Some tax relief is coming soon for the victims of flooding in parts of Alaska. Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), the IRS has announced tax relief for flooding victims in Alaska. As part of this tax relief, the agency has extended the deadline to file various individual and business tax returns and make tax payments.
Tax Relief For Flooding Victims In Alaska: Who Will Get It?
On Tuesday, the IRS announced that victims of flooding in parts of Alaska will now have until Oct. 31, 2023, to file several individual and business tax returns, as well as make tax payments.
According to the IRS announcement, individuals and households that live or have a business in the flood-affected areas qualify for tax relief for flooding victims in Alaska. So, taxpayers with certain tax filing deadlines on or after May 12, 2023, but before Oct. 31, 2023, will get more time to file.
Affected individuals and businesses now have until Oct. 31, 2023, to file various returns, as well as pay any taxes due. For instance, the 2022 individual income tax returns deadline due on Oct. 16, 2023, has been extended for affected individuals.
It must be noted that tax payments related to the 2022 returns do not qualify for the relief as they were due on April 18, 2023. The extended deadline applies to quarterly estimated tax payments, which are usually due on June 15 and September 15, 2023.
Moreover, businesses (calendar-year partnerships, S corporations and more) with an original or an extended due date on or before September 15, and calendar-year corporations with an extended due date on or before Oct. 16, 2023, also qualify for the tax relief for flooding victims in Alaska.
As well, the penalties “on payroll and excise tax deposits due on or after May 12, 2023, and before May 29, 2023, will be abated as long as the tax deposits are made by May 29, 2023,” the IRS said.
Do You Need To Apply For The Relief?
Taxpayers located in the covered disaster area don’t need to apply for the relief; rather the IRS will automatically apply the relief to the affected taxpayers. Affected taxpayers living or doing business outside the affected areas need to call the IRS disaster hotline at 866-562-5227 to request relief.
Visit this link to view the complete list of affected areas.
If a taxpayer in the affected region receives an IRS late filing or late payment penalty notice for the mentioned period, they need to call the telephone number provided on the notice to waive the penalty.
Separately, affected taxpayers living in a federally declared disaster area can also claim disaster-related casualty losses on their federal income tax return. Such taxpayers can either claim the losses on their current year’s return or of last year’s by writing “Alaska flooding” at the top of the form.
This article originally appeared on ValueWalk
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