Federal Headlines Filing Relief Granted for North Dakota Flood Victims (ND-2011-15)

The IRS has extended return-filing and payment deadlines for victims of severe flooding that occurred in North Dakota beginning on April 14, 2011, affecting the counties of Burleigh and Ward and resulting in these counties being declared a federal disaster area. Persons who qualify for assistance were granted an extension to August 1, 2011, to file most tax returns, pay taxes, including estimated taxes and perform other time-sensitive acts otherwise due on or after April 14 and on or before August 1. This includes the April 18 deadline for filing 2010 individual income tax returns, making income tax payments and making 2010 contributions to an individual retirement account (IRA).

Affected taxpayers include those who reside or have a principal place of business in the presidentially declared disaster area, as well as persons outside the area whose records are located in the designated disaster area, all relief workers affiliated with recognized government or philanthropic organizations that assisted in the relief efforts, and any individual visiting the designated disaster area who was killed or injured as a result of the disaster.

While this relief also applies to the filing of Form 5500, the postponement of the time to file and pay does not apply to information returns in the Form W-2, 1098 or 1099 series, to Forms 1042-S or 8027, or to employment or excise tax deposits. However, penalties for failure to timely file information returns can be waived, for reasonable cause, under existing procedures. In addition, the IRS will abate penalties for failure to make timely employment and excise tax deposits due on or after April 14 and on or before April 29 provided the taxpayer made these deposits by April 29.

The IRS reminds taxpayers who suffer a casualty loss as a result of a federally declared disaster that they have the option of claiming disaster-related casualty losses on their federal income tax returns for either 2010 or 2011. Taxpayers claiming disaster-related casualty losses on their 2010 returns should mark the top of their tax returns “North Dakota/Flooding” to expedite refunds.

North Dakota Disaster Relief Notice (ND-2011-15), 2011FED ¶46,406

Other References:

Code Sec. 7508A

CCH Reference – 2011FED ¶¶42,687C.22

Tax Research Consultant

CCH Reference – TRC FILEIND: 15,204.25

CCH Reference – TRC FILEBUS: 15,110

AUTHOR

Wolters Kluwer Tax and Accounting

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