IRS Announces Tax Relief for Victims of Severe Storms and Flooding in Tennessee
Following the recent disaster declaration issued by the Federal Emergency Management Agency (FEMA), the IRS announced that Tennessee victims of Severe Storms and Flooding that occurred on Aug. 21, 2021, now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments.
Individuals and households affected by Severe Storms and Flooding that reside or have a business in Dickson, Hickman, Houston and Humphreys counties qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 21, 2021, and before Jan. 3, 2022, are postponed through Jan. 3, 2022. This means that individuals who had a valid extension to file their 2020 returns, due to run out on Oct. 15, will now have until Jan. 3, 2022, to file.
The Jan. 3, 2022, deadline applies to the quarterly estimated tax payment, normally due on Sept. 15. Also, penalties on deposits due on or after Aug. 21, 2021, and before Sept. 7, 2021, will be abated as long as the tax deposits were made by Sept. 7, 2021.
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 that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief.
For more details, visit the IRS website.