Tennessee Storm Victims Qualify for Tax Relief
Tennessee counties affected by the March 31 and April 1 severe storms (Cannon, Hardeman, Hardin, Haywood, Lewis, Macon, McNairy, Rutherford, Tipton and Wayne) have received tax deadline extensions to July 31, 2023, from the IRS for various federal deadlines and the Tennessee Department of Revenue for the franchise and excise deadline.
The agencies are offering relief to any area designated as a disaster area by the Federal Emergency Management Agency (FEMA) as a result of tornadoes, severe storms and straight-line winds that occurred starting on March 31. Individuals and households that reside or have a business in Cannon, Hardeman, Hardin, Haywood, Lewis, Macon, McNairy, Rutherford, Tipton and Wayne counties qualify. Other areas added later to the disaster area will also qualify for the same relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.
Relief From the IRS
Federal relief postpones various tax filing and payment deadlines that occurred starting on March 31, 2023. Affected individuals and businesses will have until July 31, 2023, to file returns and pay any taxes that were originally due during this period. This includes 2022 individual income tax returns and various business returns due on April 18. Eligible taxpayers will also have until July 31 to make 2022 contributions to their IRAs and health savings accounts.
The July 31 deadline also applies to the quarterly estimated tax payments, normally due on April 18 and June 15.
The July 31 deadline also applies to the quarterly payroll and excise tax returns normally due on April 30, 2023. In addition, penalties on payroll and excise tax deposits due on or after March 31 and before April 18 will be abated as long as the tax deposits are made by April 18, 2023.
Some affected taxpayers may find that they need more time to file beyond the July 31 deadline. If so, the IRS urges them to request the additional time electronically before the original April 18 deadline. Visit IRS.gov/extensions for details. After April 18 and before July 31, disaster area taxpayers can file their extension requests only on paper.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area, so taxpayers do not need to contact the agency to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed in early 2024), or the return for the prior year (the 2022 return normally filed in 2023). Be sure to write the FEMA declaration number 4701-DR on any return claiming a loss. See Publication 547 for details.
For more information, see the IRS Disaster Assistance and Emergency Relief for Individuals and Businesses page.
Relief From the Tennessee Department of Revenue
Franchise and Excise Tax
The Department of Revenue relief postpones the franchise and excise tax filing and payment deadlines that occur starting March 31, 2023. Affected businesses and individuals will have until July 31, 2023, to file returns and make any payments (including quarterly estimated payments) originally due during this period.
The Department will automatically apply these extensions to franchise and excise tax accounts of taxpayers with a primary address on record with the Department in the designated disaster area. Penalties and interest will not be applied to returns filed and payments made on or before this extended due date. These extensions will not alter due dates or extend due dates that otherwise fall after July 31, 2023.
If an affected taxpayer receives a late filing or late payment penalty notice from the Department, the taxpayer should contact the Department.
Sales and Use Tax, Business Tax, and Other Taxes
Although other tax extensions cannot be applied automatically, the Department will approve, on a case-by-case basis, extension requests from taxpayers who are unable to file returns for other taxes because of the impact of the March 31 and April 1 storms.
Requests should include the business name, entity ID or Tennessee account number, business location, and a brief description of the loss. Requests should be sent to Revenue.DisasterExtension@tn.gov.
Tax Practitioners
Extensions may be granted if taxpayers’ returns are prepared by a practitioner located in the designated disaster area who is unable to file returns or make payments for clients due to the storms. Affected tax professionals should contact the Department.
For more information, visit the Department of Revenue website or call 615-253-0600.