Severe weather has significantly impacted Michigan as storms, tornadoes, and floods hit on August 24, 2023. IRS offered tax relief. The new deadline is June 17, 2024.
Who is Eligible for This Relief?
The IRS is providing support to areas hit by severe weather in Michigan. This support covers FEMA-designated counties like Eaton, Ingham, and others. Residents and businesses in these areas get more time to meet tax deadlines penalty-free. If more Michigan areas are declared disaster zones, they will also qualify for relief.
Comprehensive Relief Measures
Deadlines were paused on August 24, 2023. Taxpayers now have an extension. Their new deadline is June 17, 2024. This pause includes filing individual tax returns and payments. It also covers contributions to IRAs and health savings accounts. Quarterly estimated tax payments, quarterly payroll, and excise tax returns are included as well. Extended deadlines affect partnerships, S corporations, corporations, fiduciaries, and tax-exempt organizations. Those with an extension for 2022 returns still benefit. Taxes for 2022 are not included in the relief. Penalties will be waived for late deposits. These deposits should have been due between August 24 and September 8, 2023.
How to Avail of This Extension?
Disaster-affected taxpayers get automatic filing and penalty relief from the IRS. This applies if the IRS address of record is within the disaster area. Those with addresses outside the disaster area can still receive a reduction by calling the number on their penalty notice. This could happen after recent moves.
Taxpayers with necessary records in the disaster area but living outside it are accounted for. They can contact the IRS. Relief workers from approved organizations are also included here.
The deadline for the 2023 federal income tax return is June 17. Those who need more time can request an electronic extension until April 15. An extension requested between April 15 and June 17 must be in paper format. This provides an extended filing deadline until October 15, 2024. However, payment due dates remain unchanged at June 17.
Additional Relief Options
The IRS allows individuals and businesses to claim disaster losses. These are for uninsured or unreimbursed losses. Losses can be claimed for the year they occurred or the preceding year. Taxpayers get extra time to decide for the 2023 tax year. They have until October 15, 2024, to make this election. Submitting a loss claim denoting the FEMA declaration number 4757-DR is essential on any return.
Qualified disaster relief payments are generally not part of gross income. These are payments from government agencies. They are meant for personal, family, or living expenses, funeral costs, and home repairs or rehabilitation. Taxpayers impacted by storms can look into special disaster distributions. These come from retirement plans or IRAs. They are exempt from the standard 10% early distribution tax. The distribution income can be spread over three years. Taxpayers may also consider hardship withdrawals.
The IRS's new tax relief measures respond to recent storm damages. The response is a coordinated federal effort. Future relief from the IRS will depend on FEMA's reports. Taxpayers should visit DisasterAssistance.gov for information.
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