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 220.127.116.11.6.2.1(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 | firstname.lastname@example.org
Harve Lewis | +1 (202) 533-6024 | email@example.com
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