Louisiana storm victims will have until January 17, 2017

to file certain Federal individual and business tax returns and make certain Federal tax payments, the Internal Revenue Service announced Monday.  All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief.  Taxpayers in East Baton Rouge, Livingston, St. Helena, Tangipahoa, Acadia, Ascension, East Feliciana, Iberia, Lafayette, Pointe Coupee, St. Landry, Vermillion, Avoyelles, Evangeline, Iberville, Jefferson Davis, St. Martin, St. Tammany, Washington, and West Feliciana parishes will receive this and other special tax relief.

The Federal tax relief

postpones various tax filing and payment deadlines that occurred starting on August 11, 2016.  As a result, affected individuals and businesses will have until January 17, 2017 to file Federal returns and pay any Federal taxes that were originally due during this period.  This includes the September 15, 2016 deadline for making quarterly estimated tax payments.  For individual tax filers, it also includes 2015 income tax returns that received a tax-filing extension until October 17, 2016. The IRS noted, however, that because tax payments related to these 2015 returns (see more on this below) were originally due on April 18, 2016, they are not eligible for this relief.  A variety of business tax deadlines are also affected including the September 15, 2016 deadline for corporation and partnership returns on extension and the October 31, 2016 deadline for quarterly payroll and excise tax returns.

In addition, the IRS is waiving late-deposit penalties for federal payroll and excise tax deposits normally due on or after August 11, 2016 and before August 26, 2016 if the deposits are made by August 26, 2016.  Details on available relief can be found on the disaster relief page on IRS.gov.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area.  Thus, taxpayers need not contact the IRS to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area.  Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227.

What does this mean for you?

  • Any 2015 individual or business tax return (including trusts) with an extended due date ON OR AFTER August 11, 2016 will now be extended until January 17, 2017 (Federal tax returns)
    • This includes 2015 individual income tax returns originally due April 18, 2016 but on extension until October 17, 2016. 
    • This includes S Corporations and C Corporations originally due March 15, 2016 but on extension until September 15, 2016 as well as partnerships and trusts originally due April 18, 2016 but on extension until September 15, 2016.
    • This includes 2016 3rd quarter estimated (quarterly) tax payments due September 15, 2016.
    • This includes 2016 3rd quarter payroll tax returns due October 31, 2016
  • CAUTION:  This relief does not apply to Federal taxes owed prior to August 11, 2016.
    • What do we mean by this?
      • Consider your 2015 Federal individual income tax return originally due April 18, 2016.  If you filed for an extension but did not pay ALL of the tax due, any penalty/interest accruing from April 18, 2016 will continue to accrue.  The individual extension extends the time to file the return (originally until October 15, 2016, now until January 17, 2017 based on the info above) but does NOT extend the time to pay your tax.

In addition to the Federal relief detailed above, the Louisiana Department of Revenue has also granted relief.  Individual and corporate tax returns as well as estimated payments due on or after August 11, 2016 (including returns on extension) will have an extended deadline of January 17, 2017.  This new due date mirrors the Federal extended due date.

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