According to the IRS release – FL-2023-06 – the tax relief is provided after a recent disaster declaration issued by the Federal Emergency Management Agency (FEMA), and currently 49 of Florida’s 67 counties qualify. 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. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline below are in the covered disaster area, are also entitled to relief.
Here’s what you need to know.
Filing and payment relief for eligible counties:
– The Feb. 15, 2024, deadline also applies to quarterly estimated tax payments, normally due on Sept. 15, 2023 and Jan. 16, 2024.
– Taxpayers and companies impacted by Idalia will have up until February 15, 2024, to submit their returns and pay any taxes that were originally due during this time span. This includes the 2022 individual income tax returns due on October 16, 2023. The IRS noted, however, that because tax payments related to these 2022 returns were due on April 18, 2023, those payments are not eligible for this relief.
– Businesses with an upcoming filing deadline – including calendar-year partnerships and S corporations whose 2022 extensions end on Sept. 15, 2023, and calendar-year corporations whose 2022 extensions expire on Oct. 16, 2023 – qualify for the extended date of Feb. 15, 2024.
– Penalties on payroll and excise tax deposits due on or after Aug. 27, 2023, and before Sept. 11
Additional tax relief for eligible counties:
– 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 2022 return have extra time, until Oct. 15, 2024, to make this election.
– Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.
If you receive a penalty notice from the IRS regarding an original or extended filing, payment, or deposit due date falling within the postponed period, contact the phone number listed on the notice to have the IRS abate the penalty.
If you were affected by the disaster but reside outside of the covered counties, you can call the IRS disaster hotline at 866-562-5227 to request this tax relief.
Here’s how you can take action:
Gather Your Documents: Start organizing your tax-related documents promptly. This includes income statements, expense receipts, and any other relevant financial information.
Consult a Tax Professional: Reach out to our team who can guide you through the process and help ensure you take advantage of all available deductions and credits.
Stay Informed: Keep an eye on updates from the IRS and any additional relief measures that may be announced in the future.
While we understand that the recovery process may be ongoing for many individuals and businesses in the affected areas, we urge our clients to prioritize their tax obligations. Although the IRS has provided tax relief measures, it’s essential to initiate the tax preparation process as soon as possible to avoid any last-minute rush and potential penalties.
Our dedicated team is here to assist you every step of the way, providing expert guidance and support during this challenging time.