Severe storms, flooding, and the threat of a dam breach wreaked havoc on parts of Connecticut this month. In the wake of this disaster, the IRS has stepped in to offer much-needed tax relief to affected individuals and businesses.
Who Qualifies for Relief?
Tax relief is available to any individual or business located in areas designated by the Federal Emergency Management Agency (FEMA) as a disaster area. Currently, this includes all of New London County, encompassing the Mohegan Tribal Nation and Mashantucket Pequot Tribal Nation. However, the IRS will continue to expand assistance to those areas added later.
What Deadlines Are Extended?
The IRS has graciously extended various tax filing and payment deadlines for eligible taxpayers impacted by the Connecticut storms. These deadlines primarily cover the time period between January 10, 2024, and June 17, 2024 (the “postponement period”). This means that if you were originally due to file or pay taxes during this period, you now have until June 17, 2024, to file your taxes without incurring penalties.
Specific Deadlines to Remember:
- Individual income tax returns and payments: Originally due on April 15, 2024, these deadlines are now extended to June 17, 2024.
- Estimated tax payments: The first quarter estimated tax payment for 2024, originally due on April 18, 2024, is now due on June 17, 2024. Additionally, taxpayers who typically make quarterly estimated tax payments can opt to postpone all 2024 estimated tax payments until June 17, 2024, and file their 2023 return with their total estimated tax amount due by that date.
- Business tax returns: Various business tax returns that were originally due during the postponement period now have a deadline of June 17, 2024. This includes returns for corporations, partnerships, S corporations, trusts, and estates.
- Excise tax and payroll tax returns: Quarterly excise tax returns and quarterly payroll tax returns due during the postponement period are also extended to June 17, 2024.
Additional Measures for Tax Relief:
- Penalty and interest abatement: The IRS will automatically waive penalties and interest charges for eligible taxpayers who were unable to file or pay their taxes on time due to the disaster.
- Extension to file extensions: If you originally filed for an extension to file your 2023 tax return before the disaster struck, you will automatically receive an additional extension until October 15, 2024.
- Casualty losses: Taxpayers may be able to claim casualty losses on their tax returns for personal property damaged or destroyed in the storm.
Seeking Assistance:
The IRS encourages affected taxpayers to contact them if they have any questions or need assistance navigating the tax relief available. You can reach the IRS Disaster Hotline at 866-562-5227, or visit the IRS website at https://www.irs.gov/newsroom/tax-relief-in-disaster-situations for more information and resources.
This article is intended for informational purposes only and should not be construed as tax advice. Please consult with a qualified tax professional for guidance specific to your individual situation.
