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IRS Tax Relief for Derecho Victims

August 27, 2020

The Internal Revenue Service (IRS) is extending tax deadlines for taxpayers in areas affected by the derecho that occurred on August 10, 2020. To qualify for the extensions provided, individuals and businesses must reside or have their principal place of business in an area designated by FEMA as qualifying for assistance. Currently, Linn County residents and businesses qualify. Other localities that were affected may be added.Various tax filing and payment deadlines which were set to occur on or after August 10, 2020 until December 15, 2020 have been extended. The extension to file various returns provides the following relief: Individuals or businesses who previously obtained a valid extension to file 2019 returns will automatically be granted a further extension to file until December 15, 2020. Businesses which are normally required to file quarterly payroll and excise tax returns on October 31, will not be required to pay until December 15, 2020.Similarly, the extension to make certain tax payments allows for:An extension of the deadline to pay quarterly estimated income tax payments from September 15, 2020 until December 15, 2020. Penalties for payroll and excise tax deposits which were due between August 10, 2020-August 25, 2020 will be abated so long as the deposits were made by August 25, 2020Please note that if you or your business owe tax payments related to your 2019 returns which were due on or before August 10, 2020, those payments are not eligible for this extension.The IRS will automatically provide the filing and penalty extensions to taxpayers with an IRS address in the disaster area. If a taxpayer incorrectly receives a late filing or late payment penalty notice from the IRS, the taxpayer should call the number on the notice received to have such penalty abated. If a taxpayer who was impacted by the storm lives outside the disaster area, the taxpayer should contact the IRS directly.The information provided in this article reflects guidance as of August 27, 2020. Any subsequent government action will need to be considered. Shuttleworth & Ingersoll will continue to closely monitor federal and state tax updates as they are released. Please contact any of our tax attorneys if you need additional guidance regarding this topic.  Source article:  

Attorney Author

Sarah C. Barr

Sarah C. Thielen is an Associate Attorney whose practice focuses on business law, estate planning, and tax law.

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