IRS Offers Tax Relief to Storm Victims in Georgia and Alabama; Registration and payment deadlines extended

In Release 547, the IRS announced that storm victims in parts of Georgia and Alabama now have until May 15, 2023 to file various state individual and corporate tax returns and make tax payments. This applies to tax return and payment deadlines beginning on January 12, 2023.

This extended deadline includes a number of returns and payments in 2022:

  • Individual income tax returns, which are usually due on April 18th.
  • Business statements of various types, normally due March 15 and April 18, 2023.
  • The farmer’s income tax return is usually due by March 1st if he waives the estimated tax payments (more details below).
  • Estimated tax payments normally due January 17 and April 18, 2023 (more details below).
  • Quarterly payroll and consumption tax returns, normally due January 31 and April 30, 2023 (more details below).

This means, among other things, that eligible taxpayers have until May 15, 2023 to make contributions to their IRAs and health savings accounts in 2022.

farmers

Farmers (and presumably fishermen) in the affected parts of Alabama and Georgia who normally file their returns by March 1, 2023 now have until May 15, 2023 to file their 2022 return and pay any taxes due.

Estimated tax payments

The extended deadline also applies to quarterly estimated tax payments, which are normally due on January 17, 2023 and April 18, 2023. This means individual taxpayers can skip the prospective 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.

Payroll and Excise Taxes

The May 15 deadline also applies to quarterly payroll and consumption tax returns, which are normally due on January 31 and April 30, 2023. In addition, penalties on payroll and excise deposits due on or after January 12, 2023 and before January 27, 2023 will be relaxed. provided that the tax prepayments are made by January 27, 2023.

Georgia and Alabama counties affected by IRS statement

Individuals and corporations in Butts, Henry, Jasper, Meriwether, Newton, Spalding and Troup counties in Georgia and in Autauga and Dallas counties in Alabama are eligible for this relief. The current list of eligible locations is available on the Disaster Relief page on IRS.gov.

The tax relief is automatic

The IRS automatically makes a filing and penalty relief available to any taxpayer with an IRS record address in the disaster area. Therefore, taxpayers do not have to contact the agency to get this relief.

However, an affected taxpayer may receive a late filing or late payment summons from the IRS with an original or extended filing, payment, or filing date that falls within the deferral period. If this is the case, the taxpayer should call the number on the notice to have the penalty waived.

What affected taxpayers residing outside the designated areas should do

In addition, the IRS will work with any taxpayer who lives outside the disaster area but has records needed to meet a deadline during the deferral period in the affected area.

Taxpayers who are eligible for relief and live outside the disaster area must contact the IRS at 866-562-5227. This includes employees who support relief efforts that are affiliated with a recognized government or philanthropic organization.

When taxpayers can claim their losses

Individuals and businesses in federally-declared disaster areas that have suffered uninsured or unpaid catastrophe-related losses may claim losses on either

  1. the declaration for the year in which the loss occurred (in this case the declaration for 2023 normally filed in the next year), or
  2. the return for the previous year (2022, usually filed in this tax season).

The IRS reminds tax professionals and taxpayers to write the FEMA return number — 4684-DR for Alabama or 4685-DR for Georgia — on any tax return claiming a loss.

The IRS Disaster Relief page provides details of other returns, payments, and tax-related actions eligible for the additional time.

See Publication 547 for more details.

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