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Residents of certain Michigan counties can wait until November 1, 2021 to file federal tax returns and make tax payments that would normally be due before that date. The IRS extended deadlines because of the severe storms, floods, and tornadoes that began on June 25, 2021 in parts of the state declared disaster areas by the Federal Emergency Management Agency (FEMA). The tax break applies to residents of Washtenaw and Wayne Counties.
Various due dates for tax returns and payments for individuals and companies from June 25th to October 31st will be postponed to November 1st, 2021. While this does not include tax payments related to 2020 tax returns due on May 17, 2021, this includes:
Estimated quarterly income tax payments, typically due September 15;
Quarterly wage and excise tax returns, usually due on August 2nd;
Valid renewal requests normally due October 15th; and
Filing Form 2290, Heavy Road Vehicle Use Tax Return, normally due August 31st.
The wage and excise tax payments due from June 25 to July 12 are also not paid if the payments were made by July 12, 2021.
You don’t have to go to the IRS to get this relief. However, if you receive a late filing or late payment notice from the IRS whose original or extended filing, payment or deposit due date falls within the grace period, you should call the number on the notice to waive the penalty.
The IRS is also waiving fees for obtaining copies of previously filed tax returns for taxpayers affected by the storm. To request copies of a tax return or tax return log, write “Michigan Severe Storms, Flooding and Tornadoes” in bold at the top of Form 4506 (copy of the return) or Form 4506-T (transcript) and submit it to the IRS.
In addition, the IRS will work with any taxpayer who lives outside of Michigan but whose records are in the state for a deadline during the grace period. Taxpayers eligible for an exemption and residing in another state must contact the IRS at 866-562-5227. This also includes auxiliaries who are affiliated with a recognized government or philanthropic organization.
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Individuals and companies in a federally declared disaster area who have suffered uninsured or non-reimbursed disaster-related damage can either refer to the declaration for the year in which the damage occurred (in this case the declaration for 2021, which is normally submitted in the next year) or assert the declaration for the previous year. This means that taxpayers can claim these losses on their 2020 tax returns. Be sure to write the FEMA Declaration Number (FEMA 4607-DR) on any return claiming a loss. It is also a good idea for affected taxpayers claiming disaster damage on a 2020 statement to put the disaster name (“Michigan Severe Storms, Flooding and Tornados”) in bold at the top of the form. See IRS Publication 547 for more information.
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