, including for 2021 calendar-year returns with extensions due on November 15th, 2022.
The February 15th deadline also applies to quarterly estimated income tax payments originally due on January 17th, 2023 as well as quarterly payroll and excise tax returns originally due on October 31st, 2022, and January 31st, 2021.
Further, penalties on payroll and excise tax deposits due on or after September 23rd, 2022 and before October 10th, 2022 will be reduced as long as they are paid by October 10th. You can find more information on returns on actions affected by this mandate here.
How do I take advantage of this?
Any taxpayer with an IRS address in the disaster area will automatically be provided with filing and penalty relief. You should only have to contact the IRS if you are incorrectly charged a late filing or payment penalty for a return originally due within the postponement period.
If you live outside of the disaster area defined by FEMA but your records are inaccessible due to the storm, the IRS will offer assistance. Taxpayers who qualify for relief but live outside the disaster area, including workers assisting relief activities, should call the IRS at (866) 562-5227.
If you or your business suffered uninsured or unreimbursed disaster-related losses, you can claim them on the return for the year the loss occurred or the return for the prior year. You can read more about this here.
Why is this relief offered?
This tax extension is being offered as part of the federal response to the damage caused by Hurricane Ian. It is based on damage assessments by FEMA.
Hurricane Ian, originally a Category 4 hurricane, first hit Florida in the west coast on September 28th, 2022. Ian became the 5th-strongest hurricane to reach land in the contiguous U.S.
Ian caused significant damage to Southwest Florida, including extreme flooding, winds, and rainfall. Millions were left without power or water, and the storm has caused 85 confirmed casualties as of October 3rd.
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