Investing News

IRS Announces Tax Relief for Hurricane Ian Victims in Florida

Victims of Hurricane Ian in Florida now have until Feb. 15, 2023 to file their 2021 federal individual and business tax returns. The Internal Revenue Service (IRS) says that the tax relief postpones various tax filing and payment deadlines that occurred starting on September 23, 2022.

The filing extension is only available to individuals who already had a valid extension to file their 2021 return.

The relief applies to any area designated by the Federal Emergency Management Agency (FEMA). This includes any resident or business that resides in Florida. The full list of eligible localities is available on the disaster relief page of the IRS website.

Key Takeaways

  • Hurricane Ian victims in Florida now have until Feb. 15, 2023, to file returns originally due Oct. 17, 2022.
  • Payments originally due before Sept. 23, 2022, are not eligible for relief.
  • Tax filing and payment deadlines on or after Sept. 23, 2022, are eligible for relief.
  • The relief applies to victims in all Florida localities designated by FEMA.

September 23, 2022 Marks the Start of Relief

The relief postpones filing and payment deadlines that occurred starting on Sept. 23, 2022. Affected individuals and businesses in the state of Florida will have until Feb. 15, 2023 to file returns and pay taxes that were due during the period starting on Sept. 23.

If you had a valid extension to file (not pay) until Oct. 17, 2022, you now have until Feb. 15, 2023 to file. The Feb. 15 deadline also applies to quarterly estimated income tax payments due on Jan. 17, 2023 and quarterly payroll and excise tax returns normally due on Oct. 31, 2022 and Jan. 31, 2023.

Businesses with an original or extended due date after Sept. 23 have until Feb. 15, 2023 to file and pay. Tax-exempt organizations are also eligible for the extended deadline, including for 2021 calendar-year returns with extensions due to run out on Nov. 15, 2022.

Penalties on payroll and excise tax deposits due after Sept. 23, 2022 and before Oct. 10, 2022 will be abated as long as the deposits are made by Oct. 10, 2022.

All Florida Residents Are Automatically Eligible

Residents of Florida do not have to apply for filing, payment, or penalty relief. It is automatically extended by the IRS to anyone with an IRS address of record located in the disaster area. If you receive a late filing or late payment penalty notice from the IRS and your due date falls on or after Sept. 23, 2022, you should call the IRS number on the notice to have your penalty abated.

Iff you live outside the disaster area but have records necessary to meet an IRS deadline located inside the area, the agency will work with you to make sure you are not penalized. This also applies to relief workers affiliated with a recognized government or philanthropic organization. Affected individuals or workers should call the IRS at 866-562-5227 to obtain help.

Hurricane Ian Disaster-Related Losses

If you or your business suffered uninsured or unreimbursed disaster-related losses, you can claim them on either the return for 2022 (filed in 2023) or the return for last year (2021). Make sure you write the FEMA declaration number DR-4673-FL on any return claiming a loss.

The Bottom Line

The tax relief is based on local damage assessments by FEMA and is part of a coordinated federal response to the damage caused by Hurricane Ian. If you live or work in Florida or any of the localities designated as a disaster area due to Hurricane Ian

by FEMA, you are automatically eligible for tax filing and, in some cases, payment postponement until Feb. 15, 2023. To qualify, your original or extended deadline must occur on or after Sept. 23, 2022.

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