Tax Relief

Hurricane Ida victims obtain tax breaks from the IRS

Monday, September 13, 2021

The IRS announced that Hurricane Ida victims now have until November 1, 2021 to file various tax returns for individuals and companies and make tax payments. This relief extends to all areas identified by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. Currently, individuals and households affected by Hurricane Ida who are resident or doing business in all 82 counties and the Mississippi Choctaw Indian Reservation are eligible. The current list of eligible locations is always available on the Disaster Relief page on IRS.gov.

The tax relief will postpone various deadlines for filing tax returns and payments that occurred from August 28, 2021. As a result, data subjects and companies have until November 1, 2021 to file declarations and pay all taxes originally due. This means that individuals who had a valid 2020 return filing extension that expires on October 15, 2021 will now have until November 1, 2021 to submit it. However, the IRS determined that the tax payments related to these 2020 tax returns were due on May 17, 2021, these payments are not eligible for this relief.

The November 1, 2021 deadline also applies to the quarterly estimated income tax payments due on September 15, 2021 and the quarterly wage and excise returns, which are normally due November 1, 2021. Companies with an original or extended due date also have the additional time, which includes, among other things, partnerships with calendar year and S companies whose 2020 renewals expire on September 15, 2021, and calendar year companies whose 2020 renewals expire on October 15, 2021.

The IRS Disaster Assistance page has details on other returns, payments, and tax-related actions that may be eligible for the additional time.

In addition, penalties for wage and excise tax payments due on or after August 28, 2021 and before September 13, will be abolished as long as payments are made by September 13, 2021.

The tax break is part of a coordinated federal response to the damage caused by Hurricane Ida and is based on local damage assessments by FEMA. For information on disaster recovery, see DisasterAssistance.gov.

The Mississippi Department of Revenue (MDOR) announced that it will follow the IRS extended due date of November 1, 2021 to file certain income tax returns. The extension applies to all individual, corporate and franchise, personal and S corporation tax returns and estimated quarterly payments originally due between August 28, 2021 and November 1, 2021. The announcement stated that the state extension does not apply to payments for these returns because tax payments were due on the original due date; therefore the MDOR extension does not seem to apply to these tax payments either.

Taxpayers who have a valid 2020 deadline to file their tax returns now have until November 1, 2021 to file those returns. The renewal does not apply to other types of taxes or payments on previous liabilities.

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