In the wake of the devastating wildfires that swept through Hawaii, a helping hand is extended by the Internal Revenue Service (IRS). Individuals and businesses affected by these wildfires, especially those residing in Maui and Hawaii Counties, are receiving a much-needed lifeline.
What You Need to Know:
The IRS is granting an extension of time for filing federal individual and business tax returns, along with tax payments. This relief encompasses any region designated by the Federal Emergency Management Agency (FEMA) as an area impacted by the wildfires. If you’re uncertain about eligibility, you can find the list of qualifying localities on the IRS disaster relief page.
For those hit by the wildfires, various tax filing and payment deadlines from August 8, 2023, to February 15, 2024, are now postponed. This means you have until February 15 to file your returns and settle any taxes that were originally due during this timeframe.
The extension covers a wide range of situations, including:
- Individuals who had valid extensions for their 2022 returns expiring on October 16, 2023 (please note that tax payments for these returns aren’t eligible for relief).
- Those making quarterly estimated income tax payments usually due on September 15, 2023, and January 16, 2024.
- Businesses with quarterly payroll and excise tax returns typically due on October 31, 2023, and January 31, 2024.
- Partnerships, S corporations, and corporations with calendar-year 2022 extensions ending on September 15 or October 16, 2023.
- Tax-exempt organizations with calendar-year extensions ending on November 15, 2023.
Quick Relief for Penalties:
Notably, penalties for failing to deposit payroll and excise taxes between August 8 and September 7, 2023, will be waived if deposits are made by September 7, 2023.
Simplifying the Process:
If you’re an affected taxpayer with an IRS address within the disaster area, filing and penalty relief is automatically applied. No need to reach out; the IRS has got your back.
Getting the Word Out:
For taxpayers who’ve relocated to the disaster area after filing their returns, there’s still hope. If you receive a penalty notice due to the postponement period, just give the IRS a call to have the penalty waived.
Help for Those Beyond:
Even if you’re outside the disaster area but your crucial records for meeting a deadline are there, you’re not alone. Reach out to the IRS at (866) 562-5227. This also includes dedicated workers aiding in relief efforts through government or philanthropic organizations. Source