After the President declared a federal disaster area in North Carolina, the IRS announced that it will provide tax relief for victims impacted by Tropical Storm Fred. Residents affected by Tropical Storm Fred that reside in and/or have a business in Avery, Buncombe, Haywood, Madison, Transylvania, Watauga, or Yancey quality for tax relief as issued by FEMA. The extension covers certain deadlines falling on or before August 16th and before December 15th, and are now postponed through December 15th, 2021. The relief includes time-sensitive items tax items such as:
- Individual, corporate, estate, and trust income tax returns
- Partnership, S corporation, and trust returns
- Estate, gift, and generation-skipping transfer tax returns
- Annual information returns of tax-exempt organizations
- Employment and certain excise tax returns
As long as installments are paid on or before December 15th, 2021, affected taxpayers that fall under any of these categories, and that are within the targeted dates, are not subject to penalties for failure to pay. Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. Affected taxpayers can also claim disaster-related losses on either their 2020 or 2021 tax returns. Those claiming a loss must write “North Carolina- Remnants of Tropical Storm Fred” at the top of their tax return in order for the IRS to process refunds in a timely manner.
If you live or have a business located outside of the primary disaster area, but were still affected by Tropical Storm Fred, you can contact the IRS to request relief.
Have more questions? Reach out to an expert at SLK CPAs.