Business and Legal Insights

On September 29, 2022, the Internal Revenue Service (the “IRS”) announced certain tax relief for victims of Hurricane Ian in Florida. Following the recent disaster declaration issued by the Federal Emergency Management Agency (“FEMA”), the IRS is offering relief to any area designated by FEMA. This means that individuals and households that reside or have a business anywhere in the state of Florida will qualify for tax relief.

The tax relief includes an extension until February 15, 2023, to file various federal individual and business tax returns and make tax payments. Specifically, certain deadlines falling on or after September 23, 2022, and before February 15, 2023, will be postponed through February 15, 2023.

For example, individuals who 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. The IRS noted, however, that because tax payment related to these 2021 returns were due on April 18, 2022, those payments are not eligible for relief.

The February 15, 2023, extension will also apply to the quarterly estimated tax payments, normally due on January 17, 2023 and to the quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023. Businesses with an original or extended due date will also be granted the extension, including calendar-year corporations whose 2021 extensions run out on October 17, 2022.

Further, any 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 tax deposits are made by October 10, 2022.

The IRS plans to automatically identify taxpayers located in the covered disaster area and apply filing and payment relief. However, affected taxpayers who reside or have a business located outside the covered disaster area are encouraged to call the IRS disaster hotline at 866-562-5227 to request tax relief.

The text of the IRS announcement is included in the link below for your ease of reference:

IRS: Hurricane Ian victims in Florida qualify for tax relief; Oct. 17 deadline, other dates extended to Feb. 15 | Internal Revenue Service

If you may be impacted by this IRS announcement, we invite you to contact the Tax Practice Group as soon as possible so that we can discuss your particular situation and the most advantageous manner of proceeding regarding the issues discussed in this announcement.