The IRS today issued a release announcing that taxpayers affected by Hurricane Irma in the entire State of Georgia now have until January 31, 2018, to file certain individual and business tax returns and to make certain tax payments.
The IRS release—IR-2017-156—explains that the tax relief includes additional time for taxpayers with valid extensions that expire on October 16, and for businesses with extensions that expired on September 15. This tax relief “parallels relief previously granted” to taxpayer affected by Hurricane Irma throughout Florida and in parts of Puerto Rico and the Virgin Islands. It also parallels relief granted to Hurricane Harvey victims in parts of Texas.
For businesses and others, the tax relief concerns:
Today’s IRS release states that late-deposit penalties for federal payroll and excise tax deposits normally due during the first 15 days of the disaster period will be waived. The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Thus, taxpayers do not need to contact the IRS for this relief.
The IRS release explains that if, however, 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 is directed to call the number on the notice to have the penalty abated.
More information about the disaster-related tax relief is available on the IRS website. The broad scope of relief is provided by section 7508A and its regulations, in particular Reg. section 301.7508A-1(b) and (c).
In addition, taxpayers who do not reside in one of the affected areas may still obtain relief if their necessary records are located within an affected area or their tax advisor or tax return preparer is located in a location affected by the storm. See IRM 188.8.131.52.6.2.1(4)(A), which specifically includes a taxpayer’s “responsible tax professional” being located in the disaster area. This would be especially true if the responsible tax professional possesses the relevant books and records required for preparing a filing.
For more information, contact a tax professional with KPMG’s Washington National Tax:
Larry Mack | +1 (202) 533-3381 | email@example.com
Harve Lewis | +1 (202) 533-6024 | firstname.lastname@example.org
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.