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The Internal Revenue Service (IRS) recently announced that Hurricane Ian victims throughout Florida, North Carolina and South Carolina now have until Feb. 15, 2023, 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 (FEMA). This means individuals and households who reside or have a business in Florida or the Carolinas qualify for tax relief, which is part of a coordinated federal response to the damage caused by Hurricane Ian and based on local damage assessments by FEMA.
The tax relief postpones various tax filing and payment deadlines that occurred starting on Sept. 25, 2022, in South Carolina and Sept. 28, 2022, in North Carolina. As a result, affected individuals and businesses have this extended time to file returns and pay any taxes that were originally due during this period.
This means individuals who had a valid extension to file their 2021 return due to run out on Oct. 17, 2022, will now have until Feb. 15, 2023, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief.
For affected areas in Florida and the Carolinas:
The IRS will work with any taxpayer who lives outside the disaster areas, but whose records necessary to meet a deadline occurring during the postponement period are located in the affected areas. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. These such entities and individuals who have been impacted by Hurricane Ian, but are not physically located in the disaster areas, will need to contact the IRS to claim their tax relief.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster areas. Therefore, these taxpayers do not need to contact the agency to get this relief. Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2022 return normally filed next year), or the return for the prior year (2021).
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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