IR-2023-184, Sept. 29, 2023, WASHINGTON-- The Internal Revenue Service today announced tax relief for services and individuals impacted by seawater invasion in parts of Louisiana. These taxpayers now have till Feb. 15, 2024, to file numerous federal private and service tax returns and make tax payments.

Following the disaster declaration provided by the Federal Emergency Management Agency (FEMA), people and households affected by the seawater invasion that have a company or reside in Jefferson, Orleans, Plaquemines and St. Bernard parishes receive tax relief. The existing list of qualified regions is constantly offered and updated on the disaster relief page on IRS.gov.

Filing and Payment Relief

The tax relief holds off different tax filing and payment due dates that happened from Sept. 20, 2023, through Feb. 15, 2024 (post ponement duration). As a result, affected individuals and businesses will have up until Feb. 15, 2024, to submit returns and pay any taxes that were initially due throughout this period.

This indicates, for instance, that the Feb. 15, 2024, deadline will now apply to:

The IRS noted, nevertheless, that since tax payments related to these 2022 returns were due on April 18, 2023, those payments are not qualified for this relief. This is more time to submit, not to pay.

• Quarterly estimated income tax payments typically due on Jan. 16, 2024.


• Quarterly payroll and excise tax returns typically due on Oct. 31, 2023, and Jan. 31, 2024.


• Calendar-year corporations whose 2022 extensions abandon Oct. 16, 2023.


• Calendar-year, tax-exempt companies whose extensions run out on Nov. 15, 2023.

In addition, penalties for the failure to make payroll and excise tax deposits due on or after Sept. 20, 2023, and before Oct. 5, 2023, will be abated as long as the deposits are made by Oct. 5, 2023.

The IRS disaster relief page has details on other returns, payments and tax-related actions receiving relief during the postponement period.

The IRS immediately supplies filing and charge relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not require to get in touch with the agency to get this relief.

It is possible an affected taxpayer might not have an IRS address of record found in the disaster area, for example, because they transferred to the hot spot after submitting their return. In these sort of special scenarios, the affected taxpayer might get a late filing or late payment penalty notice from the IRS for the postponement period. The taxpayer ought to call the number on the notification to have the penalty eased off.

In addition, the IRS will deal with any taxpayer who lives outside the hot spot however whose records needed to fulfill a due date happening throughout the post ponement duration lie in the affected location. Taxpayers getting approved for relief who live outside the hot spot need to contact the IRS at 866-562-5227. This likewise consists of workers helping the relief activities who are affiliated with an acknowledged federal government or humanitarian company.

Extra Tax Relief

Individuals and organizations in a federally stated disaster area who suffered unreimbursed or uninsured disaster-related losses can select to claim them on either the return for the year the loss occurred (in this circumstances, the 2023 return typically submitted next year), or the return for the prior year (2022 ). Taxpayers have additional time-- up to six months after the due date of the taxpayer's federal tax return for the disaster year (without regard to any extension of time to file)-- to make the election. Make sure to write the FEMA declaration number-- 3600-EM − on any return declaring a loss. See Publication 547, Disasters, casualties, and thefts, for information.

Qualified catastrophe relief payments are generally omitted from gross earnings. In basic, this indicates that affected taxpayers can leave out from their gross income quantities gotten from a federal government agency for sensible and essential individual, household, living or funeral costs, along with for the repair or rehab of their home, or for the repair or replacement of its contents. See Publication 525, Nontaxable and taxable Income, for information.

Extra relief may be available to affected taxpayers who take part in a retirement strategy or private retirement arrangement (IRA). A taxpayer might be eligible to take an unique disaster distribution that would not be subject to the extra 10% early circulation tax and allows the taxpayer to spread the earnings over three years.

The IRS may provide additional catastrophe relief in the future.

The tax relief becomes part of a collaborated federal reaction to the damage brought on by this catastrophe and is based upon regional damage control by FEMA. For info on disaster healing, check out disasterassistance.gov.