IRS announces tax breaks for Alabama storm victims

BIRMINGHAM, Ala. (WBRC) – Residents of Autauga and Dallas counties affected by storm damage during the tornado outbreak earlier this month may be eligible for tax breaks.

The detailed information from the IRS is below:

WASHINGTON — Victims of severe storms, straight-line winds and tornadoes beginning on January 12, 2023 now have until May 15, 2023 to file various individual and corporate tax returns and make tax payments, the Internal Revenue Service announced today.

Under the Disaster Statement issued by the Federal Emergency Management Agency, individuals and households affected by severe storms, straight-line winds, and tornadoes who reside or have a business in Autauga and Dallas counties are eligible for tax breaks. The statement allows the IRS to extend certain tax filing and tax payment deadlines for taxpayers who reside or have businesses in the disaster area. For example, certain deadlines falling on or after January 12, 2023 and before May 15, 2023 will be granted an additional deadline for filing until May 15, 2023.

As a result, affected individuals and businesses have until May 15, 2023 to file returns and pay any taxes originally due during that period. This includes income tax returns for 2022, which are due on April 18, as well as various corporate returns for 2022, which are normally due on March 15 and April 18, 2023. This means, among other things, that eligible taxpayers have until May 15 to make their contributions to 2022 IRAs and health savings accounts.

Additionally, farmers who waive estimated tax payments and normally submit their returns by March 1, 2023 now have until May 15, 2023 to submit their 2022 return and pay any taxes due.

The May 15, 2023 deadline also applies to quarterly estimated tax payments, which are normally due on January 17 and April 18, 2023. This means that individual taxpayers can skip paying the estimated fourth-quarter tax payment, which is normally due on January 17, 2023, and instead include it on the 2022 tax return they file on or before May 15.

The May 15, 2023 deadline also applies to quarterly payroll and consumption tax returns, which are normally due on January 31, 2023 and April 30, 2023. 2023 and before 01/27/2023 reduced, provided that the tax prepayments are made by 01/27/2023.

If an affected taxpayer receives a late filing or default notice from the IRS with an original or extended filing, payment, or escrow date that falls within the deferral period, the taxpayer should call the phone number on the notice to contact the IRS to reduce 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 outside of the covered disaster area should call the IRS Disaster Hotline at 866-562-5227 to apply for this tax relief.

Covered disaster area

The locations listed above form a covered disaster area for Treas purposes. Registration number. §301.7508A-1(d)(2) and are entitled to the reliefs listed below.

Affected taxpayers

Taxpayers who are considered impacted taxpayers entitled to a deferral of time to file tax returns, pay taxes, and take other time-sensitive actions are the taxpayers listed in Treas. Registration number. § 301.7508A-1(d)(1) and includes individuals residing in the Covered Disaster Area and corporations (including tax-exempt organizations) having their principal place of business located there. Taxpayers not located in the covered disaster area but whose records are required to meet a deadline listed in Treas. Registration number. § 301.7508A-1(c) in the covered disaster area are also eligible for relief. In addition, all aid workers who are affiliated with a recognized governmental or philanthropic organization who are assisting with the relief effort in the affected disaster area and anyone visiting the affected disaster area who has been killed or injured as a result of the disaster are eligible for assistance.

Under Section 7508A, the IRS gives affected taxpayers until May 15, 2023 to file most tax returns (including income tax returns for individuals, corporations, and estate and trust companies; partnership tax returns, S corporation returns, and trust returns; inheritance, gift, and generational leap tax returns, annual information returns from tax-exempt organizations, and labor and certain excise tax returns) that have either an original or extended due date that is on or after January 12, 2023 and before May 15, 2023 will be filed until January 15, 2023. May 2023 additional deadline for submission granted.

Affected taxpayers whose estimated income tax payment was originally due on or after January 12, 2023 and before May 15, 2023 and is deferred to May 15, 2023 will not be penalized for failing to pay the estimated tax rates for as long as such payments will be made on or before May 15, 2023.

The IRS is also giving impacted taxpayers until May 15, 2023 to take other time-sensitive actions outlined in Treas. Registration number. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (December 10, 2018) to be performed on or after January 12, 2023 and before May 15, 2023 are granted an additional deadline for filing until May 15, 2023.

This facility also includes the filing of 5500 Series returns that were required to be filed on or after January 12, 2023 and before May 15, 2023 and are deferred to May 15, 2023 where Section 8 of Rev. Proc . 2018-58. The provisions set out in Section 17 of Rev. Proc. 2018-58, which relates to exchanges of property of the same kind, also applies to certain Taxpayers who are not otherwise Affected Taxpayers and may include actions to be taken before or after the above period.

Unless an act is expressly set forth in Rev. Proc. In 2018-58, the deferral of the filing and payment deadline does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; on Form 1042-S, 3921, 3922, or 8027; or on employment and excise tax deposits. However, penalties for deposits due on or after January 12, 2023 and before January 27, 2023 will be reduced as long as tax deposits are made by January 27, 2023.

accident losses

Affected taxpayers in a federally declared disaster area have the option to claim disaster-related accidental losses on their federal income tax returns for either the year the event occurred or for the prior year. See Release 547 for details. Individuals can deduct losses of personal property that are not covered by insurance or other reimbursements. For details see Form 4684 Losses and Thefts and be instructions. Affected taxpayers who are claiming disaster damage on their return should write the disaster designation “Alabama, severe storms, straight line winds and tornadoes” in bold letters at the top of the form. Be sure to include the FEMA Disaster Declaration number, FEMA-4684-DR, with each return. See Release 547 for details.

Other relief

The IRS waives the usual fees and requirement for affected taxpayers to provide copies of previously filed returns. Taxpayers should put the assigned disaster designation, Alabama severe storms, straight line winds and tornadoes, on top in bold letters Form 4506, Request for Copy of Tax Returnor Form 4506-T, Request for a Transcript of the Tax Return, if applicableand file it with the IRS.

Affected taxpayers who are contacted by the IRS about a collection or audit matter should explain how the disaster is affecting them so that the IRS can properly consider their case. taxpayer maybe Download forms and publications from the official IRS website, IRS.gov.

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