The Internal Revenue Service (IRS) announced that Hurricane Ian victims throughout Florida, North Carolina, and South Carolina now have until Feb. 15, 2023, to file various federal individual and business tax returns and make tax payments.
The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This means individuals and households who reside or have a business in Florida or the Carolinas, qualify for tax relief, which is part of a coordinated federal response to the damage caused by Hurricane Ian and based on local damage assessments by FEMA.
The tax relief postpones various tax filing and payment deadlines that occurred starting on Sept. 25, 2022, in South Carolina and Sept. 28, 2022, in North Carolina. As a result, affected individuals and businesses have this extended time to file returns and pay any taxes that were originally due during this period.
This means individuals who had a valid extension to file their 2021 return due to run out on Oct. 17, 2022, will now have until Feb. 15, 2023, to file. The IRS noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief.
For affected areas in Florida and the Carolinas:
- The Feb. 15, 2023, deadline also applies to quarterly estimated income tax payments due on Jan. 17, 2023.
- The quarterly payroll and excise tax returns normally due on Oct. 31, 2022, and Jan. 31, 2023, are also now due on Feb. 15, 2023.
- Businesses with an original or extended due date also have the additional time including, among others, calendar-year corporations whose 2021 extensions run out on Oct. 17, 2022.
- Tax-exempt organizations also have the additional time, including for 2021 calendar-year returns with extensions due to run out on Nov. 15, 2022.
- In Florida, penalties on payroll and excise tax deposits due on or after Sept. 23, 2022, and before Oct. 11, 2022, will be abated as long as the deposits are made by Oct. 11, 2022.
- In South Carolina, penalties on payroll and excise tax deposits due on or after Sept. 25, 2022, and before Oct. 11, 2022, will be abated as long as the deposits are made by Oct. 11, 2022.
- In North Carolina, penalties on payroll and excise tax deposits due on or after Sept.28, 2022, and before Oct. 13, 2022, will be abated as long as the deposits are made by Oct. 13, 2022.
The IRS will work with any taxpayer who lives outside the disaster areas, but whose records necessary to meet a deadline occurring during the postponement period are located in the affected areas. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. These such entities and individuals who have been impacted by Hurricane Ian, but are not physically located in the disaster areas, will need to contact the IRS to claim their tax relief.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster areas. Therefore, these taxpayers do not need to contact the agency to get this relief. Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2022 return normally filed next year), or the return for the prior year (2021).
Need help determining if you qualify for Hurricane Ian related tax relief?