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IRS Announces Tax Relief in Disaster Areas

Tiffany L. Kuntemeier

August 28, 2020

In response to the natural disasters which are damaging regions with US Taxpayers, the IRS has announced these recent devastations as federally declared disaster areas. Counties that have fallen victim to California wildfires and the Iowa derecho storm have been most recently designated as federal disaster areas, and thereby qualify for additional time to make federal payments and file returns.

California counties include (Disaster Date August 14, 2020):  Lake, Monterey, Napa, San Mateo, Santa Cruz, Solano, Sonoma, and Yolo counties.

Iowa counties include (Disaster Date August 10, 2020): Linn county.

To be classified as an “affected taxpayer” for this relief, the following must be true:

  • Your principal residence is located in the counties designated as disaster areas;
  • Your principal residence is not located in a covered disaster area, but your records necessary to meet a filing or payment deadline are maintained in a covered disaster area;
  • You are a relief worker assisting in a covered disaster area;
  • You have a business entity whose principal place of business is located in any of the counties designated as a disaster area;
  • You have a business entity whose principal place of business is not located in a covered disaster area, but your records necessary to meet a filing or payment deadline are maintained in a covered disaster area;
  • You have an estate or trust with tax records necessary to meet a filing or payment deadline that are in a covered disaster area; and/or
  • You are married and filing joint as spouses, with at least one spouse in a covered disaster area.

Affected taxpayers, as of the disaster date, will have an extended date of December 15, 2020 to make federal payments and file returns. This deadline will apply to individuals and businesses (including exempt organizations) whose extended filing deadline falls between the disaster date and December 15. Quarterly estimates due September 15, 2020 and quarterly payroll and excise returns normally due October 31, will now also have until December 15, 2020 to file. 

Please reach out to your Mueller Prost specialist with any questions on these extensions, or how we can help.

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