Disaster Area Deposit Extensions Apply to 2019, 2020 Penalty Relief
The IRS reminds taxpayers living in certain declared disaster areas that the extended time they have to file certain returns includes filing returns to qualify for penalty relief under Notice 2022-36 for returns. of income 2019 and 2020.
The relief, which covers time to file but not pay taxes, is available to taxpayers in areas covered by certain Federal Emergency Management Agency (FEMA) disaster declarations.
Under Notice 2022-36, penalties for late filing of certain tax returns, as well as penalties for not reporting certain required information on Form 1065, Return of partnership income to the United Statesor Form 1120-S, U.S. tax return for an S corporationare waived or reduced if the corresponding statement was filed on or before September 30, 2022. But individuals and households who reside or have businesses in recently declared disaster areas by FEMA have extended the statement filing deadlines for obtain this relief.
Areas with a November 15, 2022 deadline include some counties in Missouri, where storms and flooding have occurred; and in Kentucky, where storms, flooding, landslides and mudslides also occurred, the IRS said.
Other areas with the November deadline include the island of St. Croix in the US Virgin Islands, where people have suffered water shortages and health problems due to an “unprecedented influx of sargassum seagrass,” and members of the Pima-Maricopa Salt River Tribal Nation. Indian community, where severe storms have occurred, the IRS said.
All of these events happened in July.
Areas with a deadline of February 15, 2023 include Florida, North Carolina and South Carolina, where Hurricane Ian hit late last month, and Puerto Rico, which suffered damage from to Hurricane Fiona, also in September.
Also included in the February deadline are areas in Alaska, where storms, flooding and mudslides occurred in September, and Hinds County, Mississippi, for a water crisis beginning on August 30.
The relief provided by Notice 2022-36 applies to a wide range of income tax and information returns for the 2019 and 2020 tax years, including Forms 1040 and 1120 series, as well as other listed in the notice.
The IRS notes that penalty relief for 2019 and 2020 returns is not available in certain situations, such as when a fraudulent return has been filed. For ineligible penalties, such as the default penalty, taxpayers can use existing penalty relief procedures, such as requesting relief under the reasonable cause criteria or the First Time Abate program. IRS.
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