Victims of the severe storms, tornadoes, flooding, landslides, and mudslides that took place beginning on April 2, 2015, in parts of Kentucky may qualify for tax relief from the Internal Revenue Service.

After recent disaster declarations for individual assistance issued by the Federal Emergency Management Agency, the IRS announced Tuesday that affected taxpayers in Kentucky will receive tax relief. The President has declared Bath, Bourbon, Carter, Elliott, Franklin, Jefferson, Lawrence, Madison, Rowan and Scott counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after April 2, and on or before July 31, have been postponed to July 31, 2015.

This includes the April 15 deadline for filing 2014 individual income tax returns, making income tax payments and making 2014 contributions to an individual retirement account (IRA). This also includes the May 15 deadline for many tax-exempt organizations to file their annual Form 990 and the June 15 deadline for making quarterly estimated tax payments. A variety of business tax deadlines are also affected including the April 30 and July 31 deadlines 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 April 2, and on or before April 17, as long as the deposits are made by April 17, 2015.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. 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 noted that it automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

 

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