Hawaii Severe Storms, Flooding Victims Granted Tax Relief (HI-2018-03)

The president has declared federal disaster areas in Hawaii. The disaster is due to severe storms, flooding, landslides and mudslides beginning on April 13, 2018. The disaster area includes:

  • County of Honolulu, and
  • Kauai County

Taxpayers who live or have a business in the disaster area may qualify for tax relief.

Hawaii Severe Storms, Flooding Victims Granted Tax Relief

The IRS extended certain deadlines falling on or after April 13, and before August 15, 2018, to August 15, 2018. The extension covers filing for most returns, including:

  • individual, corporate, estate and trust income tax returns;
  • partnership and S corporation income tax returns;
  • estate, gift and generation-skipping transfer tax returns;
  • the Form 5500 series returns, and
  • employment and certain excise tax returns.

However, the extension does not include information returns in the Form W-2, 1098, or 1099 series or Forms 1042-S or 8027.

Hawaii Payment Deadlines Extended

Also, the relief includes extra time to make tax payments. This includes estimated tax payments due on or after April 13, and before August 15. Taxpayers also have until August 15, to perform other time-sensitive actions due on or after April 13, and before August 15, 2018.

Further, the IRS excused late penalties for employment and excise tax deposits due on or after April 13 and before April 30. But, the taxpayer must have made the deposits by April 30, 2018.

Casualty Losses

Affected taxpayers can claim disaster-related casualty losses on their federal income tax return. Taxpayers may get relief sooner by claiming their losses on their 2017 return.

Individuals may deduct personal property losses not covered by insurance or other reimbursements. Taxpayers claiming a disaster loss on their 2017 return should write the disaster designation:

  • “Hawaii Severe Storms, Flooding, Landslides and Mudslides”

in red at the top of the return. This will allow the IRS to speed refund processing.

Also, the IRS will provide affected taxpayers with copies of prior year returns without charge. To get this expedited service, taxpayers should:

  1. add the disaster designation at the top of Form 4506, Request for a Copy of Tax Return, or
  2. add the disaster designation at the top of Form 4506-T, Request for Transcript of Tax Return, and
  3. submit the request to the IRS.

Hawaii Disaster Relief Notice (HI-2018-03)

 

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CCHTaxGroup

All stories by: CCHTaxGroup