Disaster Relief has Extended Some Corporate Tax Filing Deadlines
Each year, the IRS extends special tax provisions to businesses that have been disaster-impacted. These tax provisions are typically issued when the federal government has declared the business’s geographic area as a major disaster area. If your business is filing Section 179D or Section 45L during the 2023 calendar year, there may be applicable extensions that apply to you if you are impacted by one of these events.
While the IRS relief can vary depending on the impact of the disaster, these tax provisions can include additional time to file returns and pay taxes. This year’s active weather season has resulted in several geographic-based relief extensions for businesses, as well as individuals. As of late September, the following active IRS tax payment provisions have been made:
- California, Alabama, and Georgia – Natural Disaster Extensions: Taxpayers in certain counties of California, Alabama, and Georgia received extensions to Oct. 15, 2023, to file their 2022 Federal tax returns and tax payments that were due on April 18, 2023.
- South Carolina: Hurricane Idalia: Taxpayers in South Carolina and in 49 Florida counties have until Feb. 15, 2024, to file various federal individual and business tax returns and make tax payments. This extension applies to various tax filing and payment deadlines that occurred from Aug. 29, 2023, through Feb. 15, 2024
- Alaska: Flooding: Six regional attendance areas in Alaska qualified for relief due to flooding that began on May 12, 2023. Any tax filing deadlines that fell after this date were postponed to Oct. 16, 2023.
- Hawaii: Wildfires: Businesses located in the counties of Hawaii and Maui, which were impacted by the Hawaii wildfires, now have until Feb. 14, 2024, to file various tax forms and payments.
- Illinois: Severe storms: Twenty Illinois counties received an extension to Oct. 31, 2023, for forms and payments that were due on or after June 29, 2023.
- Mississippi: Severe Storms: Twelve counties in Mississippi received an extension from June 14, 2023, to October 16, 2023, for forms and payments.
- Vermont: Flooding: July flooding extended the deadline for forms and payments due on or after July 7, 2023, for businesses affected in Vermont to Nov. 15, 2023.
While it’s never good news to experience a disaster, there is some good news here: when the IRS extends this relief to taxpayers with properties of record in the affected areas, the relief is automatic. Taxpayers are not required to contact the IRS to obtain it.
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 that falls within a postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
The IRS maintains an updated list of disaster assistance and emergency relief for easy access to see if your business qualifies.