The IRS Gives Tax Relief to Those Affected by Hurricane Harvey

The IRS is providing tax relief to those affected by Hurricane Harvey. As a result, taxpayers will have extra time to file certain individual and business tax returns, and to make certain tax payments.

The tax relief postpones various tax filing and payment deadlines that fall on or after Aug. 23, 2017 and before Jan. 31, 2018. Those who qualify for this additional extension have until January 31, 2018 to file tax returns and pay any taxes that were originally due during this period. This includes an additional filing extension for calendar year C corporations and individuals with valid extensions that run out on Oct. 16, 2017, partnerships and S corporations with valid extensions that run out on Sep. 15, 2017, and trusts and estates with valid extensions that run out on Oct. 2, 2017.

The additional extension includes the Sep. 15, 2017 and Jan. 16, 2018 deadlines for making quarterly estimated tax payments.  The IRS noted, however, that because tax payments related to 2016 individual tax returns were originally due on April 18, 2017, those payments are not eligible for this relief.

A variety of business tax deadlines are also affected, including the Oct. 31 deadline for quarterly payroll and excise tax returns. In addition, the IRS is waiving late-deposit penalties for federal payroll and excise tax deposits normally due on or after Aug. 23 and before Sep. 7, if the deposits are made by Sep. 7, 2017.

This extension is available to affected taxpayers in federally declared disaster areas1.  As of 10:50 a.m. on 9/5/17, the following Texas counties are in a covered disaster area:

Aransas, Austin, Bastrop, Bee, Bexar, Brazoria, Burleson, Caldwell, Calhoun, Chambers, Colorado, Comal, Dallas, De Witt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Grimes, Guadalupe, Hardin, Harris, Jackson, Jasper, Jefferson, Jim Wells, Karnes, Kleberg, Lavaca, Lee, Liberty, Madison, Matagorda, Milam, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Augustine, San Jacinto, San Patricio, Tarrant, Travis, Tyler, Victoria, Walker, Waller, Washington, and Wharton Counties.

The IRS will continue to monitor the storm’s aftermath and may provide additional relief for other affected areas in the near future.

Those affected can be:

• Individuals.
• C corporations.
• S corporations.
• Partnerships.
• Trusts and estates.

A taxpayer does not have to be located in a federally declared disaster area to be an “affected taxpayer.” Taxpayers are “affected” if records necessary to meet a filing or payment deadline postponed during the relief period are located in a covered disaster area.  However, for someone with an address outside the covered counties to receive this additional extension, the taxpayer must:

• Call the Disaster Assistance Hotline at 1-866-562-5227.
• Explain that your necessary records are located in a covered disaster area.
• Provide the FEMA Disaster Number of the county where the affected partnership or S Corporation is located2.

1For an up-to-date list of counties granted extensions and for more information, visit: https://www.irs.gov/newsroom/tax-relief-for-victims-of-hurricane-harvey-in-texas

2FEMA Disaster Numbers can be found at: http://www.fema.gov/disasters

Other Helpful Links:

• Full “Relief for Victims of Hurricane Harvey” announcement found at https://www.irs.gov/pub/irs-drop/a-17-11.pdf
• Those who need access to funds held in workplace retirement accounts can learn more here: https://www.irs.gov/newsroom/retirement-plans-can-make-loans-hardship-distributions-to-victims-of-hurricane-harvey
• Those affected by shortages of undyed diesel fuel can learn about the waived penalty here: https://www.irs.gov/newsroom/irs-waives-diesel-fuel-penalty-due-to-hurricane-harvey