In a recent announcement, the Internal Revenue Service (IRS) extended a helping hand to individuals and businesses grappling with the aftermath of severe storms, flooding, and potential dam breaches in parts of Connecticut. Affected taxpayers now have until June 17, 2024, to file various federal individual and business tax returns and make necessary payments. This relief, applicable to areas designated by the Federal Emergency Management Agency (FEMA), currently encompasses New London County, including the Mohegan Tribal Nation and Mashantucket Pequot Tribal Nation.
Filing and Payment Relief
The IRS’s proactive approach provides much-needed respite, postponing various tax filing and payment deadlines that occurred between Jan. 10, 2024, and June 17, 2024. Affected individuals and businesses now have until the latter date to meet their tax obligations. This extension applies to a range of scenarios, from individual income tax returns to quarterly payroll and excise tax returns.
Crystal Clear Tax Tip: If you find yourself in the affected area, be aware that penalties for failing to make certain tax deposits will be abated, provided they are made by Jan. 25, 2024.
Seamless Relief Process
The IRS automatically grants filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. However, unique circumstances, such as a recent move to the disaster area, may lead to late filing or payment penalties. In such cases, affected taxpayers should promptly call the number on the penalty notice to have the penalty abated.
Moreover, the IRS commits to assisting taxpayers living outside the disaster area whose essential records are located in the affected region. These taxpayers can contact the IRS at 866-562-5227 for personalized assistance.
Extensions and Additional Relief
The IRS encourages those in need of an additional tax-filing extension beyond June 17 for their 2023 federal income tax return to request it electronically by April 15. While a disaster-area taxpayer qualifies to request an extension between April 15 and June 17, a request filed during this period can only be submitted on paper. Payments, however, remain due on June 17.
Crystal Clear Tax Insight: Individuals and businesses facing uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred or the prior year, offering flexibility and additional time.
Qualified Disaster Relief Payments
In times of crisis, clarity regarding income is crucial. Qualified disaster relief payments, generally excluded from gross income, provide a financial lifeline. These payments cover essential expenses, home repairs, and replacements.
Moreover, affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA) may be eligible for special disaster distributions and hardship withdrawals, with specific rules and guidance for each plan or IRA participant.
The IRS remains open to providing additional disaster relief in the future, emphasizing a coordinated federal response to storm-induced damage based on local assessments by FEMA.
Crystal Clear Tax Services: Your Partner in Financial Stability
In the wake of such challenges, Crystal Clear Tax stands ready to support affected individuals and businesses. Our suite of services includes accounting and bookkeeping, financial advisory, and comprehensive tax services for both individuals and corporations.
For single-mom entrepreneurs and professionals in various industries seeking to streamline their financial responsibilities, Crystal Clear Tax is more than a service provider – we are your dedicated partners.
Book a call with us today! Let Crystal Clear Tax be your beacon of support, guiding you toward financial stability and peace of mind.
