IRS Offers Temporary Tax Relief to Businesses Affected by Kentucky Floods

The IRS grants a reprieve for individuals and businesses to file various tax returns and make tax payments for Kentucky communities recovering from devastating floods. Victims of severe storms, floods, landslides and mudslides in Kentucky now have until Nov. 15, 2022 to file various individual and corporate tax returns and make tax payments, the Internal Revenue Service (IRS) announced.

IRS Extends Kentucky Storm and Flood Victims Tax Returns

The tax relief applies to businesses and households residing or operating a business in Kentucky’s Breathitt, Clay, Floyd, Johnson, Knott, Leslie, Letcher, Magoffin, Martin, Owsley, Perry, Pike,, and Wolfe counties who qualify for tax relief.

The tax relief extends several tax filing and payment deadlines that occurred from July 26, 2022. As a result, affected individuals and businesses have until November 15, 2022 to file returns and pay taxes originally due during this time.

This includes individuals who had a valid extension to file their 2021 returns that expire on October 17, 2022 and who now have until November 15, 2022 to file. However, the IRS noted that tax payments related to 2021 returns due on April 18, 2022 are not eligible for this exemption.

The November 15, 2022 deadline also applies to quarterly estimated income tax payments due on September 15, 2022, and the quarterly payroll and tax returns that are normally due on August 1 and October 31, 2022. Companies with an original or extended expiration date also have additional time. This includes calendar year partnerships and S corporations whose 2021 renewals expire on September 15, 2022, and calendar year corporations whose 2021 renewals expire on October 17, 2022.

In addition, penalties on payroll taxes and excise payments due on or after July 26 and before August 10 will be reduced as long as the deposits are made by August 10, 2022.

The IRS’s actions follow similar steps by state and federal agencies to provide support to those affected by the floods. The Small Business Administration (SBA) has announced that low-interest disaster loans will be available to businesses and residents of Kentucky.

How can affected companies know that they are entitled to a tax reduction?

The IRS provides assistance to these areas as they have been designated by the Federal Emergency Management Agency (FEMA) as eligible for individual or public assistance. A similar relief will be available for any other area added by FEMA later.

Taxpayers do not need to contact the agency to get this exemption. However, if an affected taxpayer receives a late filing or late payment penalty from the IRS with an original or extended filing, payment, or down payment date that falls within the deferral period, the taxpayer must call the number on the notice to collect the penalty. get declined. For disaster information about other returns, payments, and tax-related actions that qualify for the extra time, businesses can visit the Disaster Relief and Relief for Individuals and Businesses page.

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This post IRS Offers Temporary Tax Relief to Businesses Affected by Kentucky Floods was original published at “https://smallbiztrends.com/2022/08/irs-extends-tax-return-to-businesses-affected-by-kentucky-floods.html”

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