Hurricane Ian definitely brought destruction, but it also brought tax relief for those who were affected. Taxes are likely the last thought one may have if you were affected by Hurricane Ian, but know there is tax relief out there for those affected by Hurricane Ian.
For example, the Internal Revenue Service (the “IRS”) has provided extension relief for those individuals and businesses until February 15, 2023, to file tax returns and make payments to the IRS for individuals and households affected by Hurricane Ian that reside or have a business anywhere in the state of Florida. This applies to individuals who had a valid tax extension due to run out on October 17, 2022. Note, if tax payments relate to 2021 returns that were due on April 18, 2022, these are not eligible for this relief.
This relief applies to quarterly estimated tax payments, normally due on January 17, 2023, and to the quarterly payroll and excise tax returns normally due on October 31, 2022, and January 31, 2023. Businesses with an original or extended due date also have additional time, including calendar-year corporations whose 2021 extensions run out on October 17, 2022. In addition, penalties on payroll and excise tax deposits due on or after September 23, 2022, and before October 10, 2022, will be abated as long as the tax deposits are made by October 10, 2022.
If you receive a late filing or payment penalty notice from the IRS, the IRS encourages you to call the number on the notice letter and request that the penalty be abated.
There is also some additional relief that has been in the tax code prior to Hurricane Ian’s destruction, such as Qualified Disaster Relief (Code Section 165) and Disaster Relief Payments (Code Section 139).
Qualified Disaster Relief
Qualified Disaster Relief will apply if you are affected by a “Qualified Disaster,” which is a disaster that is federally declared (I will refer to this as “Section 165 Relief”). Hurricane Ian and the state of Florida have been declared a “federal disaster” qualifying those losses associated with Hurricane Ian as “Qualified Disaster Relief.”