The Internal Revenue Service announced that Hurricane Florence victims in parts of North Carolina and elsewhere will have until Jan. 31, 2019, to file certain individual and business tax returns and make certain tax payments.
The IRS is offering this relief to any area designated by the Federal Emergency Management Agency (FEMA), as qualifying for individual assistance. At the moment this pertains only to parts of North Carolina. Taxpayers in localities added later to the disaster area, including those in effected states, will automatically receive the same filing as well as payment relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.
Asffected individuals and businesses will have until Jan. 31, 2019, to file returns and pay any taxes that were originally due during this period that occur starting on Sept. 7, 2018 in North Carolina.
This also includes quarterly estimated income tax payments due on Sept. 17, 2018, and the quarterly payroll and excise tax returns normally due on Oct. 31, 2018. Businesses with extensions also have the additional time including, among others, calendar-year partnerships whose 2017 extensions run out on Sept. 17, 2018. Taxpayers who had a valid extension to file their 2017 return due to run out on Oct. 15, 2018 will also have more time to file.
In addition, penalties will be abated for payroll and excise tax deposits due on or after Sept. 7, 2018, and before Sept. 24, 2018, as long as the deposits are made by Sept. 24, 2018.
The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time.
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, the taxpayer should call the number on the notice to have the penalty abated.
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the 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 choose to claim them on either the return for the year the loss occurred (in this instance, the 2018 return normally filed next year), or the return for the prior year (2017). See Publication 547 for details.
The tax relief is part of a coordinated federal response to the damage caused by severe storms and flooding and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.