6/10/2021
The Internal Revenue Service announced on June 10 that victims of severe storms and flooding that began May 17, 2021 now have until August 16, 2021, 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 Ascension, Calcasieu, East Baton Rouge, Iberville, and Lafayette Parishes qualify for tax relief.
The recent disaster declaration issued by the Federal Emergency Management Agency permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area.
Certain deadlines falling on or after May 17, 2021, and before August 16, 2021 are postponed through August 16, 2021. This includes the deadline, previously postponed until June 15, for filing 2020 individual income tax returns and paying any tax due. Taxpayers also have until August 16 to make 2020 IRA contributions.
The deadline remains June 15 for the rest of Louisiana.
The August 16, 2021 deadline applies to the second quarter payment normally due on June 15. Also, penalties on deposits due on or after May 17, 2021 and before June 1, 2021, will be abated as long as the tax deposits were made by June 1, 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, people 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; however, 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.
Covered Disaster Area
The localities listed above constitute a covered disaster area (Treas. Reg. §301.7508A-1(d)(2)) and are entitled to the relief below.
Affected Taxpayers
Taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts include those who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the covered disaster area. People not in the covered disaster area, but having records necessary to meet a deadline that are in the covered disaster area, are also entitled to relief. All relief workers affiliated with a recognized government or philanthropic organization assisting in 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 also entitled to relief.
Affected taxpayers have until August 16, 2021 to file most tax returns that have either an original or extended due date occurring on or after May 17, 2021 and before August 16, 2021 including:
Individual
Corporate
Estate and trust income tax returns
Partnership returns
S corporation returns
Trust returns
Estate, gift, and generation-skipping transfer tax returns
Annual information returns of tax-exempt organizations
Employment and certain excise tax returns
Affected taxpayers that have an estimated income tax payment originally due on or after May 17, 2021, and before August 16, 2021 are postponed through August 16, 2021 will not be subject to penalties for failure to pay estimated tax installments as long as the payments are made on or before August 16, 2021.
Taxpayers have until August 16, 2021 to perform other time-sensitive actions that are due to be performed on or after May 17, 2021 and before August 16, 2021.
This relief includes:
The filing of Form 5500 series returns that were required to be filed on or after May 17, 2021 and before August 16, 2021 are postponed through August 16, 2021
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.
The postponement of time to file and pay does not apply to information returns:
W-2, 1094, 1095, 1097, 1098 or 1099 series
Forms 1042-S, 3921, 3922 or 8027
Employment and excise tax deposits.
Penalties on deposits due on or after May 17, 2021 and before June 1, 2021 will be abated as long as the tax deposits were made by June 1, 2021.
Casualty Losses
Affected taxpayers 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.
They can deduct personal property losses that are not covered by insurance or other reimbursements. When claiming the disaster loss on a 2020 return, they should put the Disaster Designation, "Louisiana Severe Storms and Flooding" in bold letters at the top of the form and include the disaster declaration number, FEMA 4606-DR, on any return.
See Publication 547 for details
See Form 4684, Casualties and Thefts and its Instructions
Other Relief
The IRS will waive the usual fees and requests for copies of previously filed tax returns for those affected. Taxpayers should put the assigned Disaster Designation "Louisiana Severe Storms and Flooding" 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.
Anyone affected who is contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can give appropriate consideration to their case.
Resources:
IRS operations and services page at IRS.gov/coronavirus has information on services available
Forms and publications can be downloaded from the IRS website