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Trevor Wilson can be reached at twilson@joneswalker.com or 225.248.2122.

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.Continue Reading Tax Relief Available to Victims of Hurricane Ida

Over the weekend, President Trump signed an executive order purporting to defer the payment of the employee’s share of the Social Security portion of FICA (payroll) tax from September 1, 2020, until December 31, 2020. The order is limited to only the employee’s share of the Social Security portion of the payroll tax, which is currently set at 6.2%. The order does not affect the Medicare portion of the payroll tax (1.45%), nor does the order affect the employer portion of the payroll tax, so these will still have to be withheld (where applicable) and deposited on a timely basis. The order also limits deferrals to employees with biweekly, pretax income of less than $4,000, or a similar amount where a different pay period applies. This roughly equates to an annual salary of $104,000. Importantly, the order is not a suspension of the payroll tax (a “payroll tax holiday”), but merely a deferral. The president directed the Treasury to seek ways to implement a full suspension at a later date, including by legislative action.
Continue Reading Trump Signs Payroll Tax Deferral Executive Order

On June 5, President Trump signed the Paycheck Protection Program Flexibility Act of 2020 (the Flexibility Act). The act revised, in certain important respects, elements of the Paycheck Protection Program (PPP) that had appeared in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as supplemented by a series of interim final rules and FAQs published by the Small Business Administration (SBA). Below is a summary of the changes.Continue Reading Enactment of Paycheck Protection Flexibility Act of 2020

As a result of the devastation wrought by Hurricanes Harvey and Irma, the following counties have been declared as major disaster areas, all of which are entitled to federal tax filing and payment relief:

In Texas: Aransas, Austin, Bastrop, Bee, Brazoria, Calhoun, Chambers, Colorado, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Hardin, Harris, Jackson, Jasper, Jefferson, Karnes, Kleberg, Lavaca, Lee, Liberty, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio, Tyler, Victoria, Walker, Waller and Wharton Counties.

In Florida: Broward, Charlotte, Clay, Collier, Duval, Flagler, Hillsborough, Lee, Manatee, Miami-Dade, Monroe, Palm Beach, Pinellas, Putnam, Sarasota and St. Johns Counties.

Taxpayers whose principal residence or a business’ principal place of business was located in one of the counties declared as a major disaster area are entitled to certain federal tax relief for the 2016 tax year. This federal tax relief includes: (a) the suspension of certain deadlines to file tax returns; (b) the suspension of certain deadlines to pay taxes; and (c) the ability to claim casualty losses incurred as a result of Hurricanes Harvey and Irma.Continue Reading IRS Provides Tax Filing and Payment Relief to Hurricane Victims

On August 14, 2016, President Obama declared several parishes in southern Louisiana major disaster areas because of the severe storms and flooding that occurred. These parishes included Acadia, Ascension, Avoyelles, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Livingston, Pointe Coupee, St. Helena, St. James, St. Landry, St. Martin, St. Tammany, Tangipahoa, Vermilion, Washington, West Baton Rouge, and West Feliciana.

If your principal residence is located in one of these parishes or your business’ principal place of business is located in one of these parishes, the designation of these parishes as a federally declared disaster area provides you with certain federal tax relief. This federal tax relief includes not only the suspension of certain deadlines to file tax returns or pay taxes, but also the ability to claim casualty losses incurred in the flooding on 2015 tax returns.
Continue Reading Federal Tax Return Filing and Payment Relief