Tax relief for weather victims in Nebraska and Iowa

Victims of severe winter storms, straight-line winds and flooding that occurred in parts of Nebraska on March 9 and parts of Iowa on March 12 may be eligible for tax relief from the IRS.

Sign in front of IRS building in Washington, D.C.
The IRS building in Washington, D.C.

Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS said that affected Nebraska taxpayers in certain areas will receive tax relief. Individuals who reside or have a business in Butler, Cass, Colfax, Dodge, Douglas, Nemaha, Sarpy, Saunders and Washington Counties may qualify.

Individuals who reside or have a business in the Iowa counties of Fremont, Harrison, Mills, Monona and Woodbury may qualify.

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 March 9 for Nebraska and March 12 for Iowa but before July 31 are granted additional time to file through July 31, 2019. This includes 2018 individual income tax returns and payments normally due on April 15. It also includes the quarterly estimated income tax payments due on April 15 and June 17. Eligible taxpayers will also have until July 31 to make 2018 IRA contributions.

In addition, penalties on payroll and excise tax deposits due on or after March 9 in Nebraska and before March 25 will be abated as long as the deposits were made by March 25, 2019. In Iowa, penalties on payroll and excise tax deposits due on or after March 12 and before March 27 will be abated as long as the deposits were made by March 27, 2019.

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 number on the notice to have the IRS abate the penalty.

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 located outside the covered disaster area must call the IRS disaster hotline at (866) 562-5227 to request this relief.

For reprint and licensing requests for this article, click here.