Earlier last month, people in South Florida (Broward County) were majorly affected by tornadoes and flooding. This Florida storm was very intense, to the extent that the Federal Emergency Management Agency (FEMA) declared it as a disaster on April 27th. Whether victims lost valuable items/property or ended up stuck in an airport, the IRS wants to help. They announced today that victims of the Florida storm now have until August 15th, 2023, to “file various federal individual and business tax returns and make tax payments.”
Which kinds of tax returns are eligible for the extension?
Section 7508A states that most tax returns can be filed by the August 15th extension. This includes “individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns.” Unfortunately, the extension to file and pay taxes does not apply to information returns in the W-2, 1094, 1095, 1097, 1098, or 1099 series.
How will I know if I qualify for the extension?
According to the IRS, taxpayers affected by disasters include an individual, any business entity or sole proprietor, and any shareholder in an S corporation. Even if you weren’t affected directly by the Florida storm, the IRS will still consider you an affected taxpayer under certain circumstances. For example, if your tax preparer lives in the disaster area and was unable to file your taxes, you may qualify for the extension as well. If this is your situation, call the Disaster Hotline to explain what happened and provide the FEMA Disaster Number.
What if I didn’t file for an extension by the deadline?
Even if you were unable to file for an extension by April 18th, the IRS will still grant the extension of August 15th. In order to claim the disaster on your return, you should put the Disaster Designation, “Florida, severe storms, tornadoes and flooding”, in bold letters at the top of the form. You should also include the FEMA Disaster Number, which is FEMA-4709-DR.
What should I do if I receive a late penalty from the IRS?
If you were affected by the Florida storm, but still receive a late penalty from the IRS, there is one simple step that you must take. The IRS advises that the taxpayer should call the telephone number on the notice to have them abate the penalty if the payment or deposit due date falls within the postponement period. Also, please remember that if you were affected from outside of the designated disaster area, you have to call the Disaster Hotline to request tax relief.
What if I need more time after the extension deadline?
If the extension deadline of August 15th, 2023, does not work for you, the process would be similar to if you were filing for an extension in April. Although, your extension request must be filed on paper using Form 4868 — e-file options for extension requests are no longer available after April 18th. Keep in mind that this extension would only be for filing, and that you would still have to pay by August 15th.
If you or anyone you know were affected by this Florida storm, Jacobwise & Co would like to send our well wishes. If assistance or advice is needed, we are just one phone call away. Feel free to contact us or visit our office. We look forward to hearing from you!