The IRS has postponed various tax deadlines for victims of storms and tornadoes in Tennessee that began on December 9, 2023. These taxpayers now have until June 17, 2024, to file their federal tax returns and make tax payments. (IR 2023-250, 12/22/2023)
Disaster area.
This disaster relief applies to taxpayers in Davidson, Dickson, Montgomery, and Sumner counties. Individuals that reside or have a business in these counties qualify for this postponement.
Note. This same relief will be available to any other Tennessee localities added to the disaster area. The current list of eligible localities available on the IRS’ disaster relief page.
Postponement period.
This tax relief postpones various tax filing and payment deadlines that occurred from December 9, 2023, through June 17, 2024 (postponement period). This means, for example, that the June 17, 2024, deadline will now apply to:
- Individual income tax returns and payments normally due on April 15, 2024.
- 2023 contributions to IRAs and health savings accounts for eligible taxpayers.
- Quarterly estimated income tax payments normally due on January 16 and April 15, 2024.
- Quarterly payroll and excise tax returns normally due on January 31 and April 30, 2024.
- Calendar-year partnership and S corporation returns normally due on March 15, 2024.
- Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.
- Calendar-year tax-exempt organization returns normally due on May 15, 2024.
In addition, penalties for failing to make payroll and excise tax deposits due on or after December 9, 2023, and before December 26, 2023, will be abated if the deposits are made by December 26, 2023.
Note. The IRS urges anyone who won’t be able to file their 2023 return by June 17, 2024, to electronically request a filing extension to October 15, 2024, no later than April 15. Although a disaster-area taxpayer qualifies to request an extension between April 15 and June 17, a request filed during this period can only be submitted on paper.
Automatic relief.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get this relief. Affected taxpayers who don’t have an address of record in the disaster area that receive a late-filing or late-payment notice should call the number on the notice to have the penalty abated. This includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are in the disaster area. These taxpayers need to contact the IRS at 866-562-5227.
Disaster 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 their 2023 return (filed in 2024), or their 2022 return (original or amended). Affected taxpayers have until October 15, 2024, to make the election. Write the FEMA declaration number — 4751-DR — on any return claiming a disaster loss.
For more information about disaster losses, see Checkpoint’s Federal Tax Coordinator ¶M-2000 et seq.
Qualified disaster relief payments.
Generally, disaster relief payments are excluded from gross income. Thus, affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents.
For more information about qualified disaster relief payments, see Checkpoint’s Federal Tax Coordinator ¶J-1291.
Retirement plan distributions.
Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). These taxpayers may be eligible to take a disaster distribution that would not be subject to the additional 10% early distribution tax. The taxpayer would also be allowed to spread the distribution income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.
For more information about the exemption from the 10% early withdrawal tax for disaster distributions from qualified plans, see Checkpoint’s Federal Tax Coordinator ¶H-11108.1.
Get all the latest tax, accounting, audit, and corporate finance news with Checkpoint Edge. Sign up for a free 7-day trial today.
