The IRS has recently announced that American residents who were affected by the winter storms will qualify for tax relief. The exact type of relief will vary depending on the region. Optima Tax Relief reviews eligible locations that qualify for tax relief.
Mississippi storm victims are among those who qualify for storm victim tax relief due to the tornadoes and severe storms that took place on March 24 and 25, 2023. Tax relief will automatically be provided to individuals and households that reside or have a business in Carroll, Humphreys, Monroe and Sharkey counties.
Alabama storm victims also qualify for storm victim tax relief due to the tornadoes and severe storms that took place on March 31, 2023. Tax relief will automatically be provided to individuals and households that reside or have a business in Cross, Lonoke and Pulaski counties.
This relief includes an extension of the tax filing deadline from April 18, 2022, to July 31, 2022, for both individuals and businesses. The July 31 deadline also applies to the quarterly estimated tax payments, typically due on April 18 and June 15. This also means that taxes are not due until the extended deadline, and they will not be charged a late penalty or interest for paying after the April deadline. Additionally, victims can continue to make 2022 contributions to IRAs and health savings accounts (HSAs).
The IRS also provided an update for New York winter storm victims who previously received tax relief for storms that took place between December 23, 2022, and December 28, 2022. Individuals and households that live or have a business in Erie, Genesee, Niagara, St. Lawrence and Suffolk counties now have until May 15, 2023, to file federal individual and business tax returns and make tax payments. This includes 2022 individual tax returns due on April 18, as well as several 2022 business returns usually due on March 15 and April 18. Among other things, the deadline applies to IRA and HSA contributions, payroll and excise tax returns, and estimated payments.
Taxpayers who were affected by the winter storms and who are located outside of the disaster areas may still qualify for relief if they have records necessary to meet tax deadlines that are located within the disaster area. The IRS has also announced that it will automatically identify taxpayers who qualify for relief and apply it to their accounts. Taxpayers who receive notices from the IRS that include penalties and interest should contact the agency to have them abated. In addition, affected taxpayers who need additional time to file their tax returns may request an extension by filing Form 4868.
In conclusion, the IRS is providing much-needed tax relief to Mississippi, Alabama, and New York residents who were affected by the winter storms. The extension of the tax filing deadlines gives taxpayers additional time to file their tax returns and make payments without incurring penalties or interest. Taxpayers who were affected by the storms should take advantage of this relief and contact the IRS if they need further assistance.