The IRS Provides Tax Relief in the Wake of Wildfires and Hurricane Laura

We can all admit it, so far 2020 has been a real doozy. With a global pandemic, raging wildfires, and an extra active hurricane season all teaming up, to use the word overwhelming is an understatement. 

Whether you own a small business, operate a nonprofit organization, or are an individual taxpayer, the IRS is making exceptions and extending deadlines to help ease the burden. Whether you are in California dealing with wildfires or a hurricane along the Louisiana coast, while taxes are understandably the last thing on your mind, here is a look at the relief that the IRS is offering. 

The Affected Areas of California 

According to the Federal Emergency Management Agency (FEMA), the following counties have been affected by wildfires and are eligible for relief as of August 24, 2020. These counties include: 

• Lake 
• Monterey
• Napa 
• San Mateo
• Santa Cruz
• Solano
• Sonoma
• Yolo

Keep in mind that as other localities are added, these residents will receive the same filing and payment relief.

What Deadlines are Affected? 

Any deadlines beginning on August 24, 2020 can be put off until December 15, 2020. This includes any extensions that were filed and would have run out during this time. If you filed an extension on your personal income tax return, instead of filing with the IRS by October 15, you will now have until December 15, 2020. The same goes for businesses that filed an extension on their business income taxes back in July. 

For businesses this relief also applies to the quarterly Form 941 deadline on November 2, 2020. Any non profit organizations with a Form 990 due during this time can also put off their filing until December. They can do so whether or not this deadline is based on their calendar year or an extension that was already filed. 

Areas Affected by Hurricane Laura

Last week, Hurricane Laura battered the Gulf Coast as a Category 4 Hurricane, leaving massive destruction in her path. According to the Federal Emergency Management Agency (FEMA), the following parishes of Louisiana have been affected by Hurricane Laura. These parishes include: 

• Allen 
• Beauregard 
• Calcasieu
• Cameron
• Jefferson Davis
• Vernon

Again, as FEMA continues to assess the damage and add additional localities, these residents are automatically entitled to tax filing and payment relief. 

What Deadlines are Affected? 

Business owners, individual taxpayers, and non profit organizations can all take part in the same affected deadlines as seen above for those affected in California. The main difference being that their deadlines are extended about a bit further to December 31, 2020. 

This still applies to the Form 941 quarterly tax return that falls on November 2, 2020. 

For more information on receiving aid and dealing with the damage related to these natural disasters, please check out the FEMA website at, https://www.fema.gov. 

When it’s Time to File, Choose TaxBandits

Our hearts go out to all of those affected by these disastrous events. We wish you well as you begin to rebuild and reassess. When it comes to file, our team is here to help! We offer simplified, electronic tax filing at fair and affordable rates. We can help you catch up on your business tax forms, like the Form 941. We can even help you get ahead on your Forms 1099 and W-2s. Are you a mandated reporter under the ACA, we can help you prepare Forms 1095 in the future!

Need to file Form 7200 for an advance on COVID-19 related tax credits? You can get started right now by signing up for a free TaxBandits account.