On September 12, the Internal Revenue Service announced that taxpayers “directly affected” by Hurricane Ike would receive an additional 7 days to file corporate tax returns and third-quarter estimated taxes otherwise due on Monday, September 15, 2008. It was not clear from that announcement which taxpayers would be considered “directly affected.” The Service cleared up that announcement today and, as expected, granted those taxpayers even more time to file.
Following the hurricane’s landfall on Saturday, September 13, the federal government declared the following Texas counties a presidential disaster area qualifying for individual assistance: Angelina, Austin, Brazoria, Chambers, Cherokee, Fort Bend, Galveston, Grimes, Hardin, Harris, Houston, Jasper, Jefferson, Liberty, Madison, Matagorda, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Trinity, Tyler, Walker, Waller and Washington. The Commissioner of the Internal Revenue Service said today that, “We are giving taxpayers in these hard-hit areas until early next year to file their returns and make payments.”
Specifically, today’s relief postpones until January 5, 2009, certain deadlines for taxpayers who reside or have a business in the disaster area. The postponement applies to return filing, tax payment and certain other time-sensitive acts due on or after September 7, 2008, and before January 5, 2009, including individual estimated tax returns and corporate tax returns that were due September 15, and extended individual returns due October 15, 2008.
IRS computer systems will automatically identify taxpayers located in the covered disaster area and apply automatic filing and payment relief. Affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request tax relief.
If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, from September 7, 2008, to January 5, 2009.
If you have any questions as to whether you are an “affected taxpayer,” please email me at response@phdcpa.com or call me at 214.957.3366.
Ronnie
© 2008 Ronnie C. McClure
