IRS offers tax relief for Maine and Rhode Island taxpayers affected by severe storms and flooding
The IRS has announced tax relief for taxpayers in Maine and Rhode Island who were affected by severe storms and flooding.
The relief includes extending various tax deadlines to July 15, 2024.
Also read – Expat tax due dates and deadlines
General tax relief details
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Maine tax relief: Taxpayers in Maine affected by severe storms and flooding that occurred on October 30, 2023, now have until July 15, 2024, to file various individual and business tax returns.
This includes quarterly estimated income tax payments originally due on January 15, 2024, and the quarterly payroll and excise tax returns normally due on January 31, 2024. -
Rhode Island tax relief: Rhode Island taxpayers affected by severe storms and flooding on October 30, 2023, also have until July 15, 2024, to file various individual and business tax returns.
This includes quarterly estimated income tax payments originally due on January 15, 2024, and the quarterly payroll and excise tax returns normally due on January 31, 2024.
Filing and payment relief
The tax relief postpones various tax filing and payment deadlines that occurred from January 9, 2024, through July 15, 2024 (postponement period).
Affected individuals and businesses will have until July 15, 2024, to file returns and pay any taxes that were originally due during this period.
This means, for example, that the July 15, 2024, deadline will now apply to:
- Individual income tax returns and payments normally due on April 15, 2024.
- 2023 contributions to IRAs and health savings accounts for eligible taxpayers.
- Quarterly estimated income tax payments normally due on January 16, April 15, and June 17, 2024.
- Quarterly payroll and excise tax returns normally due on January 31 and April 30, 2024.
- Calendar-year partnership and S corporation returns normally due on March 15, 2024.
- Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2024.
- Calendar-year tax-exempt organization returns normally due on May 15, 2024.
Penalties for failing to make payroll and excise tax deposits due on or after January 9, 2024, and before January 24, 2024, will be abated as long as the deposits were made by January 24, 2024.
Additional tax relief
1. Uninsured or unreimbursed disaster-related losses
Individuals and businesses in a 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 2024 return normally filed next year), or the return for the prior year (2023).
Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election.
2. Qualified disaster relief payments
Qualified disaster relief payments are generally excluded from gross income.
Affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living, or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents.
3. Retirement plan or IRA relief
Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA).
For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpay er to spread the income over three years.
Taxpayers may also be eligible to make a hardship withdrawal.
The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit DisasterAssistance.gov.
How to claim relief
Affected taxpayers in both states should write "Maine Storms – 10/30/2023" or "Rhode Island Storms – 10/30/2023," respectively, in red ink at the top of their tax forms to indicate they are claiming the special tax relief.
They should also attach a statement to their tax return explaining how they were affected by the storms and flooding.
Additional assistance
The IRS is offering assistance to affected taxpayers through its disaster assistance hotline at 866-562-5227. Taxpayers can also visit the IRS website for more information and resources.
Importance of filing
Taxpayers should still try to file their taxes as soon as possible, even with the extended deadline, to avoid penalties and interest charges.
Those who are unable to file by the new deadline should consider filing for an extension.
Bottom line
The IRS encourages affected taxpayers in Maine and Rhode Island to take advantage of these relief measures and to reach out for assistance if needed.
The agency is committed to helping taxpayers recover from the effects of the severe storms and flooding.