MEMPHIS, Tenn. — The Internal Revenue Service (IRS) has postponed the deadline for victims of the severe storms and tornadoes that struck Tennessee March 31 to April 1, 2023.
The IRS said people and businesses affected by severe storms, straight-line winds and tornadoes in Cannon, Hardeman, Hardin, Haywood, Lewis, Macon, McNairy, Rutherford, Tipton, and Wayne counties qualify for tax relief.
The deadline is now set for July 31, 2023, for those affected to file returns and pay any taxes that were originally due from March 31 to July 31. The IRS said, “This includes 2022 individual income tax returns due on April 18, as well as various 2022 business returns normally due on April 18.”
The IRS said this also means eligible taxpayers have until July 31 to make 2022 contributions to IRAs and health savings accounts.
“The July 31, 2023, deadline also applies to any payment normally due during this period, including quarterly estimated tax payments, quarterly payroll and excise tax returns. In addition, penalties on payroll and excise tax deposits due on or after March 31, 2023, and before April 18, 2023, will be abated as long as the tax deposits are made by April 18, 2023,” said the IRS.
Anyone eligible for the extended deadline who receives a late filing or late payment penalty notice from the IRS should call the telephone number on the notice.
The IRS also said affected taxpayers should file for an extension electronically by April 18, 2023, if they feel they will need more time to complete the tax return before the July 31, 2023, deadline. This can be done for free using IRS Free File. For details about this and other electronic options, visit IRS.gov/Extensions.
The IRS automatically identifies taxpayers located in the covered disaster area. Anyone who lives or has a business outside the covered disaster area but feels they should be eligible should call the IRS disaster hotline at 866-562-5227 to request tax relief.
More from the IRS:
Covered Disaster Area
The localities listed above constitute a covered disaster area for purposes of Treas. Reg. §301.7508A-1(d)(2) and are entitled to the relief detailed below.
Affected Taxpayers
Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.
Under section 7508A, the IRS gives affected taxpayers until July 31, 2023, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after March 31, 2023, and before July 31, 2023, are granted additional time to file through July 31, 2023.
Affected taxpayers that have an estimated income tax payment originally due on or after March 31, 2023, and before July 31, 2023, are postponed through July 31, 2023, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before July 31, 2023.
The IRS also gives affected taxpayers until July 31, 2023, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (December 10, 2018), that are due to be performed on or after March 31, 2023, and before July 31, 2023, are granted additional time to file through July 31, 2023.
This relief also includes the filing of Form 5500 series returns that were required to be filed on or after March 31, 2023, and before July 31, 2023, are postponed through July 31, 2023, in the manner described in section 8 of Rev. Proc. 2018-58. The relief described in section 17 of Rev. Proc. 2018-58, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.
Unless an act is specifically listed in Rev. Proc. 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits. However, penalties on deposits due on or after March 31, 2023, and before April 18, 2023, will be abated as long as the tax deposits were made by April 18, 2023.
Casualty Losses
Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year. See Publication 547 for details. Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684, Casualties and Thefts and its instructions. Affected taxpayers claiming the disaster loss on their return should put the Disaster Designation, “Tennessee, severe storms, straight-line winds and tornadoes”, in bold letters at the top of the form. Be sure to include the FEMA disaster declaration number, FEMA-4701-DR, on any return. See Publication 547 for details.
Other Relief
The IRS will waive the usual fees and requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation, Tennessee, severe storms, straight-line winds and tornadoes in bold letters at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.
Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website, IRS.gov.
