Wednesday September 1, 2021
The IRS announced that Hurricane Ida victims now have until January 3, 2022 to file a variety of 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. This includes the entire state of Louisiana, and taxpayers in certain Ida-affected localities named by FEMA in neighboring states, including southern Mississippi, also receive the same filing and payment facility.
The tax break is postponing various deadlines for filing taxes and payments that began August 26, 2021 for Louisiana taxpayers and August 28, 2021 for certain Mississippi taxpayers. As a result of the relief, affected individuals and businesses have until January 3, 2022 to file various tax returns and pay various taxes that were originally due during that period. This means that individuals and businesses who had a valid extension to file their 2020 federal income tax returns will now have until January 3, 2022 to file their 2020 federal income tax returns. However, the IRS noted that these payments were not eligible for this relief because tax payments related to these 2020 tax returns were due earlier in 2021.
The January 3, 2022 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. It also applies to tax-exempt organizations operating on a calendar year basis who had a valid renewal to submit their Form 990s, which expires on November 15, 2021. Companies with income tax returns on renewals also have the additional time, including but not limited to calendar year companies whose 2020 renewals expire on October 15, 2021 and calendar year partnerships and S companies whose 2020 renewals expire on September 15, 2021.
In addition, penalties are imposed Payroll and excise tax deposits due on or after August 26, 2021 and before September 10, 2021 will be waived as long as the deposits are made by September 10, 2021.
Although the Louisiana and Mississippi Treasury departments have not made any official announcements, it is expected that these states will provide similar relief to taxpayers in those states.
For more information on disaster tax breaks, please visit the IRS website.