The Internal Revenue Service (IRS) has announced that victims of December’s violent storms in Mississippi will have extra time to file their 2015 tax returns and pay any tax due. The IRS has tacked on an extra month extending the due date from April 18, 2016, to May 16, 2016, for those affected to file their returns and pay any taxes due. Relief workers, including those with the government and charitable organizations, also qualify for relief.
The announcement followed the President’s disaster declaration on January 4, 2016, for residents of Benton, Coahoma, Marshall, Quitman, and Tippah counties affected by severe storms, tornadoes, straight-line winds, and flooding around the holidays, from December 23-28, 2015. Other locations in Mississippi and locations in other states may be added to the list, pending the outcome of damage assessments by the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA). If you’re not sure whether you’re covered, you can look up whether your address qualifies on the FEMA site.
A federal declaration means that federal funding is available to affected individuals. Assistance from FEMA can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster.
For tax purposes, relief has been extended for tax filing and payment deadlines beginning on the date the storms began, December 23, 2015. That means that in addition to extending the due date for filing returns and paying taxes from April 18, 2016, to May 16, 2016, due dates for quarterly and estimated tax payments (those due January 15 and April 18) are also extended as well as a variety of business tax deadlines. The IRS will also waive penalties for late deposits for federal payroll and excise tax deposits which were normally due on or after December 23, 2015, and before January 7, 2016, so long as those deposits are made by January 7, 2016.
How do affected taxpayers take advantage of the extra time? If your address is located within the dedicated disaster area, you don’t have to do anything: the IRS will automatically provide filing and penalty relief. If you live outside of the disaster area but have your tax and/or related records in the affected area, or you otherwise qualify for an exception, you need to contact the IRS at 1.866.562-5227. If you receive a late filing or late payment penalty notice from the IRS but you qualify for relief, you need to call the number on the notice to discuss your situation and have the penalty abated.
If you suffered loss or damage due to the storms, you make be able to claim a deduction on your tax return.
