IRS Tax Relief for Idalia-Affected Individuals and Businesses in Florida
The Internal Revenue Service (IRS) has recently announced crucial tax relief measures for individuals and businesses affected by Idalia in specific regions of Florida. This tax relief extension grants affected taxpayers an extended deadline of February 15, 2024, to complete various federal individual and business tax-related tasks, including filing returns and making tax payments.
The IRS's assistance applies to areas designated by the Federal Emergency Management Agency (FEMA), and presently, 46 out of Florida's 67 counties qualify for this relief. It's important to note that individuals and businesses residing or operating in these eligible counties are entitled to this tax relief. Moreover, any additional areas designated as disaster areas in the future will also receive this relief. You can always check the updated list of eligible regions on the IRS disaster relief page at IRS.gov.
Filing and Payment Relief:
The tax relief extension postpones various tax filing and payment deadlines that originally fell between August 27, 2023, and February 15, 2024. Consequently, affected individuals and businesses now have until February 15, 2024, to file their returns and settle any taxes that were initially due within this period.
Here are some key details:
- Individuals who obtained an extension for filing their 2022 returns, which was originally set to expire on October 16, 2023, now have until February 15, 2024, to submit their returns. However, it's important to note that tax payments related to these 2022 returns, which were originally due on April 18, 2023, are not eligible for this relief.
- Quarterly estimated income tax payments, typically due on September 15, 2023, and January 16, 2024, are now postponed.
- Quarterly payroll and excise tax returns, usually due on October 31, 2023, and January 31, 2024, have also been extended.
- Calendar-year partnerships and S corporations with 2022 extensions expiring on September 15, 2023, are included.
- Calendar-year corporations with 2022 extensions expiring on October 16, 2023, are covered.
- Calendar-year tax-exempt organizations with extensions expiring on November 15, 2023, are part of this relief.
Furthermore, penalties for failing to make payroll and excise tax deposits between August 27, 2023, and September 11, 2023, will be waived if the deposits are made by September 11, 2023.
Filing and Penalty Relief:
The IRS automatically grants filing and penalty relief to any taxpayer with an IRS address of record located within the disaster area. Such taxpayers do not need to contact the IRS to access this relief.
In unique cases where an affected taxpayer does not have an IRS address of record within the disaster area, they may receive a late filing or late payment penalty notice for the postponement period. In such situations, the taxpayer should contact the IRS using the number provided on the notice to have the penalty waived.
Additionally, the IRS will collaborate with taxpayers living outside the disaster area but whose records necessary to meet a deadline during the postponement period are located in the affected region. These qualifying taxpayers should contact the IRS at 866-562-5227. This also applies to workers assisting in relief activities affiliated with recognized government or philanthropic organizations.
Additional Tax Relief:
Individuals and businesses in federally declared disaster areas who have suffered uninsured or unreimbursed disaster-related losses have the option to claim these losses on either their return for the year in which the loss occurred (in this case, the 2023 return filed next year) or the prior year (2022). Taxpayers have an extended period of up to six months after the due date of their federal income tax return for the disaster year (excluding any filing extensions) to make this election. It's essential to include the FEMA declaration number, DR-3596-EM, on any return claiming a loss. Further details can be found in Publication 547, Casualties, Disasters, and Thefts.
Qualified disaster relief payments are generally not included in gross income. This means affected taxpayers can exclude amounts received from a government agency for necessary personal, family, living, funeral expenses, as well as for the repair or rehabilitation of their home or its contents. You can refer to Publication 525, Taxable and Nontaxable Income, for more information.
Additional relief may be available to affected taxpayers who participate in retirement plans or individual retirement arrangements (IRAs). This includes special disaster distributions that are not subject to the additional 10% early distribution tax and the ability to spread the income over three years. Specific rules and guidance for participants are provided by each plan or IRA.
Lastly, it's worth noting that the IRS may offer further disaster relief in the future. This tax relief effort is part of a coordinated federal response to the damage caused by Idalia and is based on local damage assessments by FEMA. For comprehensive information on disaster recovery, visit DisasterAssistance.gov.