IRS provides tax relief for victims of Hurricane Ian

2022-10-06

Hurricane Ian, which began on September 23, barreled through the state of Florida, North Carolina, and South Carolina leaving millions without power and in a state of disaster. If you were impacted by Hurricane Ian we want you to know TurboTax is here for you, and we want to keep you up to date with important tax relief information that may help you in this time of need.

The Federal Emergency Management Agency (FEMA) declared the recent events as a disaster and the IRS announced that victims of Hurricane Ian anywhere in the state of Florida and in the Carolinas have until February 15, 2023 to file various individual and business tax returns and make certain tax payments. Currently tax relief is available to the entire state of Florida, North Carolina, and South Carolina. Taxpayers in certain Ian-impacted localities designated by FEMA will automatically receive the same filing and payment relief. The current list of eligible localities is available on the disaster relief page on IRS.gov.

What are the extended tax and payment deadlines for victims of Hurricane Ian ?

Florida

The tax relief postpones various tax filing and payment deadlines that occurred starting on September 23, 2022. As a result, affected individuals and businesses will have until February 15, 2023 to file returns and pay any taxes that were originally due during this period. These include:

2021 Individual and Business Returns with Valid Extensions: Individuals that had a valid extension to file their 2021 return due to run out on October 17, 2022 will now have until February 15, 2023 to file. Businesses with extensions also have until February 15, 2023 including, among others, calendar-year corporations whose 2021 extensions run out on October 17, 2022. The IRS noted that because tax payments related to 2021 returns were due on April 18, 2022, those payments are not eligible for an extension.
Tax Year 2022 4th Quarterly Estimated Tax Payment: Tax Year 2022 4th quarter estimated tax payment with a deadline of January 17, 2023 has been extended until February 15, 2023
Quarterly Payroll and Excise Tax Returns: Quarterly payroll and excise tax returns that are normally due on October 31, 2022 and January 31, 2023, are also extended until February 15, 2023. In addition, penalties on payroll and excise tax deposits due on or after September 23, 2022 and before October 10, 2022 will be abated as long as the deposits were made by October 10, 2022.

North Carolina and South Carolina

The tax relief postpones various tax filing and payment deadlines that occurred starting on September 25, 2022 in South Carolina and September 28, 2022 in North Carolina. As a result, affected individuals and businesses will have until February 15, 2023 to file returns and pay any taxes that were originally due during this period. These include:

2021 Individual and Business Returns with Valid Extensions: Individuals that had a valid extension to file their 2021 return due to run out on October 17, 2022 will now have until February 15, 2023 to file. Businesses with extensions also have until February 15, 2023 including, among others, calendar-year corporations whose 2021 extensions run out on October 17, 2022. The IRS noted that because tax payments related to 2021 returns were due on April 18, 2022, those payments are not eligible for an extension.
Tax Year 2022 4th Quarterly Estimated Tax Payment: Tax Year 2022 4th quarter estimated tax payment with a deadline of January 17, 2023 has been extended until February 15, 2023.
Quarterly Payroll and Excise Tax Returns: Quarterly payroll and excise tax returns that are normally due on October 31, 2022 and January 31, 2023, are also extended until February 15, 2023. In addition, in South Carolina, penalties on payroll and excise tax deposits due on or after September 25, 2022 and before October 11, 2022 will be abated as long as the deposits were made by October 11, 2022. In North Carolina, penalties on payroll and excise tax deposits due on or after September 28, 2022, and before October 13, 2022, will be abated as long as the deposits are made by October 13, 2022.

What do I need to do to claim the tax extension?

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Taxpayers do not need to contact the IRS to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

The current list of eligible localities is always available on the disaster relief page on IRS.gov.

Do surrounding areas outside of Florida, North Carolina, and South Carolina qualify for an extension?

The IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers, assisting the relief activities, who are affiliated with a recognized government or philanthropic organization.

How can I claim a casualty and property loss on my taxes if impacted?

Individuals or businesses who suffered uninsured or unreimbursed disaster-related casualty losses can choose to claim them on either the tax return for the year the loss occurred(in this case the 2022 tax return filed in 2023) or the loss can be deducted on the tax return for the prior year. Individuals may also deduct personal property losses that are not covered by insurance or other reimbursements.

Be sure to write the following FEMA declaration number on any return claiming a loss:

DR-4673-FL for Florida
DR-3585-EM-SC for South Carolina
DR-3586-EM-NC for North Carolina

The tax relief is part of a coordinated federal response to the damage caused by the harsh storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.

If you are not a victim, but you are looking to help those in need, this is a great opportunity to donate or volunteer your time to legitimate 501(c)(3) not-for-profit charities who are providing relief efforts for storm victims.

Check back with the TurboTax blog for more updates on disaster relief.

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