Iberville storm, flood victims granted tax deadline extension
Victims of severe storms and flooding that began May 17 in Iberville and four other parishes now have until August 16 to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced last week.
Following the recent disaster declaration issued by the Federal Emergency Management Agency, the IRS announced that affected taxpayers in certain areas will receive tax relief.
Individuals and households affected by severe storms and flooding that reside or have a business in Ascension, Calcasieu, East Baton Rouge, Iberville and Lafayette parishes qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area.
For instance, certain deadlines falling on or after May 17 and before Aug. 16 are postponed through Aug. 16. This includes the deadline, previously postponed until June 15, for filing 2020 individual income tax returns and paying any tax due. Taxpayers also have until August 16 to make 2020 IRA contributions. The deadline remains June 15 for the rest of Louisiana.
The Aug. 16 deadline applies to the second quarter payment normally due on June 15. Also, penalties on deposits due on or after May 17 and before June 1 will be abated as long as the tax deposits were made by June 1.
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 that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty. For information on services currently available, visit the IRS operations and services page at IRS.gov/coronavirus.
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief.
Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.
Under section 7508A, the IRS gives affected taxpayers until August 16,2021 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after May 17, 2021 and before August 16, 2021.
Affected taxpayers that have an estimated income tax payment originally due on or after May 17 and before Aug. 16 are postponed through Aug. 16 and will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before August 16.
The IRS also gives affected taxpayers until August 16, 2021 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (Dec. 10, 2018), that are due to be performed on or after May 17 and before Aug. 16 are postponed through Aug. 16.
This relief also includes the filing of Form 5500 series returns that were required to be filed on or after May 17 and before Aug. 16 are postponed through Aug. 16 in the manner described in section 8 of Rev. Proc. 2018-58. The relief described in section 17 of Rev. Proc. 2018-58, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.
Unless an act is specifically listed in Rev. Proc. 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits. However, penalties on deposits due on or after May 17 and before June 1 will be abated as long as the tax deposits were made by June 1.