Tax Relief for Victims of Hurricane Ida
Little did I know – or imagine – as I wrote our May-June nine-part series on expecting the unexpected and preparing for it (first installment here) that we’d all be experiencing an unexpected and catastrophic event so soon!
We’re sending this email today rather than our usual Wednesday so as to keep you informed to the best of our ability. It’s now over 36 hours since Hurricane Ida made landfall, our team is all safely evacuated, and Rigby Financial Group is open for business.
In the coming days we’ll be providing guidance on relief and recovery from this disastrous hurricane.
Today’s topic is the announcement by the IRS (IR-2021-175) that it is granting tax relief to Ida’s victims – in any area designated as qualifying by the Federal Emergency Management Agency (FEMA). These areas currently include the entire State of Louisiana as well as many parts of the State of Mississippi.
The relief is provided for filing and payment deadlines occurring on or after August 26, 2021.
Those individuals and businesses who filed extensions for their 2020 tax returns will now have until January 3, 2022 to file their 2020 returns.
Quarterly estimated income tax payments due on September 15, 2021 have also been granted an extension until January 3, 2022, as have quarterly payroll and excise tax returns which would have fallen due on November 1, 2021.
Penalties on payroll and excise tax deposits due between August 26, 2021 and September 10, 2021 will be abated if deposits are made by September 10, 2021.
Further, both individuals and businesses in the federally declared disaster areas can choose to claim uninsured and/or unreimbursed losses as a result of Hurricane Ida can claim these losses either on their 2021 income tax returns or on their 2020 returns (via filing an amended tax return if their 2020 tax return was filed previously). Any return claiming such losses should include FEMA declaration number 4611 to identify Hurricane Ida-related losses.
We’re working on getting you more information on tax and financial issues relating to Hurricane Ida:
- Insurance coverage for living expenses due to mandatory evacuation
- How to deal with uninsured/unreimbursed casualty losses
- Calculating business loss of income
- Business loss claims and coverage
- 401(k) loans and distributions not subject to penalties
I recommend strongly that you consult with us before making any tax or financial decisions in Ida’s wake. My direct line is 504-586-3051, and my cell is 504-442-3050.
Getting the right decision implemented effectively is far better than getting something done immediately, which may in hindsight prove to have been less than an optimal decision.
Please click here to let me know how I can help you.
Until next time –