The IRS is offering tax relief to any area designated by the Federal Emergency Management Agency (FEMA), as qualifying for individual assistance. Currently, this only includes parts of North Carolina, but taxpayers in additional localities (and states) may be added to the disaster area later and will automatically receive the same filing and payment relief. Taxpayers may call the office or visit the disaster relief page on the IRS website to check the current list of eligible localities.
The tax relief postpones various tax filing and payment deadlines that occurred starting on September 7, 2018, in North Carolina. Businesses and individual taxpayers affected by Hurricane Florence in North Carolina and elsewhere have until January 31, 2019, to file certain individual and business tax returns and make certain tax payments that were originally due during this period. These tax payments include quarterly estimated income tax payments due on September 17, 2018, and the quarterly payroll and excise tax returns that are normally due on September 30, 2018.
Taxpayers who had a valid extension to file their 2017 return due to run out on October 15, 2018, will also have more time to file. Businesses with extensions also qualify for the additional time including those who were expected to file calendar-year partnerships (i.e., those whose 2017 extensions run out on September 17, 2018). Penalties on payroll and excise tax deposits due on or after September 7, 2018, and before September 24, 2018, will also be abated as long as the deposits are made by September. 24, 2018.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Thus, taxpayers need not contact the IRS 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.
Tax relief is part of a coordinated federal response to the damage caused by severe storms and flooding and is based on local damage assessments by FEMA. If you have any questions or need assistance, don’t hesitate to call.