LOUISIANA – Victims of Hurricane Zeta, which began October 26, 2020, now have until March 1, 2021 to file various tax returns for individuals and companies and make tax payments, the Internal Revenue Service said on February 17, 2021.
Following the Federal Emergency Management Agency’s latest disaster declaration, the IRS announced today that affected taxpayers will receive tax breaks in certain areas.
Individuals and households affected by Hurricane Zeta located in or in Acadia, Allen, Ascension, Assumption, Beauregard, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche Business have Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Landry, St. Martin, St. Mary, St. Tammany, Tangipahoa , Terrebonne The parishes of Vermilion, Washington, West Baton Rouge and West Feliciana are eligible for tax breaks. Taxpayers in locations that are later added to the disaster area automatically receive the same registration and payment facility.
The declaration allows the IRS to postpone certain tax filing and tax payment deadlines for taxpayers who reside in the disaster area or have a business. For example, certain deadlines that fall on or after October 26, 2020 and before March 1, 2021 will be postponed to March 1, 2021.
The March 1, 2021 deadline applies to the estimated fourth quarter tax payment due on January 15. It also applies to the quarterly wage and excise tax returns, which are normally due on November 2, 2020 and February 1, 2021 applies to tax-exempt organizations that operate on a calendar year basis and had a valid extension that should expire on November 16. In addition, penalties apply to deposits due on or after October 26, 2020 and before November 10, 2020, will be reduced as long as the tax deposits are made by November 10, 2020.
If an affected taxpayer receives a late filing or late payment notification from the IRS whose original or extended filing, payment or deposit date is within the deferred period, the taxpayer should call the phone number on the notice to have the IRS reduce the penalty . For information about the services currently available, see the IRS Operations and Services page at IRS.gov/Coronavirus.
The IRS automatically identifies taxpayers who are in the disaster area covered and requests filing and discharge. Affected taxpayers who have their residence or business outside of the disaster area covered should call the IRS Disaster Hotline at 866-562-5227 to apply for this tax break.
Covered disaster area
The locations listed above form a covered disaster area for treasure purposes. Reg. § 301.7508A-1 (d) (2) and are entitled to the relief described below.
Affected Taxpayers
Taxpayers Who Are Affected Taxpayers who are entitled to postpone the deadline for filing tax returns, paying taxes, and performing other time sensitive acts are the taxpayers listed in Treas. Reg. § 301.7508A-1 (d) (1), including living persons and companies (including tax-exempt organizations) whose principal place of business is in the covered disaster area. Taxpayers not in the disaster area covered, but whose records are required to meet a deadline specified in Treas. Reg. § 301.7508A-1 (c) are in the covered disaster area and are also entitled to relief. In addition, all relief workers belonging to a recognized government or philanthropic organization involved in the relief effort in the Covered Disaster Area, as well as anyone visiting the Covered Disaster Area and killed or injured as a result of the Disaster, are entitled to assistance.
Pursuant to Section 7508A, the IRS gives affected taxpayers the opportunity to file most tax returns by March 1, 2021 (including individual, corporate, and estate and escrow taxes; partnership, S corporation, and escrow; inheritance, gift, and generation skips) Transfer tax returns, annual information returns from exempt organizations, and employment and certain excise tax returns) whose original or extended due date is on or after October 26, 2020 and before March 1, 2021.
Affected taxpayers whose estimated income tax payment is originally due on or after October 26, 2020 and before March 1, 2021 will be postponed to March 1, 2021. No penalties will be imposed for not paying the estimated tax rates, therefore payments will be made on or before March 1, 2021.
The IRS gives affected taxpayers until March 1, 2021 to take other time-sensitive actions described in Treas. Reg. § 301.7508A-1 (c) (1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (December 10, 2018) to be carried out on or after October 26, 2020 and before March 1, 2021 will be postponed to March 1, 2021.
This facilitation also includes filing 5500 Series returns that had to be submitted on or after October 26, 2020 and before March 1, 2021, which will be postponed to March 1, 2021 as described in Section 8 of the Rev. 1 described Proc. 2018-58. The information contained in Section 17 of Rev. Proc. 2018-58, which relates to the like-for-like exchange of property, also applies to certain taxpayers who are not otherwise affected and may include acts to be performed before or after the above period.
Unless there is an act in Rev. Proc. 2018-58, the postponement of the filing and payment time does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to forms 1042-S, 3921, 3922 or 8027; or to employment and excise duties. However, penalties for deposits due on or after October 26, 2020 and before November 10, 2020 will be reduced as long as the tax deposits are made by November 10, 2020.
Accidental damage
Affected taxpayers in a disaster area declared by the federal government have the option of claiming disaster-related accident damage in their income tax return for the year in which the event occurred or for the previous year. See publication 547 for details.
Individuals can deduct losses to personal property that are not covered by insurance or other reimbursements. For details, see Form 4684, Victims and Thefts and Instructions.
Affected taxpayers claiming the catastrophe loss on a 2019 or 2020 tax return should include the disaster description “Louisiana – Hurricane Zeta” in bold at the top of the form. Make sure to include the FEMA 4577 Disaster Statement number on every return. See publication 547 for details.
Other relief
The IRS waives the usual fees and requires copies of previously filed tax returns for affected taxpayers. Taxpayers should include the assigned disaster designation “Louisiana – Hurricane Zeta” in bold at the top of Form 4506 Tax Return Request or Form 4506-T Tax Return Request and submit it to the IRS.
Affected taxpayers who are contacted by the IRS about a collection or auditing matter should explain how the disaster will affect them so that the IRS can adequately consider their case. Taxpayers can download forms and publications from the official IRS website IRS.gov.