IRS relief, South Carolina taxpayers affected by flooding

IRS relief, taxpayers affected by flooding

The IRS today issued a release announcing that South Carolina individual and business taxpayers affected by flooding and that previously received a tax-filing extension to October 15, will have until February 16, 2016, to file their returns and pay any taxes due.

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The IRS release—IR-2015-112—also states that persons assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief.

Tax relief

The Federal Emergency Management Agency (FEMA) this week issued a disaster declaration for individual assistance. Following this, the IRS announced that tax relief is being made available to those taxpayers affected by flooding in Berkeley, Charleston, Clarendon, Dorchester, Georgetown, Horry, Lexington, Orangeburg, Richland, Sumter and Williamsburg counties. Other locations may be added, based on damage assessments by FEMA.

The tax relief postpones various tax filing and payment deadlines that occurred starting on October 1, 2015, and gives eligible individual and business taxpayers until February 16, 2016, to file their returns and pay any taxes due.  This relief also applies to:

  • The January 15, 2016 deadline for making quarterly estimated tax payments
  • Business tax deadlines including the November 2, 2015, and February 1, 2016 deadlines for quarterly payroll and excise tax returns
  • Late-deposit penalties for federal payroll and excise tax deposits normally due on or after October 1 and before October 16, provided the deposits are made by October 16, 2015

KPMG observation

The IRS release does not provide relief from the December 15 deadline for estimated tax payments by corporations.

Interest, penalty abatement, other relief

The IRS announced that any interest, late-payment or late-filing penalty that would otherwise apply would be abated.

The tax relief will automatically be provided to any taxpayer with an IRS address of record located in the disaster area. The IRS release states that taxpayers need not contact the IRS to obtain relief.

Taxpayers who live outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area can contact the IRS about qualifying for relief.

Finally, the IRS release states that taxpayers who incurred uninsured or unreimbursed disaster-related losses may claim them on either last year’s or this year’s return. 

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