Last week, three intense tornadoes ripped through Middle Tennessee, wreaking havoc and causing the loss of 24 lives. This was a devastating event for a large number of people in the state and in the wake of this tragedy, the IRS is providing tax relief to those affected.
They are postponing deadlines and penalties for residents of the affected areas. The many affected businesses will now have one less thing to worry about in the immediate future. Individuals can also take advantage of this relief when filing their personal income taxes.
Who Does This Relief Apply To?
The IRS is including any taxpayers that live in the areas deemed eligible by the Federal Emergency Management Agency (FEMA). As they are able to access the situation further, more affected areas will be added. Currently, the residents of these three counties qualify for IRS tax relief.
Which Deadlines Are Affected?
The IRS is postponing the deadlines for any tax returns that were due in the days following March 3, as well as the big tax deadlines later this spring.
All business income tax returns that were originally due by March 16, 2020 can be postponed until July 15th, 2020.
The business income tax and personal income tax returns that are generally due to the IRS by April 15, 2020 can also be postponed until July 15.
As for quarterly business income tax and payroll tax payments, the deadlines will be postponed until July 15, 2020 and all penalties going forward until that point will be put on hold. Non profit organizations that run on a calendar year are also able to put off their Form 990 filing until July 15, 2020.
Can Affected Taxpayers Claim A Deduction?
Yes. Any taxpayers that live in these affected areas are able to claim a tax deduction for any damages that are not reimbursed. The deduction can be claimed on next year’s taxes, due to the IRS in 2021. Or they can be claimed on the current year’s taxes which have been postponed until July 15, 2020.