The IRS announced victims of Hurricane Ida now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments. This relief extends to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. This includes the entire state of Louisiana, and taxpayers in certain Ida-impacted localities designated by FEMA in neighboring states, including southern Mississippi, will also receive the same filing and payment relief.
The tax relief postpones various tax filing and payment deadlines that occurred starting on Aug. 26, 2021, for Louisiana taxpayers, and Aug. 28, 2021, for certain Mississippi taxpayers. As a result of the relief, affected individuals and businesses will have until Jan. 3, 2022, to file various tax returns and pay various taxes that were originally due during this period. This means individuals and businesses, who had a valid extension to file their 2020 federal income tax returns, will now have until Jan. 3, 2022, to file their 2020 federal income tax returns. The IRS noted, however, that because tax payments related to these 2020 returns were due earlier in 2021, those payments are not eligible for this relief.
The Jan. 3, 2022, deadline also applies to quarterly estimated income tax payments due on Sept. 15, 2021, and the quarterly payroll and excise tax returns normally due on Nov. 1, 2021. It also applies to tax-exempt organizations, operating on a calendar-year basis, which had a valid extension to file their Form 990s due to run out on Nov. 15, 2021. Businesses with income tax returns on extensions also have the additional time, including, among others, calendar-year corporations whose 2020 extensions run out on Oct. 15, 2021, and calendar-year partnerships and S corporations whose 2020 extensions run out on Sept. 15, 2021.
In addition, penalties on payroll and excise tax deposits due on or after Aug. 26, 2021, and before Sept. 10, 2021, will be abated as long as the deposits are made by Sept. 10, 2021.
While the Departments of Revenue for Louisiana and Mississippi have not made any official announcements, it is anticipated that those states will provide similar relief to taxpayers in those states.
For more information on tax relief in disaster situations, please visit the IRS website.