Tax relief for victims of Michigan weather

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Victims of the severe storms and flooding that took place beginning on June 22 in parts of Michigan may qualify for tax relief, according to the Internal Revenue Service.

Following the recent disaster declaration for individual assistance by the Federal Emergency Management Agency, the IRS said that affected taxpayers in Michigan will receive tax relief. Individuals who reside or have a business in the counties of Bay, Gladwin, Isabella or Midland, as well as the Saginaw Chippewa Tribe within Isabella County, may qualify for tax relief.

The IRS can postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after June 22 and before October 31 are granted additional time to file through October 31. This includes taxpayers who had a valid extension to file their 2016 return that was due to run out on October 16; it also includes the estimated tax payment due on September 15 and the quarterly payroll returns that were due on July 31.

Affected taxpayers will not be subject to penalties for failure to pay estimated tax as long as these payments are made on or before October 31. In addition, penalties on employment and excise tax deposits due on or after June 22 and before July 7 of this year will be abated as long as these deposits were made by July 7.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice.

The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. 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 relief.

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