06/07/2024
IRS announces tax relief for taxpayers impacted by severe storms, straight-line winds, tornadoes, landslides, and mudslides in Kentucky
WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in Kentucky that were affected by severe storms, straight-line winds, tornadoes, landslides, and mudslides that began on April 2, 2024. These taxpayers now have until Nov. 1, 2024, to file various federal individual and business tax returns and make tax payments.
Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in Boyd, Carter, Fayette, Greenup, Henry, Jefferson, Jessamine, Mason, Oldham, Union, and Whitley counties qualify for tax relief.
The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after April 2, 2024, and before Nov. 1, 2024, are granted additional time to file through Nov. 1, 2024. As a result, affected individuals and businesses will have until Nov. 1, 2024, to file returns and pay any taxes that were originally due during this period.
The Nov. 1, 2024, deadline applies to individual income tax returns and payments normally due on April 15, 2024. This deadline also applies to any payment normally due during this period, including the quarterly estimated tax payment due on April 15, 2024, June 17, 2024, and Sept. 16, 2024, and the quarterly payroll and excise tax returns normally due on April 30, 2024, July 31, 2024, and Oct. 31, 2024. In addition, penalties on payroll and excise tax deposits due on or after April 2, 2024, and before April 17, 2024, will be abated as long as the tax deposits were made by April 17, 2024.
If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief. Disaster area tax preparers with clients located outside the disaster area can choose to use the bulk requests from practitioners for disaster relief option, described on IRS.gov.
Covered disaster area
The localities listed above constitutes a covered disaster area for purposes of Treas. Reg. §301.7508A-1(d)(2) and are entitled to the relief detailed below.
Affected taxpayers
Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.
Under section 7508A, the IRS gives affected taxpayers until Nov. 1, 2024, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after April 2, 2024, and before Nov. 1, 2024, are granted additional time to file through Nov. 1, 2024.
Affected taxpayers that have an estimated income tax payment originally due on or after April 2, 2024, are postponed through Nov. 1, 2024, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before Nov. 1, 2024.
The IRS also gives affected taxpayers until Nov 1, 2024, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (December 10, 2018), that are due to be performed on or after April 2, 2024, and before Nov. 1, 2024, are granted additional time to file through Nov. 1, 2024.
This relief also includes the filing of Form 5500 series returns that were required to be filed on or after April 2, 2024, and before Nov. 1, 2024, are postponed through Nov. 1, 2024, in the manner described in section 8 of Rev. Proc. 2018-58. The relief described in section 17 of Rev. Proc. 2018-58, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.
Unless an act is specifically listed in Rev. Proc. 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits. However, penalties on deposits due on or after April 2, 2024, and before April 17, 2024, will be abated as long as the tax deposits were made by April 17, 2024.
Casualty Losses
