Kentucky storm and flood victims have until November 15, 2022 to apply for certain tax relief according to the Tax Service (IRS) effective August 2, 2022. Relief is available when filing certain personal and business income tax returns and when paying taxes, according to the agency.
The relief just announced extends certain tax filing and payment deadlines from July 26, 2022. Affected individuals and businesses will now have until November 15, 2022 to file returns and pay taxes. originally due during this period.
Key points to remember
- Residents of certain Kentucky counties now have until November 15, 2022 to file and pay certain taxes.
- The list of currently eligible localities is available on the IRS Disaster Relief Page.
- Eligible taxpayers who requested an extension until October 17, 2022 now have until November 15, 2022 to file their taxes.
- There is, however, no extension to pay taxes due on April 18, 2022.
- The extension applies to estimated quarterly taxes originally due on September 15, 2022.
- Deposit and payment relief is automatic for those living in a declared disaster area.
Eligible locations
Areas designated by the Federal Emergency Management Agency (FEMA) as eligible for individual or state assistance are eligible for tax relief. Currently, households and individuals in the following counties are eligible for relief:
- Breathtaking
- Clay
- Floyd
- Johnson
- Knot
- Leslie
- letcher
- Magoffin
- Martin
- owley
- Pear
- Pike
- Wolf
- Areas added later will be eligible for the same relief with the same time frame. Check the IRS Disaster Relief Page for the most up-to-date list.
Relief available
The tax relief announced today extends the deadlines for filing and paying taxes that would have applied from July 26, 2022. Eligible taxpayers in designated areas have until November 15, 2022 to file and pay. This includes:
- People who had a valid extension to file their 2021 return were due to expire on October 17, 2022.
- Taxpayers who owe an estimated quarterly income tax payment due September 15, 2022
- Those with quarterly wage and excise tax returns normally due August 1 and October 31.
- Businesses with an initial or extended maturity date, including calendar year partnerships and S corporations whose 2021 extensions expire on September 15, 2022, and calendar year corporations whose 2021 extensions expire on October 17 2022.
Additionally, anyone owing a penalty on payroll and excise tax deposits due on or after July 26 and before August 10 will be reduced as long as the deposits are made before August 10, 2022.
The Disaster assistance and emergency relief for individuals and businesses The page contains details of other tax-related actions that are eligible for an extension.
Although the filing deadline for those who requested an extension to October 17 on their 2021 return is now November 15, tax payments related to these declarations are not eligible for this relief.
Relief is mostly automatic
The IRS will automatically provide relief to taxpayers with an IRS address inside the disaster area. These taxpayers do not need to contact the agency or file any documents to obtain tax relief. Any taxpayer who receives a penalty notice for late filing or payment that they believe to be in error should call the number listed on the notice to have the penalty reduced.
Taxpayers who live outside the designated disaster areas but whose records are in one of the designated areas should contact the agency at 866-562-5227 to request assistance. This includes workers involved in relief activities who are affiliated with a recognized government or philanthropic organization.
Taxpayers with disaster losses
Individuals and businesses in a federally declared disaster area who experience uninsured or unreimbursed disaster-related losses can claim the loss:
- on their tax return for the year the loss occurred (2022, filed in 2023); Where
- on their declaration for the previous year (2021) by filing an amendment to this declaration.
Taxpayers are advised to include the FEMA return number – DR-4663-KY – on any return reporting a loss. IRS Publication 547 provides additional details.
The essential
This just-announced tax relief is part of a coordinated federal response to damage from recent storms in Kentucky and based on FEMA damage assessments. The extension of the deadline for filing, and in some cases payment, to November 15, 2022, recognizes the need for taxpayers and businesses to recover financially from this disaster.
Based on a taxpayer’s listed IRS address, most extensions to file and pay are automatic. Taxpayers who receive what they believe to be an erroneous notice or penalty should contact the IRS for assistance. Disaster relief is an ongoing and evolving process. For more information on disaster recovery, go to assistancecatastrophe.gov.