The IRS today announced tax relief for individual and business taxpayers in parts of Florida, Puerto Rico, and the U.S. Virgin Islands that were affected by Hurricane Irma.
The IRS reported that filing and payment relief is provided to taxpayers in the following areas (updated by the IRS on September 14, 2017):
According to the IRS webpage dedicated to Hurricane Irma relief, the IRS stated that it was “monitoring the situation closely to resolve potential tax administration issues as they are identified.”
The IRS release—IR-2017-150 (September 12, 2017)—states that taxpayers affected by the storm have until January 31, 2018, to file certain individual and business tax returns and to make certain tax payments. The IRS relief includes:
Taxpayers do not need to contact the IRS for this relief. 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 falling within the postponement period, the taxpayers are to call the telephone number on the notice to have the penalty abated.
The IRS stated that the relief provided in today’s release “parallels” the relief previously granted to victims of Hurricane Harvey. Read TaxNewsFlash-United States
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 22.214.171.124.6.2.1(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.
The IRS today announced that section 401(k) plans and similar employer-sponsored retirement plans can make loans and hardship distributions to victims of Hurricane Irma and members of their families. Read TaxNewsFlash-United States.
The IRS also announced that because of shortages of undyed diesel fuel caused by Hurricane Irma, it will not impose a penalty when dyed diesel fuel is sold for use or is used on the highway in Florida. This relief is effective September 6, 2017, and will remain in effect through September 22, 2017. Read TaxNewsFlash-United States
For more information, contact a tax professional with KPMG’s Washington National Tax:
Larry Mack | +1 (202) 533-3381 | firstname.lastname@example.org
Harve Lewis | +1 (202) 533-6024 | email@example.com
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