Tax Relief For Victims of Hurricane Matthew Expanded; Parts of Four States Eligible (IR-2016-135)

CCH Tax Day Report

Victims of Hurricane Matthew in parts of North Carolina, South Carolina, Georgia and Florida may qualify for tax relief from the IRS. Individuals who reside or have a business in various counties and workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization will have until March 15, 2017, to file certain tax returns and make certain tax payments. The relief includes those whose extension to file a 2015 tax return ran out on October 17, 2016. Currently, the following areas are eligible for relief:

North Carolina: Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Chowan, Columbus, Craven, Cumberland, Currituck, Dare, Duplin, Edgecombe, Gates, Greene, Harnett, Hoke, Hyde, Johnston, Jones, Lenoir, Martin, Nash, New Hanover, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Pitt, Robeson, Sampson, Tyrrell, Washington, Wayne and Wilson counties.

South Carolina: Beaufort, Berkeley, Charleston, Colleton, Darlington, Dillon, Dorchester, Florence, Georgetown, Horry, Jasper, Marion, Orangeburg and Williamsburg counties.

Georgia: Bryan, Camden, Chatham, Glynn, Liberty and McIntosh counties.

Florida: Brevard, Duval, Flagler, Indian River, Nassau, St. Johns, St. Lucie and Volusia counties

The extension also includes the October 31, 2016, and January 31, 2017, deadlines for quarterly payroll and excise tax returns, as well as the special March 1 deadline that applies to farmers and fishermen who choose to forgo making quarterly estimated tax payments. However, tax payments related to 2015 returns that were originally due on April 18, 2016, are not eligible for this relief. In addition, the IRS is waiving late-deposit penalties for federal payroll and excise tax deposits normally due on or after October 4 and before October 19, if the deposits are made by October 19, 2016.

Taxpayers in the covered disaster areas can claim disaster-related casualty losses on their federal income tax return for either 2015 or 2016. Individuals may deduct personal property losses that are not covered by insurance or other reimbursement.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area; taxpayers need not contact the IRS to get this relief. However, if an affected taxpayer receives a late-filing or late-payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

IR-2016-135, 2016FED ¶46,435

IR-2016-135, FINH ¶30,838

Other References:

Code Sec. 6081

CCH Reference – FINH ¶20,345.80

CCH Reference – FINH ¶20,355.55

Code Sec. 6161

CCH Reference – FINH ¶20,585.35

Code Sec. 7508A

CCH Reference – 2016FED ¶42,687C.22

CCH Reference – FINH ¶22,560.30

Tax Research Consultant

CCH Reference – TRC FILEIND: 15,204.25

CCH Reference – TRC FILEBUS: 15,110

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CCHTaxGroup

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