Extended Tax Deadline for Hurricane Harvey & Irma Victims

Extended Tax Deadline for Hurricane Harvey & Irma Victims

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As a result of the devastation caused by Hurricane Harvey, the Internal Revenue Service (“IRS”) has designated a number of counties in Texas as federal disaster areas qualifying for assistance.

“Affected” taxpayers [1] generally have until the “extended date” to file most tax returns including individual, C corporation, S corporation, partnership, estate, and trust tax returns, among others. [2]

For the following Texas counties, the onset date of Hurricane Harvey was August 23, 2017 and the extended filing date is January 31, 2018:

Aransas, Austin, Batrop, Bee, Brazoria, Calhoun, Chambers, Colorado, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Hardin, Harris, Jackson, Jasper, Jefferson, Karnes, Kleberg, Lavaca, Lee, Liberty, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio, Tyler, Victoria, Walker, Wharton, and Waller counties.

For the above mentioned Texas counties, the extended date of January 31, 2018 is applicable to:

  • Individuals who have returns on valid extensions due October 16, 2017, and businesses whose returns are on valid extensions and are due September 15, 2017.
  • Quarterly estimated tax payments that were due September 15, 2017 and January 16, 2018;
  • Quarterly payroll and excise tax returns that were due October 31, 2017; and
  • Exempt organizations with an original or extended filing deadline falling within the postponement period.

Relief Expected for Irma Sufferers

Similarly, victims of Hurricane Irma in certain areas of Florida, Puerto Rico and the U.S. Virgin Islands that are designated as federal disaster areas have been given an extended filing deadline of January 31, 2018 as well.  Special tax relief and assistance is available to taxpayers in the Presidential Disaster Areas.

So far, the IRS filing and payment relief applies to the following localities identified by FEMA for Individual Assistance due to Hurricane Irma:

IRS Announcement can be viewed using this link

[1] “Affected” taxpayer (defined by Treasury Regulation 301.7508A-1(d)(1)) includes, among other things: any individual whose principal residence, and any business entity whose principal place of business, is located in the counties designated as disaster areas; an individual who is a relief worker assisting in a covered disaster area; and taxpayers who live outside the disaster area but who kept records within the affected areas, which were needed to meet a deadline occurring within the postponement period.

[2] The postponement of time to file and pay does not apply to information returns, such as Forms W-2, 1098, 1099, 5498, 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Further, the postponement does not apply to employment and excise tax deposits.  But penalties for failure to make timely employment and excise deposits can be abated in certain cases.

 

For additional information, fill out the form below and a member of our Tax Services team will follow up with you.

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To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

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