On Sept. 30, the Internal Revenue Service (IRS) issued late filing penalty relief for Florida taxpayers who have been affected by Hurricane Ian. This filing penalty relief was extended to both North and South Carolina on Oct. 5. The relief is applied automatically to any taxpayer with an address of record inside the area designated by the Federal Emergency Management Agency (FEMA) as a disaster area, which currently encompasses the whole of Florida and the Carolinas.[1] Affected taxpayers not qualifying for automatic relief may procure relief by calling the IRS Disaster Relief Hotline (866-562-5227).
For qualifying taxpayers, the relief affects several filing and payment deadlines, including:
- Individuals with an extension to file their 2021 tax return by Oct. 17, 2022, now have until Feb. 15, 2023. However, since tax payments tied to these 2021 returns were due on April 18, 2022, such payments are not eligible for relief.
- Quarterly estimated income tax payments due on Jan. 17, 2023, and quarterly payroll and excise tax returns due on Oct. 31, 2022, and Jan. 31, 2023, are now due on Feb. 15, 2023.
- Tax-exempt organizations have until Feb. 15, 2023, to file 2021 calendar-year returns and any extensions that would run out on Nov. 15, 2022.
- Penalties on payroll and excise tax deposits that would have been due between Sept. 23 and Oct. 11, 2022, will be abated as long as deposits are made by Oct. 11, 2022.
Windham Brannon will continue to monitor how disaster relief impacts tax situations at the federal, state and local levels. For more information, please contact your Windham Brannon advisor or reach out to Tim Clancy.
[1] A current list of these locations may be found on the IRS’s disaster relief page.
