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Disaster victims in South Dakota and Commonwealth of the Northern Mariana Islands qualify for tax relief

IRS has announced on its website that victims of severe storms, straight-line winds, and flooding in a reservation of South Dakota, and victims of Typhoon Soudelo in a part of the Commonwealth of the Northern Mariana Islands, that are designated as a federal disaster areas qualifying for individual assistance have more time to make tax payments and file returns.Certain other time-sensitive acts also are postponed.This article summarizes the relief that’s available and includes up-to-date disaster area designations and extended filing and deposit dates for all areas affected by storms, floods and other disasters in 2015.

Who gets relief.Only taxpayers considered to be affected taxpayers are eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts.Affected taxpayers are those listed in Reg. § 301.7508A-1(d)(1) and thus include:

Who gets relief.Only taxpayers considered to be affected taxpayers are eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts.Affected taxpayers are those listed in Reg. § 301.7508A-1(d)(1) and thus include:

…any individual whose principal residence, and any business entity whose principal place of business, is located in the counties designated as disaster areas;
…any individual who is a relief worker assisting in a covered disaster area, regardless of whether he is affiliated with recognized government or philanthropic organizations;
…any individual whose principal residence, and any business entity whose principal place of business, is not located in a covered disaster area, but whose records necessary to meet a filing or payment deadline are maintained in a covered disaster area;
…any estate or trust that has tax records necessary to meet a filing or payment deadline in a covered disaster area; and
…any spouse of an affected taxpayer, solely with regard to a joint return of the husband and wife.

What may be postponed.Under Code Sec. 7508A, IRS gives affected taxpayers untilthe extended date (specified by county, below)to file most tax returns (including individual, estate, trust, partnership, C corporation, and S corporation income tax returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date falling on or afterthe onset date of the disaster (specified by county, below),and on or beforethe extended date.

IRS also gives affected taxpayers untilthe extended dateto perform other time-sensitive actions described in Reg. § 301.7508A-1(c)(1) and Rev Proc 2007-56, 2007-34 IRB 388, that are due to be performed on or afterthe onset date of the disaster,and on or beforethe extended date.This relief also includes the filing of Form 5500 series returns, in the way described in Rev Proc 2007-56, Sec. 8. Additionally, the relief described in Rev Proc 2007-56, Sec. 17, relating 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 in the W-2, 1098, 1099 or 5498 series, or to Forms 1042-S or 8027.Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause.Likewise, the postponement does not apply to employment and excise tax deposits.IRS, however, will abate penalties for failure to make timely employment and excise deposits, due on or afterthe onset date of the disaster,and on or beforethe deposit delayed date (specified by county, below),provided the taxpayer made these deposits bythe deposit delayed date.

Affected areas and dates for storms, floods and other disasters occurring in 2015 (or in 2014, with extended dates going into 2015) that are federal disaster areas qualifying for individual assistance, as published on IRS’s website, are carried below.

RIA observation:Effective for disasters declared in tax years beginning after Dec. 31, 2007, the term “federally declared disaster” replaced the previously used “presidential disaster area” term (see Code Sec. 1033(h)(3), as amended by Sec. 706(d)(1), Div. C, P.L. 110-343).The new term is substantially the same as the definition of “presidentially declared disaster” under former law.(T.D. 9443, 01/4/2009, see Weekly Alert ¶  1  01/22/2009)

Arkansas:The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, straight-line winds, and flooding that took place beginning on May 7, 2015: Crawford, Garland, Howard, Jefferson, Little River, Miller, Perry, Sebastian, and Sevier counties.

For these Arkansas counties, the onset date of the disaster was May 7, 2015, the extended date is Aug. 31, 2015 (which includes the May 15 deadline for many tax-exempt organizations to file their annual Form 990, the June 15 deadline for making quarterly estimated tax payments, and a variety of business tax deadlines including the July 31 deadline for quarterly payroll and excise tax returns).The deposit delayed date was May 22, 2015.

California:The following are federal disaster areas qualifying for individual assistance on account of the earthquake that occurred on Aug. 24, 2014: Napa and Solano counties.

For these California counties, the onset date of the disaster was Aug. 24, 2014, the extended date was Jan. 15, 2015 (which includes corporations and businesses that previously obtained an extension until Sept. 15, 2014, to file their 2013 returns and individuals and businesses that received a similar extension until Oct. 15; and also includes the estimated tax payment for the third quarter of 2014, which would normally be due Sept. 15).The deposit delayed date was Sept. 8, 2014.

Commonwealth of the Northern Mariana Islands:The following is a federal disaster area qualifying for individual assistance on account of Typhoon Soudelor that began on Aug. 1, 2015: Saipan island.

For this island of the Commonwealth of the Northern Mariana Islands, the onset date of the disaster was Aug. 1, 2015, the extended date is Nov. 30, 2015.The deposit delayed date is Aug. 17, 2015.

Kentucky:The following are federal disaster areas qualifying for individual assistance on account of storms, tornadoes, flooding, landslides, and mudslides that took place beginning on Apr. 2, 2015: Bath, Bourbon, Carter, Elliott, Franklin, Jefferson, Lawrence, Madison, Rowan and Scott counties.

For these Kentucky counties, the onset date of the disaster was Apr. 2, 2015, the extended date was July 31, 2015 (which includes the Apr. 15 deadline for filing 2014 individual income tax returns, making income tax payments, and making 2014 contributions to an individual retirement account (IRA); includes the May 15 deadline for many tax-exempt organizations to file their annual Form 990; the June 16 deadline for making quarterly estimated tax payments; a variety of business tax deadlines that are also affected, including the April 30 and July 31 deadlines for quarterly payroll and excise tax returns).The deposit delayed date was Apr. 17, 2015.

Michigan:The following are federal disaster areas qualifying for individual assistance on account of severe storms and flooding that began on Aug. 11, 2014: Macomb, Oakland, and Wayne counties.

For these Michigan counties, the onset date of the disaster was Aug. 11, 2014, the extended date was Jan. 15, 2015 (which includes corporations and businesses that previously obtained an extension until Sept. 15, 2014, to file their 2013 returns and individuals and businesses that received a similar extension until Oct. 15; and the estimated tax payment for the third quarter of 2014, which would normally be due Sept. 15).The deposit delayed date was Aug. 26, 2014.

Oklahoma:The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, straight-line winds and flooding that took place beginning on May 5, 2015: Adair, Atoka, Beckham.Bryan, Caddo, Canadian, Carter, Cherokee, Choctaw, Cleveland, Coal, Comanche, Cotton, Delaware, Garvin, Grady, Hughes, Jefferson, Johnston, Kiowa, Latimer, Le Flore, Lincoln, Logan, Love, Marshall, Mayes, McClain, McCurtain, McIntosh, Murray, Okfuskee, Oklahoma, Okmulgee, Ottawa, Pittsburg, Pontotoc, Pottawatomie, Pushmataha, Rogers, Seminole, Stephens, Tillman, Tulsa, and Wagoner counties.

For these Oklahoma counties, the onset date of the disaster was May 5, 2015, the extended date is Aug. 31, 2015 (which includes the May 15 deadline for many tax-exempt organizations to file their annual Form 990, the June 15 deadline for making quarterly estimated tax payments, and a variety of business tax deadlines including the July 31 deadline for quarterly payroll and excise tax returns).The deposit delayed date was May 20, 2015.

South Dakota:The following is a federal disaster area qualifying for individual assistance on account of severe storms, straight-line winds, and flooding that began on May 8, 2015: Pine Ridge Indian Reservation.

For this South Dakota reservation, the onset date of the disaster was May 8, 2015, the extended date is Aug. 31, 2015 (which includes the May 15 deadline for many tax-exempt organizations to file their annual Form 990, the June 15 deadline for making quarterly estimated tax payments, and a variety of business tax deadlines including the July 31 deadline for quarterly payroll and excise tax returns).The deposit delayed date was May 26, 2015.

Texas:The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, straight-line winds and flooding that took place beginning on May 4, 2015: Angelina, Bastrop, Blanco, Bowie, Brazoria, Caldwell, Cherokee, Cooke, Dallas, Denton, Eastland, Ellis, Erath, Fort Bend, Fannin, Fayette, Frio, Gaines, Grayson, Guadalupe, Harris, Harrison, Hays, Henderson, Hidalgo, Hood, Jim Wells, Johnson, Liberty, Madison, Milam, Montague, Montgomery, Navarro, Nueces, Red River, Rusk, Shelby, Smith, Travis, Trinity, Van Zandt, Walker, Wharton, Wichita, Williamson, and Wise counties.

For these Texas counties, the onset date of the disaster was May 4, 2015, the extended date is Nov. 2, 2015 (which includes the May 15 deadline for many tax-exempt organizations to file their annual Form 990, the June 15 and Sept. 15 deadlines for making quarterly estimated tax payments, and a variety of business tax deadlines including the July 31 deadline for quarterly payroll and excise tax returns).The deposit delayed date was May 19, 2015.

Wyoming:The following are federal disaster areas qualifying for individual assistance on account of severe storms and flooding that took place beginning on May 24, 2015: Johnson and Niobrara counties.

For these Wyoming counties, the onset date of the disaster was May 24, 2015, the extended date is Aug. 31, 2015 (which includes the June 15 deadline for making quarterly estimated tax payments and a variety of business tax deadlines, including the July 31 deadline for quarterly payroll and excise tax returns).The deposit delayed date was June 8, 2015.

References:For postponement of tax deadlines due to disasters, see FTC 2d/FIN ¶  S-8500  ; United States Tax Reporter ¶  75,08A4  ; TaxDesk ¶  570,306  ; TG ¶  1944  .