The IRS has extended the deadline for filing certain individual and corporate tax returns and making certain tax payments to April 18, 2023 for those who were impacted by the severe winter storm that began on December 23, 2022.
Residents and business owners in Erie and Genesee counties can apply for tax relief after the recent severe winter storm because of a disaster declaration issued by the Federal Emergency Management Agency.
As a result of the designation, taxpayers who live or have a company in the disaster region can request an extension on certain tax filing and payment dates from the Internal Revenue Service. As an example, you have until April 18, 2023 to meet specific filing requirements whose original due dates were either on or after December 23, 2022.
Both quarterly payroll and excise tax returns, which are typically due on January 31, 2023, and quarterly anticipated tax payments, generally due on January 17, 2023, must be submitted by April 18, 2023.
Payments of payroll and excise taxes that were originally due on or after December 23, 2022, but were not received by January 9, 2023, will not incur penalties.
Taxpayers who have received notices of late filing or late payment penalties from the IRS and whose original or extended file, payment, or deposit due date falls within the postponement period may contact the IRS using the phone number provided on the notification to have the penalty waived.
Taxpayers in an affected area are flagged by the IRS for automatic filing and payment extensions. Taxpayers who were impacted but who do not live or operate a company in a designated disaster area can call the IRS disaster hotline at 866-562-5227 to apply for tax relief.
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Covered Disaster Area
For purposes of Treas. Reg. 301.7508A-1(d)(2), the aforementioned areas qualify as disaster zones, making them eligible for the assistance provided below.
Affected Taxpayers
Individuals with a primary residence in the covered disaster area and businesses (including tax-exempt organisations) with a principal place of business in the covered disaster area are considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes, and perform other time-sensitive acts pursuant to Treas. Reg. 301.7508A-1(d)(1).
Even if you aren’t located in the affected area, you may still qualify for relief if you have records in the affected area that are required to file by the deadlines in Treas. Reg. 301.7508A-1(c).
Anyone who was killed or injured as a result of the disaster while visiting the covered disaster region, including relief workers affiliated with a recognised government or charitable organisation, is also eligible for assistance.
Most tax returns (including individual, corporate, estate and trust income tax returns; partnership, S corporation, and trust returns; estate, gift, and generation skipping transfer tax returns; annual information returns of tax-exempt organisations; and employment and certain excise tax returns) with an original or extended due date occurring on or after January 1, 2019 have been extended by the IRS until April 18, 2023 under section 7508A.
If an affected taxpayer’s estimated income tax payment that was due on or after December 23, 2022, and was originally due before April 18, 2023, is postponed until April 18, 2023, the taxpayer will not be subject to penalties for failure to pay estimated tax instalments as long as the payment is made on or before April 18, 2023.
Other time-sensitive acts indicated 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 done on or after Dec. 23, 2022, and before April 18, 2023, are granted additional time to submit through April 18, 2023.
As per section 8 of Rev. Proc. 2018-58, the filing deadline for Form 5500 series returns that was originally set for a date on or after December 23, 2022, but is now delayed until April 18, 2023, is extended until April 18, 2023.
Certain taxpayers who are not otherwise impacted taxpayers are also eligible for the like-kind exchange relief stated in section 17 of Rev. Proc. 2018-58, which may include activities required to be undertaken before or after the aforementioned time frame.
The extension of time to file and pay does not apply to Forms 1042-S, 3921, 3922, 8027, or employment and excise tax payments unless the act is specifically included in Rev. Proc. 2018-58. This includes the W-2, 1094, 1095, 1097, and 1099 series of information reports. However, if tax deposits were made by January 9, 2023, fines would be waived for payments that were due on or after December 23, 2022.
Casualty Losses
Casualty losses sustained as a result of a federally declared catastrophe can be deducted from either the year in which the disaster happened or the previous year’s federal income tax return by affected taxpayers. In order to learn more, please refer to Publication 547. Personal property losses not reimbursed by insurance or other sources are deductible for individuals.
Refer to the guidelines included on Form 4684, Casualties and Thefts, for additional information. In strong characters at the top of the form, affected taxpayers should write “New York, Severe Winter Storm” to indicate that they are claiming a loss due to the disaster. Remember to mention the FEMA disaster declaration number FEMA-3590-EM on any and all returns. Instructions can be found in Publication 547.
Other Relief
For affected taxpayers, the IRS will not charge the normal cost when a copy of a previously filed tax return is requested. Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as applicable, should have the Disaster Designation “New York, Severe Winter Storm” written in strong letters at the top before being submitted to the IRS.
If the IRS contacts a catastrophe-affected taxpayer about a collection or examination problem, the taxpayer should describe the impact of the event on their situation. The Internal Revenue Service (IRS) has downloadable documents and forms available on their official website.
