Tax Relief Announced in Louisiana
NEW ORLEANS – The IRS has rolled out tax relief for both individuals and businesses in Louisiana impacted by the severe winter ice storm that started on January 22. Thanks to this announcement, those affected now have until March 31 to file and pay various federal personal and corporate tax returns.
This follows a disaster declaration from the State of Louisiana, which means that individuals and businesses based in Louisiana are eligible for this relief. This declaration permits the IRS to delay certain tax deadlines for residents in the impacted areas. Essentially, for deadlines that fall after January 22 and before March 31, taxpayers will get some extra time to file their returns.
So, for anyone affected, the deadline to file returns and settle any original taxes owed is set for March 31.
This deadline applies to personal income tax returns and payments that are typically due after January 22. Additionally, penalties for payroll and excise tax deposits that need to be made by February 6 will be lowered, provided those deposits are completed on time.
The March 31 date also includes affected quarterly payrolls and some excise tax returns that would typically be due on February 2.
If any impacted taxpayer receives a notice about a late filing or payment penalty from the IRS regarding returns, payments, or deposits due within this deferred period, they should reach out to the number provided in the notice to ask for penalty relief.
How to Navigate Tax Refunds
The IRS has stated it will automatically recognize taxpayers living in the eligible disaster areas and apply the necessary filing and payment relief. For those living or operating businesses outside the designated areas, relief can be requested by calling the IRS Special Services toll-free at 866-562-5227. Tax officials in the affected areas who have the required records for taxpayers not in the impacted area can also reach out to IRS Special Services. It’s worth noting that practitioners managing records for multiple clients should look into guidance on submitting bulk requests for disaster relief.
The areas identified above qualify as eligible disaster areas under Treasury Regulations, and taxpayers residing in these locations are entitled to the outlined relief.
Those potentially eligible for deferrals include individuals in the impacted zones and businesses, even tax-exempt ones, whose primary operations are based there. Taxpayers located outside the affected areas but who possess vital records needed to meet the deadlines specified in the regulations are also eligible for relief. There are also relief workers from recognized government or charitable organizations available to assist.
