IRS Extends Tax Deadlines for Vermont Flood Victims
The Internal Revenue Service (IRS) has announced a significant tax relief initiative for victims of the recent flooding in Vermont.
The agency is extending various individual and business tax return filing and payment deadlines to November 15, 2023.
This measure aims to provide essential financial relief to those affected by the disaster.
Eligibility for Tax Relief
The tax relief applies to all areas designated as disaster zones by the Federal Emergency Management Agency (FEMA). This includes any taxpayer with a recorded address in the disaster area.
Therefore, individuals and businesses located in any of Vermont's 14 counties are eligible for tax relief. The IRS has clarified that the tax relief postpones several tax filing and payment deadlines that were initially set to occur on or after July 7, 2023.
More information about the eligibility criteria can be found on the IRS disaster relief page.
Extended Deadlines
The extended deadlines apply to a variety of tax filings and payments. These include individual tax returns that had a valid extension to October 16, 2023, quarterly estimated income taxes typically due on September 15, and business returns with an extension to September 15 or October 16.
However, tax payments related to these 2022 returns that were due on April 18, 2023, are not eligible for this relief.
Penalty Waivers
In addition to the extended deadlines, the IRS will also waive penalties on payroll and excise tax deposits due between July 9 and July 25, provided the deposits are made by July 25.
This is part of the IRS's efforts to alleviate the financial burden on those affected by the floods.
Automatic Relief and Penalty Abatement
The IRS has stated that the relief will be automatically provided to any taxpayer with an IRS address of record located in the disaster area. Therefore, these taxpayers do not need to contact the agency to receive the relief.
However, if a 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 within the postponement period, they should call the number on the notice to have the penalty abated.
Assistance for Taxpayers Outside the Disaster Area
The IRS is also willing to work with any taxpayer who lives outside the disaster area but has records necessary to meet a deadline located within the affected area. These taxpayers, including workers assisting the relief activities affiliated with a recognized government or philanthropic organization, need to contact the IRS to qualify for the relief.
Claiming Disaster Losses
Lastly, individuals and businesses in the federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed next year), or the return for the prior year (2022).
They should write the FEMA declaration number – 3595-EM – on any return claiming a loss. More details can be found in Publication 547.
Bottom Line
This tax relief is part of a coordinated federal response to the damage caused by the floods in Vermont, aiming to alleviate the financial strain on those affected as they work towards recovery.
For more information on disaster recovery, visit DisasterAssistance.gov.