Filing and Payment Deadlines Extended
On October 6, 2020, the IRS stated that it will grant tax relief to Louisiana victims of Hurricane Delta. Taxpayers in disaster areas of Acadia, Calcasieu, Cameron, Jefferson Davis, and Vermilion parishes in Louisiana will now have until February 16, 2021, to file various individual and business tax returns and make tax payments.
The extension includes:
2019 individual and corporate returns that were extended to October 15. However, these extensions do not apply to tax payments related to 2019 returns that were due on July 15 (e.g. extension payments).
tax-exempt organizations, operating on a calendar-year basis, that had a valid extension to November 16,
quarterly estimated income tax payments due on January 15, 2021 (i.e. fourth-quarter estimate),
quarterly payroll and excise tax returns normally due on November 2.
For taxpayers in the areas previously mentioned that were also impacted by Hurricane Laura, there is an additional extension beyond December 31.
Moreover, penalties on payroll and excise tax deposits due after October 6 and before October 21 will be abated as long as the deposits were made by October 21, 2020.
Luckily, the affected taxpayers do not need to contact the IRS to get this relief. However, those taxpayers who lives outside the disaster area, but whose records are located in the affected area, will need to contact the IRS at 866-562-5227 in order to take advantage of the extension relief.
Casualty Losses
Similar to the California wildfires, taxpayers in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses may want to consider claiming these losses on their 2019 or 2020 tax returns. If the taxpayer is claiming the loss, the taxpayer should write the appropriate FEMA declaration number, i.e. 4570 for Hurricane Delta in Louisiana, on their return. For more information, please see Publication 547 or visit disasterassistance.gov.
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