As a result of the FEMA disaster designation for the state of Florida, the IRS is granting the relief for individuals whose principal residence is located, and businesses whose principal place of business is located, anywhere in the state of Florida. Other taxpayers are also eligible for relief, including businesses, estates, trusts and individuals whose records are maintained in the state of Florida. The highlights of this relief include (but are not limited to) the following:
- Extension until February 15, 2023 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after September 23, 2022, and before February 15, 2023.
- Estimated income tax payment originally due on or after September 23, 2022, and before February 15, 2023, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before February 15, 2023.
- Casualty losses due to Hurricane Ian may be claimed either in the current tax year or the prior tax year. This means that such losses may be claimed on a calendar year taxpayer’s 2021 tax year instead of 2022.
Thus – Florida resident individuals that obtained a valid extension for their personal income tax return now have until February 15th, 2023, to file that return without incurring a late filing penalty. Keep in mind that this relief is at the federal level only. At this time, states such as Ohio have not granted relief and as such the Ohio personal income tax return is still due on 10/17/22.
Note that you do not have to show harm due to the hurricane to be eligible for the extension relief.
Please note that the relief does not apply to payments that were due prior to September 23, 2022. Thus, while Florida residents have an additional filing extension to file your 2021 Form 1040, the extension does not apply to the payments that were due on 4/18/22.
The information above is intended to cover most of the taxpayers and situations that are eligible for relief. Please contact your AGP representative for more details, including additional situations that may be eligible for relief.