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Disaster Relief

More Disaster Victims in Louisiana Qualify for Tax Relief

Thomson Reuters Tax & Accounting  

Thomson Reuters Tax & Accounting  

Victims of Hurricane Laura that took place in parishes of Louisiana have more time to make tax payments and file returns if they are affected taxpayers in counties that have been designated as federal disaster areas qualifying for individual assistance. 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 in 2020 by storms, floods and other disasters.

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 until the 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 after the onset date of the disaster (specified by county, below), and on or before the extended date. IRS also gives affected taxpayers until the extended date to 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 after the onset date of the disaster, and on or before the 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 after the onset date of the disaster, and on or before the deposit delayed date (specified by county, below), provided the taxpayer made these deposits by the deposit delayed date.

Affected areas and dates for storms, floods and other disasters occurring in 2019 and 2020 that are federal disaster areas qualifying for individual assistance, as published on IRS’s website, are listed below.  

California: The following are federal disaster areas qualifying for individual assistance on account of the California wildfires that began on Aug. 14, 2020: Butte, Lake, Monterey, Napa, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, and Yolo counties.

For these California counties, the onset date of the disaster was Aug. 14, 2020, and the extended date is Dec. 15, 2020 (which applies to the individuals who had a valid extension to file their 2019 return due to run out on Oct. 15, 2020, who will now have until Dec. 15, 2020, to file, but if the tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief; quarterly estimated income tax payments due on Sept. 15, 2020 and the quarterly payroll and excise tax returns normally due on Oct. 31, 2020; tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 15, 2020; businesses with extensions including, among others, calendar-year corporations whose 2019 extensions run out on Oct. 15, 2020). The deposit delayed date was Aug. 31, 2020. (IR 2020-191)

California: The following are federal disaster areas qualifying for individual assistance on account of the California wildfires that began on Sept. 4, 2020: Fresno, Los Angeles, Madera, Mendocino, Napa, San Bernardino, San Diego, Shasta, Siskiyou, and Sonoma counties.

For these California counties, the onset date of the disaster was Sept. 4, 2020, and the extended date is Jan. 15, 2021 (which applies to the individuals who had a valid extension to file their 2019 return due to run out on Oct. 15, 2020, will now have until Jan. 15, 2021, to file, but if the tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief; quarterly estimated income tax payments due on Sept. 15, 2020 and the quarterly payroll and excise tax returns normally due on Nov. 2, 2020; tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 16, 2020; businesses with extensions have the additional time including, among others, calendar-year corporations whose 2019 extensions ran out on Oct. 15, 2020; and penalties on payroll and excise tax deposits due on or after Sept. 4 and before Sept. 21, will be abated as long as the deposits were made by Sept. 21, 2020). The deposit delayed date was Sept. 21, 2020. (IR 2020-237)

Florida: The following is a federal disaster area qualifying for individual assistance on account of Hurricane Sally that began Sept. 14, 2020: Bay, Escambia, Okaloosa, Santa Rosa, and Walton counties.

For these Florida counties, the onset date of the disaster was Sept. 14, 2020, and the extended date is Jan. 15, 2021 (which applies to the individual and business tax filers that had a valid extension to file their 2019 return due to run out on Oct. 15, 2020, but if the tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief; third quarter estimated tax payment due on Sept. 15; quarterly payroll and excise tax returns normally due on Nov. 2; and tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 16) Penalties on deposits due on or after Sept. 14 and before Sept. 29 will be abated as long as the deposits are made by Sept. 29, 2020. The deposit delayed date was Sept. 29, 2020.

Iowa: The following is a federal disaster area qualifying for individual assistance on account of the derecho storm that began on Aug. 10, 2020: Benton, Boone, Cedar, Clinton, Jasper, Linn, Marshall, Polk, Poweshiek, Scott, Story, and Tama counties.

For this Iowa county, the onset date of the disaster was Aug. 10, 2020, and the extended date is Dec. 15, 2020 (which applies to: individuals who had a valid extension to file their 2019 return due to run out on October 15, 2020, who will now have until December 15, 2020, to file, but if tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief; quarterly estimated income tax payments due on September 15, 2020 and the quarterly payroll and excise tax returns normally due on October 31, 2020; tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 15, 2020; and businesses with extensions, including, among others, calendar-year corporations whose 2019 extensions run out on Oct. 15, 2020). The deposit delayed date was Aug. 25, 2020. (IR 2020-190)

Louisiana: The following are federal disaster areas qualifying for individual assistance on account of Hurricane Laura that began Aug. 22, 2020: Acadia, Allen, Beauregard, Bienville, Bossier, Caddo, Calcasieu, Cameron, Catahoula, Claiborne, Evangeline, Grant, Jackson, Jefferson Davis, Lafayette, La Salle, Lincoln, Morehouse, Natchitoches, Ouachita, Pointe Coupee, Rapides, Sabine, St. Landry, St. Martin, St. Mary, Union, Vermilion, Vernon, Webster, West Feliciana, and Winn parishes.

For these Louisiana parishes, the onset date of the disaster was Aug. 22, 2020, and the extended date is Dec. 31, 2020 (which includes individuals who had a valid extension to file their 2019 return due to run out on Oct. 15, 2020, who will now have until Dec. 31, 2020, to file, but if the tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief; quarterly estimated income tax payments due on Sept. 15, 2020; quarterly payroll and excise tax returns normally due on Nov. 2, 2020; tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 16, 2020; businesses with extensions, including, among others, calendar-year corporations whose 2019 extensions run out on Oct. 15, 2020). The deposit delayed date was Sept. 8, 2020. (IR 2020-197)

Louisiana: The following are federal disaster areas qualifying for individual assistance on account of Hurricane Delta that began on Oct. 6, 2020: Acadia, Beauregard, Calcasieu, Cameron, Jefferson Davis, Lafayette, Rapides, St. Landry, St. Martin and Vermilion parishes.

For these Louisiana parishes, the onset date of the disaster was Oct. 6, 2020, and the extended date is Feb. 16, 2021 (which includes the ndividuals who had a valid extension to file their 2019 return due to run out on Oct. 15, 2020, will now have until Feb. 16, 2021, to file; additional extension beyond the Dec. 31 deadline announced in August, but if these tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief; quarterly estimated income tax payments due on Jan. 15, 2021 and the quarterly payroll and excise tax returns normally due on Nov. 2, 2020 and Feb. 1, 2021; tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 16, 2020; businesses with extensions have the additional time including, among others, calendar-year corporations whose 2019 extensions run out on Oct. 15, 2020; and penalties on payroll and excise tax deposits due on or after Oct. 6 and before Oct. 21, will be abated as long as the deposits are made by Oct. 21, 2020). The deposit delayed date was Oct. 21, 2020. (IR 2020-236)

Michigan: The following are federal disaster areas qualifying for individual assistance on account of severe storms and flooding that began on May 16, 2020: Arenac, Gladwin, Iosco, Midland, and Saginaw counties.

For these Michigan counties, the onset date of the disaster was May 16, 2020, and the extended date was Oct. 15, 2020 (which includes 2019 individual and business returns that, due to COVID-19, were due on July 15; affected taxpayers will have until Oct. 15 to make 2019 IRA contributions; estimated tax payments for the first two quarters of 2020 that were due on July 15 and the third quarter estimated tax payment due on Sept. 15; the quarterly payroll and excise tax returns normally due on April 30 and July 31; and penalties on payroll and excise tax deposits due on or after May 16 and before June 1 will be abated as long as the deposits are made by June 1). The deposit delayed date was April 2, 2020.

Mississippi: The following are federal disaster areas qualifying for individual assistance on account of April tornadoes, severe storms and flooding that began on April 12, 2020: Clarke, Covington, Grenada, Jasper, Jefferson Davis, Jones, Lawrence, Panola and Walthall counties.

For these Mississippi counties, the onset date of the disaster was April 12, 2020, and the extended date was Oct. 15, 2020 (which includes 2019 individual and business returns that, due to COVID-19, were due on July 15; means that affected taxpayers will have until Oct. 15 to make 2019 IRA contributions; applies to estimated tax payments for the first two quarters of 2020 that were due on July 15, and the third quarter estimated tax payment normally due on Sept. 15; and includes the quarterly payroll and excise tax returns normally due on April 30 and July 31). The deposit delayed date was April 27, 2020. (IR 2020-126)

Oregon: The following are federal disaster areas qualifying for individual assistance on account of severe storms, flooding, landslides and mudslides that began on Feb. 5, 2020: Umatilla County and the Confederated Tribes of the Umatilla Indian Reservation.

For these Oregon areas, the onset date of the disaster was Feb. 5, 2020, and the extended date was July 15, 2020 (which grants certain deadlines falling on or after Feb. 5, 2020, and before April 1, 2020, additional time to file through July 15, 2020; includes the 2019 partnership and S corporation returns normally due on March 16, 2020; and includes the nationwide Coronavirus-related relief already available to taxpayers on returns, payments and other time-sensitive actions occurring on or after April 1, 2020 and before July 15, 2020). The deposit delayed date was Feb. 20, 2020.

Puerto Rico: The following are federal disaster areas qualifying for individual assistance on account of earthquakes that took place beginning on Dec. 28, 2019: Adjuntas, Arecibo, Cabo Rojo, Ciales, Corozal, Guánica, Guayanilla, Hormigueros, Jayuya, Juana Díaz, Lajas, Lares, Las Marías, Maricao, Mayagüez, Morovis, Orocovis, Peñuelas, Ponce, San Germán, Sabana Grande, San Sebastián, Utuado, Villalba and Yauco municipalities.

For these Puerto Rico municipalities, the onset date of the disaster was Dec. 28, 2019, and the extended date was April 30, 2020 (which also applies to the individual income tax return due on April 15, 2020, the quarterly estimated income tax payments due on Jan. 15, 2020 and April 15, 2020, and the quarterly payroll and excise tax returns normally due on Jan. 31, 2020). The deposit delayed date was Jan. 13, 2020.

Puerto Rico: The following are federal disaster areas qualifying for individual assistance on account of Tropical Storm Isaias that began July 29: Aguada, Hormigueros, Mayagüez, and Rincón municipalities.

For these Puerto Rico municipalities, the onset date of the disaster was July 29, 2020 and the extended date is Nov. 30, 2020 (which includes the individual and business tax filers that had a valid extension to file their 2019 return due to run out on October 15, 2020, but if the tax payments related to these 2019 returns were due on July 15, 2020, then those payments are not eligible for this relief; third quarter November 30 deadline of estimated tax payment due on September 15; quarterly payroll and excise tax returns normally due on Nov. 2; tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 16; penalties on deposits due on or after July 29, 2020, and before Aug. 13, 2020, will be abated as long as the tax deposits were made by Aug. 13, 2020). The deposit delayed date was Aug. 13, 2020.

South Carolina: The following are federal disaster areas qualifying for individual assistance on account of April tornadoes, severe storms and flooding that began on April 12, 2020: Aiken, Barnwell, Berkeley, Colleton, Hampton, Marlboro, Oconee, Orangeburg and Pickens counties.

For these South Carolina counties, the onset date of the disaster was April 12, 2020, and the extended date was Oct. 15, 2020 (which includes 2019 individual and business returns that, due to COVID-19, were due on July 15; means that affected taxpayers will have until Oct. 15 to make 2019 IRA contributions; applies to estimated tax payments for the first two quarters of 2020 that were due on July 15, and the third quarter estimated tax payment normally due on Sept. 15; and includes the quarterly payroll and excise tax returns normally due on April 30 and July 31). The deposit delayed date was April 27, 2020. (IR 2020-126)

South Dakota: The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, and flooding that began on Sept. 9, 2019: Aurora, Brookings, Charles Mix, Davison, Hanson, Hutchinson, Lake, Lincoln, McCook, Minnehaha, Moody, and Yankton Counties and the Flandreau Santee Indian Reservation and the Yankton Indian Reservation.

For these South Dakota counties and reservations, the onset date of the disaster was Sept. 9, 2019, and the extended date was Jan. 31, 2020 (which applies to the quarterly estimated income tax payments due on Sept. 16, 2019 and Jan. 15, 2020; the quarterly payroll and excise tax returns normally due on Oct. 31, 2019; the tax-exempt organizations, operating on a calendar-year basis, that had a valid extension that ran out on Nov. 15, 2019; the businesses with extensions including, among others, calendar-year corporations whose 2018 extensions ran out on Oct. 15, 2019). The deposit delayed date was Sept. 24, 2019.

Tennessee: The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, straight-line winds, and flooding that began on March 3, 2020: Davidson, Putnam, and Wilson counties.

For these Tennessee counties, the onset date of the disaster was Mar. 3, 2020, and the extended date was July 15, 2020 (which applies to the individual income tax returns due on Apr. 15, 2020; quarterly estimated income tax payments due on Apr. 15, 2020, and June 15, 2020; quarterly payroll and excise tax returns normally due on Apr. 30, 2020; tax-exempt organizations, operating on a calendar-year basis, that have a 2019 return due on May 15, 2020; taxpayers making their 2019 IRA contributions; and penalties on payroll and excise tax deposits due on or after Mar. 3, 2020 and before Mar. 18, 2020, which will be abated as long as the tax deposits were made by Mar. 18, 2020). The deposit delayed date was Mar. 18, 2020. (IR 2020-51)

Tennessee: The following are federal disaster areas qualifying for individual assistance on account of April tornadoes, severe storms and flooding that began on April 12, 2020: Bradley and Hamilton counties.

For these Tennessee counties, the onset date of the disaster was April 12, 2020, and the extended date was Oct. 15, 2020 (which includes 2019 individual and business returns that, due to COVID-19, were due on July 15; means that affected taxpayers will have until Oct. 15 to make 2019 IRA contributions; applies to estimated tax payments for the first two quarters of 2020 that were due on July 15, and the third quarter estimated tax payment normally due on Sept. 15; and includes the quarterly payroll and excise tax returns normally due on April 30 and July 31). The deposit delayed date was April 27, 2020. (IR 2020-126)

Texas: The following are federal disaster areas qualifying for individual assistance on account of Tropical Storm Imelda that took place on Sept. 17, 2019: Chambers, Harris, Jefferson, Liberty, Montgomery, Orange and San Jacinto counties.

For these parts of Texas, the onset date of the disaster was Sept. 17, 2019, and the extended date was Jan. 31, 2020 (which applies to the quarterly estimated income tax payments due on Jan. 15, 2020; quarterly payroll and excise tax returns normally due on Oct. 31, 2019; tax-exempt organization returns, for organizations operating on a calendar-year basis, that had a valid extension due to run out on Nov. 15, 2019; business income tax returns with extensions, including, among others, calendar-year corporations whose 2018 extensions run out on Oct. 15, 2019). The deposit delayed date was Oct. 2, 2019. In addition, penalties on payroll and excise tax deposits due on or after Sept. 17, 2019, and before Oct. 2, 2019, will be abated as long as the deposits were made by Oct. 2, 2019. (IR 2019-164)

Utah: The following are federal disaster areas qualifying for individual assistance on account of earthquake and aftershocks that began on Mar. 18, 2020: Davis and Salt Lake counties.

For these parts of Utah, the onset date of the disaster was Mar. 18, 2020, and the extended date was July 31, 2020 (which includes 2019 individual and business returns that, due to COVID-19, were due on July 15; affected taxpayers will have until July 31 to make 2019 IRA contributions; estimated tax payments for the first two quarters of 2020 that were due on July 15; quarterly payroll and excise tax returns normally due on April 30; and penalties on payroll and excise tax deposits due on or after March 18 and before April 2 will be abated as long as the deposits are made by April 2). The deposit delayed date was Apr. 2, 2020.

To continue your research on postponement of tax deadlines due to disasters, see FTC 2d ¶S-8500United States Tax Reporter ¶75,08A4.

 

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