IRS postpones tax deadline for eligible Florida storm victims

Blog, Tax Services

The Internal Revenue Service recently announced that they have postponed the tax filing deadline date to August 15th, 2023 for eligible storm victims in Florida. They are offering this relief to the designated disaster areas declared by the Federal Emergency Management Agency (FEMA) on April 27th, as a result of severe storms, tornadoes and flooding that occurred during dates April 12th to April 14th. This tax relief is part of a federal response to the impact caused by these storms and is based on local damage assessments. Individuals and households that either reside in or have a business located in Broward County can qualify. Additional areas that are added at a later date to the disaster area will also qualify. The current listing of eligible localities can be viewed on the disaster relief page located on the IRS.gov website.

Any affected taxpayers within the declared disaster areas will have until this new postponement date to file various federal returns, whether individual or business related, as well as to make certain tax payments that would have originally been due on April 18th. Also, within the additional time permitted, they are able to make 2022 contributions to their IRAs and health savings accounts. In addition, this postponed deadline date will also apply to quarterly estimated tax payments normally due on April 18th and June 15th as well as to quarterly payroll and excise tax returns normally due on May 1st and July 31st of this year. Penalties on payroll and excise tax deposits due on or after April 12th and before April 27th will be removed, as long as the tax deposits were made by April 27th.

Fortunately, affected taxpayers will automatically receive this new postponement deadline date, even if they failed to request a tax-filing extension by tax deadline of April 18th. With that said, they do not need to contact the Internal Revenue Service to initiate this, the IRS will automatically provide filing and penalty relief to any affected taxpayer with an IRS address of record in the designated disaster areas. If an affected taxpayer should receive a late-filing and/or late-payment penalty notice in the mail that has an original or extended filing, payment or deposit due date falling within the postponement period, the IRS is requesting that you contact them at the phone number listed on the notice to have the penalty removed.

The IRS has indicated it will work with taxpayers who live outside of the disaster area but have the necessary records to meet a deadline during the postponement period in the affected area. The relief also applies to workers affiliated with a recognized government or philanthropic organization who assisted in relief activities. A taxpayer qualifying for relief who lives outside of the disaster area would need to contact the IRS at (866) 562-5227 to self-identify for the disaster relief.

If for some reason additional time is needed in order to file a return beyond the Aug. 15th postponement deadline, then an extension request must be filed on paper using Form 4868 (e-file options are no longer available for an extension after April 18th). By filing out the required paper form, it would allow until Oct. 16th to file their tax return accordingly; however, it’s important to note that tax payments are still due by Aug. 15th.

Please note, individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can claim them on either the return for the year the loss occurred or the return for the prior year. It is strongly advised that when submitting a return claiming a loss, that the FEMA declaration number (4709-DR) is included as well as “Disaster Designation” written in bold letters at the top of the return.

Additional FAQ are available on the IRS.gov website. Please consult with your tax professional to understand the impact of this recent guidance from the Internal Revenue Service, as to whether this pertains to you and your current tax situation.

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