The IRS has provided tax relief to storm victims in parts of Georgia and Alabama. Victims in the disaster area now have until May 15, 2023, to file various federal individual and business tax returns and make tax payments, the IRS has announced. (IR 2023-9, 1/9/2023)
Disaster area.
This tax relief applies to taxpayers that reside or have a business in the following counties:
- Alabama: Autauga and Dallas
- Georgia: Butts, Henry, Jasper, Meriwether, Newton, Spalding, and Troup
Postponed deadlines.
This tax relief postpones various tax filing and payment deadlines beginning on January 12, 2023. As a result, affected individuals and businesses will have until May 15, 2023, to file returns and pay any taxes that were originally due between January 12, 2023, and May 15, 2023.
This means that 2022 individual income tax returns due on April 18, as well as various 2022 business returns normally due on March 15 and April 18 are now due on May 15, 2023. It also means that eligible taxpayers will have until May 15 to make 2022 contributions to their IRAs and health savings accounts.
In addition,
- Farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until May 15, 2023, to file their 2022 return and pay any tax due.
- Taxpayers with estimated tax payments due on January 17, 2023, can skip making that payment and instead include it with their 2022 return, as long as they file on or before May 15.
- Taxpayers with estimated tax payments due April 18, 2023, will have until May 15, 2023, to make those payments.
- For businesses in the disaster area, quarterly payroll and excise tax returns normally due on January 31 and April 30, 2023, are now due on May 15, 2023.
In addition, the IRS will abate penalties on payroll and excise tax deposits due on or after January 12, 2023, and before January 27, 2023, as long as the tax deposits are made by January 27, 2023.
Relief is automatic.
The IRS automatically provides this tax relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, 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, workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization, and who live outside the disaster area, should contact the IRS at 866-562-5227 to obtain this tax relief.
Disaster (casualty) losses.
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 next year), or the return for the prior year (2022, normally filed this tax season). Be sure to write the FEMA declaration number—4684-DR for Alabama or 4685-DR for Georgia—on any return claiming a loss.
For more information about casualty (disaster) loss deductions, see Checkpoint’s Federal Tax Coordinator ¶ M-2000.
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