IRS Offers Tax Relief for Hurricane Matthew Victims

Wednesday, October 19, 2016

From Accounting Today Website. Read Original Article

The Internal Revenue Service is giving victims of Hurricane Matthew in North Carolina extra time to file their tax returns and make tax payments.

North Carolina victims of the hurricane that left a path of destruction and flooding this past weekend will get until March 15, 2017, to file certain individual and business tax returns and make certain tax payments, with similar relief expected soon for Hurricane Matthew victims in other states, the Internal Revenue Service said Friday. Besides North Carolina, the storm also did extensive damage in Florida, South Carolina, Georgia, Virginia and other states. At least 34 people have died as a result, and flooding is continuing as of Monday in parts of North Carolina

The IRS said that all workers who help with the relief activities abd who are affiliated with a recognized government or philanthropic organization will also qualify for relief.

The Federal Emergency Management Agency has declared a disaster, opening up federal assistance, and the IRS said that affected taxpayers in Beaufort, Bladen, Columbus, Cumberland, Edgecombe, Hoke, Lenoir, Nash, Pitt and Robeson counties will receive this and other special tax relief. Locations in other states are expected to be added in coming days, based on damage assessments by FEMA.

The tax relief postpones various tax filing and payment deadlines starting Oct. 4, 2016. As a result, the affected individuals and businesses will have until March 15, 2017, to file tax returns and pay any taxes that were originally due during this period. That includes the January 17 deadline for making quarterly estimated tax payments. For individual tax filers, it also includes 2015 income tax returns that received a tax-filing extension until Oct. 17, 2016. The IRS pointed out, that, that because tax payments related to these 2015 returns were originally due on April 18, 2016, those are not eligible for this relief.

Several business tax deadlines are also impacted, including the October 31 and January 31 deadlines for quarterly payroll and excise tax returns. It also includes the special March 1 deadline that applies to farmers and fishermen who choose to forgo making quarterly estimated tax payments.

In addition, the IRS said it is waiving late-deposit penalties for federal payroll and excise tax deposits that are normally due on or after October 4 and before October 19 if the deposits are made by October 19, 2016. For more details, check the disaster relief page on

The IRS noted that it automatically provides filing and penalty relief to any taxpayer whose IRS address of record is located within a disaster area, so taxpayers don’t need to contact the IRS to get the relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the tax penalty abated.

The IRS said it will also work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers who qualify for relief but live outside the disaster area should call the IRS at (866) 562-5227.