Were you impacted by RI flooding and tornadoes? IRS is offering some tax relief
WASHINGTON – Rhode Islanders and businesses affected by severe storms, flooding and tornadoes that began on Sept. 10, 2023, will have a little longer to file their taxes, thanks to the IRS.
These taxpayers now have until June 17 – instead of April 15 – to file various federal individual and business tax returns and make tax payments, according to a news release from the IRS. Following the disaster declaration issued by the Federal Emergency Management Agency, individuals and households that reside or have a business in Providence County, 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 Sept. 10, 2023, and before June 17, 2024, are granted additional time to file.
As a result, affected individuals and businesses will have until June 17, 2024, to file returns and pay any taxes that were originally due during this period.
Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, Jan. 31, 2024, and April 30, 202The tax relief also applies to quarterly estimated tax payments, normally due on Sept. 15, 2023, Jan. 16, and April 15, 2024. Penalties on payroll and excise tax deposits due on or after Sept. 10, 2023, and before Sept. 25, 2023, will be abated as long as the tax deposits are made by Sept. 25, 2023. The June 17, 2024, deadline also applies to affected businesses:
Calendar-year partnership and S corporation returns normally due on Sept. 15, 2023 and March 15, 2024.
Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.
Calendar-year tax-exempt organization returns normally due on Nov. 15, 2023, and May 15, 2024.
Tax season is upon us: Everything you need to know to file in Rhode Island.
Need an extension beyond June 17?
The IRS urges anyone who needs an additional tax-filing extension, beyond June 17, for their 2023 federal income tax return to request it electronically by April 15. Though a disaster-area taxpayer qualifies to request an extension between April 15, and June 17, a request filed during this period can only be submitted on paper. Whether requested electronically or on paper, the taxpayer will then have until Oct. 15 to file, though payments are still due on June 17. Visit IRS.gov/Extensions for details.
What to do about penalty notices
If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original 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.
Who qualifies for tax relief?
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.
The IRS also gives affected taxpayers until June 17, 2024, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (December 10, 2018), that are due to be performed on or after Sept. 10, 2023, and before June 17, 2024, are granted additional time to file through June 17, 2024.
Casualty losses
Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year. Taxpayers choosing to claim their losses on their 2023 return have extra time, until Oct. 15, 2025, to make this election. See Publication 547 for details. Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684, Casualties and Thefts and its instructions. Affected taxpayers claiming the disaster loss on their return should put FEMA disaster declaration number, 4753-DR on any return.
Other relief
The IRS will waive the usual fees and requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned FEMA declaration number (4753-DR), in bold letters at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.
Qualified disaster relief payments are generally excluded from gross income. This means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525 for details.
Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.
Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website, IRS.gov.
This article originally appeared on The Providence Journal: FEMA disaster declaration in RI means tax deadline extension for some
