The IRS postponed deadlines to file various individual and business tax returns and make tax payments for taxpayers affected by Hurricane Idalia in Florida and in South Carolina. Affected individuals and businesses in Florida will have until February 15, 2024 to file returns and pay any taxes that were originally due after August 26, 2023 and before February 15, 2024. Similarly, returns and payments for affected individuals in South Carolina that were due after August 29, 2023 and before February 15, 2024 are now due February 15.
Deadlines that have been extended include 2022 individual federal income tax returns due on October 16, 2023. The IRS noted, however, that because federal tax payments related to these 2022 returns were due on April 18, 2023, those payments are not eligible for this relief. In addition, businesses with an original or extended due date including, among others, calendar-year partnerships and S corporations whose 2022 extensions run out on September 15, 2023 and calendar-year corporations whose 2022 extensions run out on October 16, 2023, also qualify for the February 15, 2024 deadline. Quarterly payroll and excise tax returns normally due on October 31, 2023, and January 31, 2024 also qualify for the February 15, 2024 deadline.
The February 15, 2024 deadline also applies to the federal quarterly estimated tax payments for the third and fourth quarters of 2023, normally due on September 15, 2023 and January 16, 2024, respectively. In addition, penalties on payroll and excise tax deposits due during the applicable period will be fully abated as long as the tax deposits are made by February 15, 2024.
In South Carolina, the covered disaster area consists of all 46 counties. In Florida, the covered disaster area consists of Alachua, Baker, Bay, Bradford, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Hardee, Hernando, Hillsborough, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Nassau, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, Sumter, Suwannee, Taylor, Union, Volusia and Wakulla counties.
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. An affected taxpayer who receives a late filing or late payment penalty notice from the IRS for a filing or payment due during the postponement period should call the number on the notice to have the penalty abated. Taxpayers impacted by the disaster who reside or have a business located outside the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief.
Taxpayers in a federally designated covered disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred (2023) or the prior year (2022). Generally, taxpayers may deduct personal property casualty losses that are not covered by insurance or other reimbursement.
For assistance with the above or other matters, please contact your ORBA advisor.
For more information about the IRS’s disaster relief announcement, please contact Michael Loesevitz at [email protected] or 312.670.7444.