On Sept. 6, 2023, the Internal Revenue Service (IRS) issued an update to notice IR-2023-159, which announced tax relief for individuals and businesses affected by Hurricane Idalia in Florida and South Carolina. The relief includes an extension of the deadline to file income tax returns and pay estimated taxes. The Federal Emergency Management Agency also expanded the list of counties covered in the disaster declaration to include more areas in parts of the state of Georgia, meaning taxpayers who reside or do business in those counties will also be covered by the filing relief.
Who is eligible for the relief?
The relief is available to taxpayers who reside or do business in the following counties:
- Florida: Alachua, Baker, Bay, Bradford, Brevard, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Hardee, Hernando, Hillsborough, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Nassau, Orange, Osceola, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, Sumter, Suwannee, Taylor, Union, Volusia, Wakulla and any other localities designated by FEMA.
- South Carolina: All 46 counties.
- Georgia: Appling, Atkinson, Bacon, Berrien, Brantley, Brooks, Bulloch, Camden, Candler, Charlton, Clinch, Coffee, Colquitt, Cook, Echols, Emanuel, Glynn, Jeff Davis, Jenkins, Lanier, Lowndes, Pierce, Screven, Tattnall, Thomas, Tift, Ware and Wayne counties.
The relief also applies to taxpayers who do not reside or do business in the affected areas, but whose tax records necessary to meet a deadline listed in the IRS notice are in the covered disaster area.
What kind of relief is available?
The IRS has extended the following deadlines for taxpayers affected by Hurricane Idalia:
- Deadline to file income tax returns: Taxpayers who have a valid extension to file their 2022 income tax return due to run out on Oct. 16, 2023, now have until Feb. 15, 2024, to file their return without late-filing penalties, including individual, corporate, S-corporation and partnership tax returns, as well as tax-exempt organizations with an extended deadline of Nov. 15, 2023. Partnerships and S-corporations whose extensions were to run out on Sept. 15, 2023 have the extension until Feb. 15, 2024 as well.
Deadlines to pay estimated taxes and quarterly payroll and excise taxes: Taxpayers who have estimated tax payments due on Sept. 15, 2023, and Jan. 31, 2024, may extend the payment date on those estimates until Feb. 15, 2024. Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, 2024, are also due on Feb. 15, 2024.
What should you do if you are eligible for the relief?
If you are eligible for the Hurricane Idalia tax filing postponement relief, you do not need to contact the IRS for request. The IRS will automatically provide the relief to taxpayers with an IRS address of record located in the affected areas. However, you should contact your tax advisor immediately to determine how the relief impacts your tax situation and whether you fit into the following categories:
- If you had a valid extension to file your 2022 income tax return due to run out on Oct. 16, 2023, you now have until Feb. 15, 2024, to file your return without late-filing penalties.
- If you have estimated tax payments due on Sept. 15, 2023, and Jan. 31, 2024, you may extend the payment date on those estimates until Feb. 15, 2024.
- If you have quarterly payroll and excise tax returns due on Oct. 31, 2023, and Jan. 31, 2024, those payments are now due on Feb. 15, 2024.
For questions or more information about how the filing relief impacts your tax situation, contact your Windham Brannon tax advisor, or reach out to Tim Clancy.
