Victims of the early May’s severe storms, tornadoes, straight-line winds and flooding in parts of Texas may qualify for tax relief from the IRS.
President Obama has declared the Texas counties of Angelina, Bastrop, Blanco, Bowie, Brazoria, Caldwell, Cherokee, Cooke, Dallas, Denton, Eastland, Ellis, Erath, Fort Bend, Fannin, Fayette, Frio, Gaines, Grayson, Guadalupe, Harris, Harrison, Hays, Henderson, Hidalgo, Jim Wells, Johnson, Liberty, Milam, Montague, Montgomery, Navarro, Nueces, Rusk, Smith, Travis, Trinity, Van Zandt, Walker, Wichita, Williamson and Wise a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.
Similarly, victims of the late-May severe storms and flooding in parts of Wyoming may qualify for relief. President Obama has declared Johnson and Niobrara Counties in that state a federal disaster area.
The IRS will postpone certain deadlines for affected taxpayers. For instance, certain deadlines falling on or after May 4 and on or before Nov. 2 have been postponed to Nov. 2.
This includes the May 15 deadline for many tax-exempt organizations to file their 990, as well as the June 15 and Sept. 15 deadlines for quarterly estimated tax payments. A variety of business tax deadlines are also affected, including the July 31 deadline for quarterly payroll and excise tax returns.
In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after May 4 as long as the deposits were made by May 19.
Certain deadlines falling on or after May 24 and on or before Aug. 31 have been postponed to Aug. 31. This includes the June 15 deadline for quarterly estimated tax payments. Business-tax deadlines also affected include the July 31 deadline for quarterly payroll and excise tax returns.
Also waived: failure-to-deposit penalties for employment and excise tax deposits due on or after May 24, as long as the deposits were made by June 8.
Contact the IRS
In both states, affected taxpayers who receive an IRS penalty should call the number on the notice to have the IRS abate any interest and late-filing or late-payment penalties. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.
The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. Affected taxpayers who reside or have a business outside the covered disaster area must call the IRS disaster hotline at (866) 562-5227 to request this relief.
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