The Internal Revenue Service has announced tax payment deferral options for individuals and businesses impacted by Hurricane Idalia.
Payments can be deferred until Feb. 15, 2024.
The Epoch Times reported the deadline applies to “individuals who had a valid extension to file their 2022 return due to run out on Oct. 16, 2023.”
A statement from the IRS read: “Quarterly estimated income tax payments normally due on Sept. 15, 2023, and Jan. 16, 2024; quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, 2024; and calendar-year partnerships and S corporations whose 2022 extensions run out on Sept. 15, 2023,” are eligible for deferral.
The IRS statement added:
“In addition, penalties for the failure to make payroll and excise tax deposits due on or after Aug. 27, 2023, and before Sept. 11, 2023, will be abated as long as the deposits are made by Sept. 11, 2023.
“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.
“Taxpayers have extra time—up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file)—to make the election. Be sure to write the FEMA declaration number, DR-3596-EM, on any return claiming a loss.”
The IRS announced that individual retirement arrangements (IRAs) are also eligible for special consideration. The agency wrote: “A taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.”
The Epoch Times noted that “as qualified disaster relief payments are excluded from gross income, taxpayers can deduct personal, family, living, or funeral expenses, along with repair or rehabilitation of their home and contents received from a government agency from their gross income amounts.”
Presently, 46 of Florida’s 67 counties would qualify for relief, according to new IRS guidelines.
The decision was prompted after Idalia, a Category 3 hurricane, swept across Florida’s Big Bend region on Wednesday. The storm packed 125 mph winds and a 16’ water surge — leaving more than 300,000 without power.
CoreLogic estimates more than 800,000 homes were damaged — representing potential damages exceeding of $238 billion.
Early planning and evacuation orders minimized the loss of human life — amazingly, there were only three reported fatalities.
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