Hurricane Ian was the deadliest hurricane to strike the state of Florida since 1935. This hurricane was under category 4 Atlantic hurricane which left many fatalities, turmoil, and destruction. IRS has announced tax debt relief for the Ian hurricane victims in order to help the people of Florida through these trying times. The IRS tax relief and tax help is a hopeful announcement amidst the crisis.
Internal Revenue Service or IRS is also extending the tax deadlines for hurricane victims. You can look for tax relief, tax forgiveness, and tax refund criteria from the IRS to further avail the necessary aid. Especially for the victims of hurricane Ian, these measures of IRS tax relief can be of immense help. In this article, we will elaborate more on tax debt relief from the IRS.
Tax Relief And Extension For The Victims Of Hurricane Ian
According to the latest updates from the IRS, the tax relief program is part of a coordinated federal response to Hurricane Ian’s damage. It is based on Federal Emergency Management Agency or FEMA’s local damage estimates.
According to the estimates, individuals and households residing anywhere in Carolina or Florida automatically qualify for the tax relief program. You can find the list of eligible localities for tax relief on the disaster relief page of the IRS.
IRS automatically provides filing and penalty relief to taxpayers who have an IRS address located in the disaster area of hurricane Ian. As a result, taxpayers will not have to individually contact the agency to avail of this tax relief. Here, all residents of the state of Florida are automatically eligible for IRS tax relief.
The official declaration of the IRS, states that the IRS will postpone certain tax-filing and tax-payment deadlines for taxpayers who live or work in the disaster region. The deadlines between September 23, 2022, to February 2023, are postponed until February 15, 2023.
Therefore, all those taxpayers who have a valid extension to file their 2021 tax return which was set to expire on October 17, 2022, will now have until February 15, 2023, to file. On the contrary, according to the IRS, tax payments for these 2021 forms (due on April 18, 2022) are excluded from this relief.
Tax Relief For The Casualty Losses Due To Hurricane Ian
The taxpayers who have been affected by hurricane Ian are eligible to claim disaster-related casualty losses on their federal income tax return. This can be done for either the year when they faced the casualty losses or for the previous year. For more information regarding casualties and disasters, make sure to go through Publication 547 of the IRS.
IRS states that individuals can deduct personal property losses that are not covered by insurance or other reimbursements on their tax filings. So, for the victims of hurricane Ian and all those who faced casualty losses, this eligibility can allow you to apply for tax relief on your tax filings.
So, in the case of hurricane Ian, taxpayers can claim their disaster losses. To do so, the taxpayers must put the Disaster Designation, “SC Hurricane Ian” in bold letters at the top of the form. They must also be careful to include the FEMA disaster declaration number, DR-3585-SC- on any return. In this way, taxpayers can seek tax relief for their casualty losses.
Tax Relief By IRS For Businesses Vs Individual Taxpayers
IRS tax relief is a significant tool for aid to the victims of hurricane Ian. This goes equally for the individual taxpayers as well as the businesses in the disaster location. Here, the tax relief and extension deadlines for individual taxpayers as well as businesses in the disaster region are described further.
Individual Taxpayers: The taxpayers who had a legal extension to file (not pay) until the deadline of 17th October 2022 have a deadline extension. Due to the damages of hurricane Ian, the extended deadline is now set for 15th February 2023.
At the same time, the deadline of February 15 also applies to the quarterly estimated income tax payments. These payments are due on 17th January 2023. Also, quarterly payroll excise tax filings are ordinarily due on 31st October 2022, and 31st January 2023.
Businesses: Business organizations that initially had the due date or extended date up until 23rd September 2022 now have an extended deadline. The new deadline, from the sources of the IRS, is on 15th February 2023.
At the same time, tax-exempt organizations are also eligible for the extended deadline, including for 2021 calendar-year returns. This will expire on 15th November 2022.
The penalties on payroll and excise tax deposits that were due by businesses after 23rd September 2022, and in the time before 10th October 2022 will be waived under the IRS tax relief actions undertaken due to hurricane Ian. However, the only condition is that the deposits are to be made by 10th October 2022.
Other Hurricane Ian Disaster-Related Losses And Relief
From the publication of Internal Revenue Stream or IRS, several other losses and their due relief have been discussed on their page. These relief options are applicable for both the residents of Florida, South Carolina, and North Carolina. That is, the residents of the disaster region are automatically eligible for the other relief systems provided by IRs.
The published announcement states that, for affected taxpayers, the IRS will not charge the usual costs or deny requests for copies of previously filed tax returns. To avail of other relief that the taxpayers request for, taxpayers must boldly write the designated disaster designation, “SC Hurricane Ian” at the top of Form 4506.
When the IRS contacts an affected taxpayer about a collection or for the examination of a problem, the taxpayers must cooperate accordingly. They should describe how the disaster has affected them so that the IRS can give their case the proper consideration. In this way, taxpayers will be able to avail relief for the losses that they have incurred due to hurricane Ian.
Conclusion
IRS tax relief is of great impact to the victims of hurricane Ian in these challenging times. With the right availability of tax help, tax forgiveness, and tax refund, the taxpayers of these affected regions can get a hold back on their normal life.
Thus, through this, many people can get the upper hand in going back to their normal lives after hurricane Ian.
