The Internal Revenue Service announced this week that individual and business filers who are victims of Hurricane Harvey whose returns are under a valid extension, have until January 31, 2018 to file certain tax returns and make certain tax payments.
Effective date of Relief: This relief is effective for tax filing and payment deadlines that occurred beginning on August 23, 2017.
Postponement Period: August 23, 2017 – January 31, 2018
Texas Counties Eligible for Relief: See IRS Disaster Relief Page for up to date information
How is Relief Granted: The IRS automatically grants relief (late filing and late payment penalty) to a taxpayer with an IRS address of record located in the disaster area.
Caution: Taxpayers should be very careful not to change their address of record with the IRS to their current address due to relocation.
What does this mean for your individual and business clients?
- 2016 federal income tax returns with a valid extension until October 16, 2017 are now due January 31, 2018.
- Estimated tax payments with an original due date of September 15, 2017 and January 16, 2018 are now due January 31, 2018.
- 2016 federal income tax returns with a valid extension until September 15, 2017 or October 16, 2017, are now due January 31, 2018.
- Calendar and fiscal year businesses with estimated tax payments due that falls within the postponement period are now due January 31, 2018.
- Quarterly payroll and excise tax returns with an original due date of October 31, 2017 are now due January 31, 2018.
- Failure to deposit penalties will be waived for late paid payroll and excise tax deposits due on or after August 23, 2017 and before September 7, 2017, if deposits are made by September 7, 2017
IMPORTANT NOTE: If you have clients that do not reside in the disaster area but their records necessary to meet a tax deadline occurring during the postponement period are located in the disaster area, they are eligible for relief.
For more information, see the entire IRS News Release (IR-2017-135) on the IRS website.
Visit the Tax Alliance Conference page for more information and updates and register for the 2018 Tax Alliance Conference in Plano, TX, June 5 – 7, 2018.