Good News For North Carolina Residents – IRS Declared To Offer Tax Relief To The Victims Of Hurricane Florence!
While the residents of North Carolina suffered major losses due to Hurricane Florence that began wreaking havoc on September 7, 2018, there’s a silver lining to the story – on September 15, 2018, the IRS announced that it will offer tax relief to the hurricane victims in certain specific counties of North Carolina.
Owing to the disastrous effects of the hurricane, the President declared both North Carolina and South Carolina as federal disaster areas and ordered the Federal Emergency Management Agency to provide aid and individual assistance to all the affected areas. Following suit, the IRS too declared to provide tax relief for Hurricane Florence victims belonging to these counties:
- New Hanover,
- Wayne, and,
All the counties listed above fall under a disaster area for purposes of Treas. Reg. §301.7508A-1(d)(2). According to IRS’ declaration, taxpayers now have until January 31, 2019, to file their taxes and meet other relevant payment deadlines that are normally due on September 7, 2018, and January 15, 2019.
Grant of Relief
The IRS has shifted the deadline for filing tax returns to January 31, 2019, under Section 7508A. This relief extends to almost all tax returns having either the original or extended due date on/after September 7, 2018, and before January 31, 2019, such as individual; corporate, estate and trust income tax returns; partnership returns, and S corporation returns; estate, gift, and generation-skipping transfer tax returns; excise tax returns; annual information returns of tax-exempt organizations, to name a few.
Here are some other important clauses of the tax relief are:
- Taxpayers in the affected areas who have an estimated income tax payment originally due on/after September 7, 2018, and before January 31, 2019, will not be penalized for late payments provided they pay their tax installments on/before January 31, 2019.
- Taxpayers in the affected areas can perform all other time-sensitive payments/actions (due on/after September 7, 2018, and before January 31, 2019) till January 31, 2019, as recorded under Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (August 20, 2007).
- The tax relief also extends to the filing of Form 5500 series returns, (due on/after September 7, 2018, and before January 31, 2019) as described under Section 8 of Rev. Proc. 2007-56. However, if an act is not specifically listed in Rev. Proc. 2007-56, the relief will not apply to employment and excise tax deposits; to information returns in the W-2, 1094, 1095, 1097, 1098, or 1099 series, and to Forms 1042-S, 3921, 3922 or 8027.
In addition to these, the IRS will also waive the fees as well as expedite requests of the affected taxpayers for the copies of tax returns filed previously. To request a copy of your previously filed tax return, you must write in red ink “North Carolina, Hurricane Florence” at the top of Form 4506 (Request for Copy of Tax Return) or Form 4506-T (Request for Transcript of Tax Return) and then submit it to the IRS.
Claiming Casualty Losses
As stated under Publication 547, taxpayers in federally declared disaster areas can claim disaster-related casualty losses on their income tax return either in the year in which the disaster occurred or the year before that. Furthermore, taxpayers can deduct any personal property losses that aren’t covered by insurance by filling out the Form 4684 (Casualties and Thefts).
For the taxpayers who wish to claim disaster losses for their 2017 tax return must state the Disaster Designation as “North Carolina, Hurricane Florence” at the top of the form. This will push the IRS to expedite the refund.
The tax relief for Hurricane Florence definitely comes as a welcome news to all those residing in the areas affected by the hurricane as they now have ample time in their hands to plan and file their tax returns. For further details on the IRS tax relief for Hurricane Florence, you can visit the IRS official declaration page.
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