IRS announced yesterday that it gives tax relief to Hurricane Harvey victims. Affected taxpayers have until January 31, 2018 to file certain individual and business tax returns and make certain tax payments.
Eligible Counties for the Hurricane Harvey Tax Relief
As of now, in Texas, the following counties qualify for the tax relief: Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria and Wharton. Montgomery County and other affected areas are not on this list yet, but more counties will be added later, based on the damage assessments by FEMA. Update 8/30/2017: more counties were added by the IRS, to include Colorado, Fayette, Hardin, Jasper, Jefferson, Montgomery, Newton, Orange, Sabine, San Jacinto and Waller Counties.
Tax Relief – Certain Tax Filings and Payment Deadlines Postponed to January 31, 2018
The tax relief postpones to January 31, 2018 various tax filing and payment deadlines that occurred starting on August 23, 2017.
Businesses and individuals that filed extensions for their returns that run out on September 15 and October 16, respectively, have until January 31, 2018 to file their returns. However, keep in mind, that even if you extended your tax return, the 2016 tax was due on April 18th. The extensions extend the time to file, not the time to pay. Thus these payments are not eligible for relief. But, the the 2017 estimated quarterly tax payments get an extension. They were due September 15, 2017, December 15, 2017 and January 16, 1018. Now you have until January 31, 2018 to make these payments.
The quarterly payroll and certain excise tax returns, which were normally due on October 31, 2017 qualify as well for the relief. You have until January 31, 2018 to file them. The IRS will also wave the late-deposit penalties for federal payroll and excise tax deposits normally due after August 23 and before September 7, if you make the deposits by September 7, 2017.
There are other tax filings that qualify and you can read more about them on the IRS disaster relief page:
Who Qualifies for the Hurricane Harvey Tax Relief
The tax relief applies to taxpayers that have the address of record in the disaster area. The filing and penalty relief is provided automatically, thus you don’t need to contact the IRS to obtain it. In addition, the IRS will work with the taxpayers that, even though they live outside the disaster area, had their records in an affected area. Workers assisting the relief activities affiliated with a recognised government or charitable organisation and other taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227.
If you need assistance with your accounting or tax fillings, we are here to help. Call us at (832) 919-8448 or request a free consultation.