IRS Provides Temporary Tax Relief to Businesses Affected by Kentucky Floods
The IRS is granting an extension for individuals and businesses to file various tax returns and make tax payments for communities in Kentucky recovering from devastating floods. Victims of severe storms, flooding, landslides, and mudslides in Kentucky now have until November 15, 2022, to file various individual and business tax returns and make tax payments, the Internal Revenue Service (IRS) announced.
IRS Extends Tax Return Kentucky Storm and Flood Victims
The tax relief applies to businesses and households that reside or have a business in Breathitt, Clay, Floyd, Johnson, Knott, Leslie, Letcher, Magoffin, Martin, Owsley, Perry, Pike, and Wolfe counties in Kentucky qualify for tax relief.
The tax relief extends various tax filing and payment deadlines that occurred starting on July 26, 2022. As a result, affected individuals and businesses have until November 15, 2022, to file returns and pay any taxes that were originally due during this period.
This includes individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, and will now have until November 15, 2022, to file. The IRS however noted, tax payments related to 2021 returns that were due on April 18, 2022, are not eligible for this relief.
The November 15, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2022, and the quarterly payroll and excise tax returns that are normally due on August 1 and October 31, 2022. Businesses with an original or extended due date also have additional time. This includes calendar-year partnerships and S corporations whose 2021 extensions run out on September 15, 2022, and calendar-year corporations whose 2021 extensions run out on October 17, 2022.
In addition, penalties on payroll and excise tax deposits due on or after July 26 and before August 10, will be abated as long as the deposits are made by August 10, 2022.
The measures by the IRS follow similar moves by state and federal agencies to offer support to those affected by the flooding. The Small Business Administration (SBA) has announced that low-interest disaster loans will be available to businesses and residents in Kentucky.
How Can Affected Businesses Know That They are Entitled to Tax Relief?
The IRS is offering relief to these areas as they are designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. Similar relief will be available to any other area added later by FEMA.
Taxpayers don’t need to contact the agency to get 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 taxpayer should call the number on the notice to have the penalty abated. To get disaster-related details on other returns, payments, and tax-related actions qualifying for the additional time businesses can visit the Disaster Assistance and Emergency Relief for Individuals and Businesses page.
This article, “IRS Provides Temporary Tax Relief to Businesses Affected by Kentucky Floods” was first published on Small Business Trends