The IRS is giving more time extensions, this time to Hurricane Ian victims in both North Carolina and South Carolina. They now have until February 15, 2023 to file various federal individual and corporate tax returns and make tax payments. This is similar to the aid announced last week for Ian victims in Florida. The IRS provides assistance to any area designated by the Federal Emergency Management Agency (FEMA). This means that individuals and households living or operating a business anywhere in both the Carolinas and Florida are eligible for tax relief. The current list of eligible places is always available on the disaster relief page on IRS.gov.
The tax relief postpones several tax filing and payment deadlines that occurred from September 25, 2022 in South Carolina and September 28 in North Carolina. As a result, affected individuals and businesses have until February 15, 2023 to file returns and pay any taxes originally due during this time. Individuals who had a valid extension to file their 2021 return, which expires on October 17, 2022, now have until February 15, 2023 to file their return. But because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this deduction.
The February 15, 2023 deadline also applies to quarterly estimated income tax payments due on January 17, 2023, and the quarterly payroll and tax returns normally due on October 31, 2022 and January 31, 2023. an original or extended expiration date also has the additional time, including, but not limited to, calendar year companies whose renewals for 2021 expire on October 17, 2022. Likewise, tax-exempt organizations also have the extra time, also for the calendar year 2021 returns with renewals expiring on November 15, 2022.
Additionally, in South Carolina, penalties for payroll deposits and excise taxes due on or after September 25, 2022 and before October 11, 2022 will be reduced as long as the deposits are made before October 11, 2022. North Carolina, penalties on payroll deposits and excise taxes due on or after September 28, 2022 and before October 13, 2022 will be eliminated as long as the deposits are made before October 13, 2022. IRS emergency response page provides details about other returns, payments, and tax-related actions that qualify for the extra time.
Notably, the IRS offers automatic filing and penalty relief to any taxpayer with a registered IRS address in the disaster area. Therefore, taxpayers do not need to contact the agency to get this exemption. However, if an affected taxpayer receives a late filing or late payment penalty from the IRS with an original or extended filing, payment, or down payment date that falls within the deferral period, the taxpayer must call the number on the notice to collect the penalty. get declined.
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose data necessary to meet a deadline that occurs during the deferral period is in the affected area. Eligible taxpayers living outside the disaster area should contact the IRS at 866-562-5227. This also includes employees who support the relief activities and who are affiliated with a recognized government or philanthropic organization.
Individuals and businesses in a federally declared disaster area who have incurred uninsured or unreimbursed disaster-related losses may choose to claim them on the return for the year in which the damage occurred (in this case, the 2022 return that normally follows year is filed), or the declaration for the previous year (2021). Be sure to write the FEMA return number — DR-3585-EM-SC for South Carolina or DR-3586-EM-NC for North Carolina — on any return claiming a loss. To see publication 547 for details.
The tax relief is part of a coordinated federal response to the damage caused by Hurricane Ian and is based on local damage assessments by FEMA. For disaster recovery information, go to: rampassistance.gov.