Weather victims in Tennessee get tax relief

Victims of storms in Tennessee now have until July 31 to file various federal individual and business tax returns and make tax payments.

The IRS is offering relief to any area designated by the Federal Emergency Management Agency after tornadoes, severe storms and straight-line winds that started on March 31. Individuals and households that reside or have a business in Cannon, Hardeman, Hardin, Haywood, Lewis, Macon, McNairy, Rutherford, Tipton and Wayne Counties qualify for this relief.

Other areas added later to the disaster area will also qualify for the same relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov, which also contains details on other returns, payments and tax-related actions qualifying for the additional time.

The relief postpones various tax filing and payment deadlines that occurred starting March 31. Affected individuals and businesses will have until July 31 to file returns and pay any taxes that were originally due during this period. This includes 2022 individual income tax returns and various business returns due on April 18. Also, eligible taxpayers have until July 31 to make 2022 contributions to their IRAs and health savings accounts. 

The July 31 deadline also applies to the quarterly estimated tax payments normally due on April 18 and June 15, and to the quarterly payroll and excise tax returns normally due on April 30, 2023. Penalties on payroll and excise tax deposits due on or after March 31 and before April 18 will be abated as long as the tax deposits are made by April 18, 2023. 

Affected taxpayers who need time to file beyond July should request additional time electronically before the original April 18 deadline. Two ways to do this are through either IRS Free File or IRS Direct Pay, both on IRS.gov (see IRS.gov/extensions for details). After April 18 and before July 31, disaster area taxpayers can file their extension requests only on paper. 

The IRS automatically provides filing and penalty relief to any taxpayer with an address of record located in a disaster area; taxpayers do not need to contact the agency. 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 falling within the postponement period, they should call the number on the notice to have the penalty abated.

Taxpayers qualifying for relief who live outside the disaster area need to call (866) 562-5227. This includes workers helping with relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can claim them on either the return for the year the loss occurred or the return for the prior year. They should write the FEMA declaration number (4701-DR) on any return claiming a loss.