North Carolina Victims of Hurricane Florence Granted Tax Relief

The president has declared a federal disaster area in North Carolina due to Hurricane Florence, which began on September 7, 2018. The disaster area includes the following counties:

  • Beaufort
  • Bladen
  • Brunswick
  • Carteret
  • Columbus
  • Craven
  • Cumberland
  • Duplin
  • Harnett
  • Lenoir
  • Jones
  • New Hanover
  • Onslow
  • Pamlico
  • Pender
  • Robeson
  • Sampson, and
  • Wayne

Thus, taxpayers who live or have businesses in the disaster area may qualify for tax relief.

North Carolina Filing Deadlines Extended

First, the IRS extended certain deadlines falling on or after September 7, and before January 31, 2019, to January 31, 2019. This extension includes filing deadlines 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.

North Carolina Payment Deadlines Extended

Also, the relief includes extra time to make tax payments. This extension includes estimated tax payments due on or after September 7, and before January 31, 2019. In addition, taxpayers have until January 31, 2019, to perform other time-sensitive actions due on or after September 7 and before January 31, 2019.

The IRS also excused late penalties for employment and excise tax deposits due on or after September 7, and before September 24. But, the taxpayer must make the deposits by September 24, 2018.

Casualty Losses

Finally, affected taxpayers can claim disaster-related casualty losses on their federal income tax return. However, 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:

“North Carolina, Hurricane Florence”

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 Form 4506-T, Request for Transcript of Tax Return, and
  2. submit it to the IRS.

North Carolina Disaster Relief Notice (NC-2018-03)

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AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup