Recent Tax Relief Announcements for Disaster Area Victims

Presenters/Authors
Pillars on a Government building

Throughout June and July of 2019, FEMA announced major disaster declarations for several states due to recent severe storms, tornadoes, straight-line winds, flooding and landslides. Following these announcements, the IRS has provided tax relief for qualifying taxpayers in certain states and counties. Individuals or businesses whose principal place of business is located in the following covered disaster areas—as well as taxpayers whose records necessary to meet a deadline listed in Treasury Regulation Section 301.7508A-1(c) are in the covered disaster areas—may qualify for tax relief.

  • Arkansas: Arkansas, Conway, Crawford, Desha, Faulkner, Jefferson, Lincoln, Logan, Perry, Pope, Pulaski, Sebastian, Yell
     
  • Missouri: Andrew, Atchison, Boone, Buchanan, Callaway, Carroll, Chariton, Cole, Greene, Holt, Jackson, Jasper, Jefferson, Lafayette, Lewis, Lincoln, Livingston, McDonald, Miller, Newton, Osage, Pike, Platte, Pulaski, Saline, St. Charles
     
  • Ohio: Auglaize, Darke, Greene, Hocking, Mahoning, Mercer, Miami, Montgomery, Muskingum, Perry, Pickaway
     
  • Oklahoma: Alfalfa, Canadian, Cherokee, Craig, Creek, Delaware, Garfield, Kay, Kingfisher, Le Flore, Logan, Mayes, Muskogee, Noble, Nowata, Okmulgee, Osage, Ottawa, Pawnee, Payne, Pottawatomie, Rogers, Sequoyah, Tulsa, Wagoner, Washington, Woods
     
  • South Dakota: Bennett, Bon Homme, Charles Mix, Dewey, Hutchinson, Jackson, Mellette, Minnehaha, Oglala Lakota, Todd, Turner, Yankton, Ziebach Counties, Cheyenne River Sioux Reservation, Pine Ridge Reservation, Rosebud Reservation
     
  • Texas: Cameron, Hidalgo, Willacy

Filing/Payment Deadline Relief

Arkansas

Taxpayers required to file returns with an original or extended due date on or after May 21, 2019, and before September 30, 2019, with an address of record in an identified disaster area have until September 30, 2019, 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; Form 5500 series returns and employment and certain excise tax returns; and annual information returns of tax-exempt organizations.

Taxpayers with an estimated income tax payment originally due on or after May 21, 2019, and before September 30, 2019, won’t be subject to penalties for failure to pay estimated tax installments if such payments are made on or before September 30, 2019. This includes the quarterly estimated income tax payments due on June 17 and September 16, 2019.

Postponement of time to file and pay doesn’t 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. Penalties for deposits due on or after May 21, 2019, and before June 5, 2019, will be abated as long as the tax deposits were made by June 5, 2019.

Missouri

Taxpayers required to file returns with an original or extended due date on or after April 29, 2019, and before August 30, 2019, with an address of record in an identified disaster area have until August 30, 2019, to file most tax returns—including individual, corporate and estate and trust income tax returns; partnership returns, S corp returns and trust returns; estate, gift and generation-skipping transfer tax returns; Form 5500 series returns and employment and certain excise tax returns; and annual information returns of tax-exempt organizations.

Taxpayers with an estimated income tax payment originally due on or after April 29, 2019, and before August 30, 2019, won’t be subject to penalties for failure to pay estimated tax installments if such payments are made on or before August 30, 2019. This includes the quarterly estimated income tax payment due on June 17, 2019.

Postponement of time to file and pay doesn’t 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. Penalties for deposits due on or after April 29, 2019, and before May 14, 2019, will be abated as long as the tax deposits were made by May 14, 2019.

Ohio

Taxpayers required to file returns with an original or extended due date on or after May 27, 2019, and before September 30, 2019, with an address of record in an identified disaster area have until September 30, 2019, to file most tax returns—including individual, corporate and estate and trust income tax returns; partnership returns, S corp returns and trust returns; estate, gift and generation-skipping transfer tax returns; Form 5500 series returns and employment and certain excise tax returns; and annual information returns of tax-exempt organizations.

Taxpayers with an estimated income tax payment originally due on or after May 27, 2019, and before September 30, 2019, won’t be subject to penalties for failure to pay estimated tax installments if such payments are made on or before September 30, 2019. This includes the quarterly estimated income tax payments due on June 17 and September 16, 2019.

Postponement of time to file and pay doesn’t 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. Penalties for deposits due on or after May 27, 2019, and before June 11, 2019, will be abated as long as the tax deposits were made by June 11, 2019.

Oklahoma

Taxpayers required to file returns with an original or extended due date on or after May 7, 2019, and before September 16, 2019, with an address of record in an identified disaster area have until September 16, 2019, to file most tax returns—including individual, corporate and estate and trust income tax returns; partnership returns, S corp returns and trust returns; estate, gift and generation-skipping transfer tax returns; Form 5500 series returns and employment and certain excise tax returns; and annual information returns of tax-exempt organizations.

Taxpayers with an estimated income tax payment originally due on or after May 7, 2019, and before September 16, 2019, won’t be subject to penalties for failure to pay estimated tax installments if such payments are made on or before September 16, 2019. This includes the quarterly estimated income tax payment due on June 17, 2019.

Postponement of time to file and pay doesn’t 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. Penalties for deposits due on or after May 7, 2019, and before May 22, 2019, will be abated as long as the tax deposits were made by May 22, 2019.

South Dakota

Taxpayers required to file returns with an original or extended due date on or after March 13, 2019, and before July 15, 2019, with an address of record in an identified disaster area have until July 15, 2019, to file most tax returns—including individual, corporate and estate and trust income tax returns; partnership returns, S corp returns and trust returns; estate, gift and generation-skipping transfer tax returns; Form 5500 series returns and employment and certain excise tax returns; and annual information returns of tax-exempt organizations.

Taxpayers with an estimated income tax payment originally due on or after March 13, 2019, and before July 15, 2019, won’t be subject to penalties for failure to pay estimated tax installments if such payments were made on or before July 15, 2019. This includes the quarterly estimated income tax payment due on June 17, 2019.

Postponement of time to file and pay doesn’t 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. Penalties for deposits due on or after March 13, 2019, and before March 28, 2019, will be abated as long as the tax deposits were made by March 28, 2019.

Texas

Taxpayers required to file returns with an original or extended due date on or after June 24, 2019, and before October 31, 2019, with an address of record in an identified disaster area have until October 31, 2019, to file most tax returns—including individual, corporate and estate and trust income tax returns; partnership returns, S corp returns and trust returns; estate, gift and generation-skipping transfer tax returns; Form 5500 series returns and employment and certain excise tax returns; and annual information returns of tax-exempt organizations.

Taxpayers with an estimated income tax payment originally due on or after June 24, 2019, and before October 31, 2019, won’t be subject to penalties for failure to pay estimated tax installments if such payments were made on or before October 31, 2019. This includes the quarterly estimated income tax payment due on September 16, 2019.

Postponement of time to file and pay doesn’t 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. Penalties for deposits due on or after June 24, 2019, and before July 9, 2019, will be abated as long as the tax deposits were made by July 9, 2019.

Loss Reporting

Affected taxpayers in a federally declared disaster area have the option to claim disaster-related casualty losses on their federal income tax returns either in the tax year of the loss or on the prior year’s return. Claiming the loss on an original or amended return for the prior tax year may provide an acceleration of any benefit, but consideration should be given to potential tax rate differentials between years and other taxpayer-specific factors.

Contributions to Disaster Victims

There are many outlets organizing assistance for disaster victims. Please exercise caution while selecting organizations to receive your contributions. Philanthropists can evaluate an unfamiliar organization by verifying its tax-exempt status and how it spends its contributions through the Tax Exempt Organization Search website.

Action Required

Federal late filing or late payment penalties for qualifying taxpayers should automatically be abated if the address requirements are met. If taxpayers receive a penalty assessment despite having a qualifying address of record, they should contact the IRS at the number on the notice to request abatement under the disaster relief provisions.

Taxpayers affected by these disasters who reside or have a business outside the covered disaster area should call the IRS disaster hotline at 866.562.5227 to request the above federal relief. Additional information and contacts are available at www.disasterassistance.gov. If you have other questions specific to your business or tax matters, contact your BKD trusted advisor or use the Contact Us form below.


Thumbnail

How can we help you?