Victims of the New York severe winter storm beginning December 23, 2022, were granted tax relief by the IRS for those areas declared disasters by the Federal Emergency Management Agency (FEMA). The declaration allows the IRS to delay certain tax-filing and tax-payment deadlines for those taxpayers who reside or have a business in the designated disaster areas including Erie and Genesee counties.
Certain deadlines falling on or after December 23, 2022, and before April 18, 2023, will be granted additional time to file by the IRS, including: individual returns, corporate returns, partnership returns, employment tax filings, 5500 retirement plan filings, trust and estate returns, gift and generation skipping transfer tax returns, tax-exempt organization returns and certain excise tax returns.
The April 18, 2023 deadline also applies to quarterly estimated tax payments, normally due on January 17, 2023 and to quarterly payroll and excise tax returns normally due on January 31, 2023. Penalties on payroll and excise tax deposits due on or after December 23, 2022, and before January 9, 2023, will be abated if the tax deposits were made by January 9, 2023.
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 that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty. Generally, the IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. However, affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.
Affected taxpayers in a federally declared disaster area also have the option of claiming disaster-related casualty losses that are not covered by insurance or other reimbursements on their federal income tax return for either the year in which the event occurred or the prior year. Consult with your Tronconi Segarra & Associates tax advisor for more information.
Authored by: Joseph M. Becht, CPA, CGMA, Senior Manager, Tronconi Segarra & Associates LLP