Tax relief for Alaska storm victims
Ines Zemelman, EA
02 Apr 2024
The IRS has announced significant tax relief for individuals and businesses in the Wrangell Cooperative Association of Alaska Tribal Nation impacted by devastating storms, landslides, and mudslides since November 20, 2023.
This initiative aims to alleviate the financial strain on affected taxpayers by extending various tax deadlines to July 15, 2024.
Key details of the tax relief: eligibility criteria
1. Affected areas
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Primary qualification: Individuals and businesses located within the boundaries of the Wrangell Cooperative Association of Alaska Tribal Nation.
This area has been officially designated as a disaster area by the Federal Emergency Management Agency (FEMA), following severe storms, landslides, and mudslides that began on November 20, 2023. - Residency and business operations: The relief specifically targets taxpayers who reside or have their principal place of business in the affected area. This ensures that those directly impacted by the disasters are provided with necessary tax relief and support.
2. Affected taxpayers
- Individuals: Residents of the disaster area, including those who were temporarily away during the disaster but whose primary home is located within the affected area.
- Businesses: All sizes and types of businesses located in the disaster area, including sole proprietorships, partnerships, corporations, and other non-corporate entities. This also encompasses tax-exempt organizations whose primary operations are within the disaster zone.
- Tax-exempt organizations: Charities, non-profits, and other organizations that hold tax-exempt status and are situated in the disaster area. These entities are also eligible for extended deadlines to file returns and make payments.
- Relief workers: Individuals affiliated with recognized government or philanthropic organizations assisting in the relief activities within the disaster area. This includes volunteers and employees of these organizations who are working on relief efforts.
- Casualty and disaster victims: Any individual visiting the disaster area who was killed or injured as a result of the disaster is entitled to relief. This provision ensures that those affected by the disaster, in any capacity, receive the support they need.
3. Extended deadlines and applicable taxes
- Individual income tax returns: The new deadline for filing and payment is July 15, 2024, for taxes normally due on April 15, 2024.
- Quarterly estimated tax payments: Payments due on January 16, April 15, and June 17, 2024, are now extended to July 15, 2024.
- Business tax returns: Includes quarterly payroll and excise tax returns, partnership and S corporation returns, and calendar-year corporation, fiduciary, and tax-exempt organization returns.
Additional information
- Requesting further extensions: Taxpayers needing more time beyond July 15, 2024, for their 2023 federal income tax return must request an extension by April 15, 2024.
- Penalty abatement: Penalties for late payroll and excise tax deposits will be waived if deposits are made by December 5, 2023.
How to apply for relief
- Automatic identification: The IRS will automatically identify taxpayers in the disaster area and apply the relief.
- Outside the disaster area: Taxpayers located outside the covered disaster area but affected by the disaster should contact the IRS disaster hotline at 866-562-5227.
Additional benefits
- Casualty losses: Taxpayers can claim disaster-related casualty losses on their federal income tax return for either the year the event occurred or the prior year.
- Fee waivers: The IRS is waiving fees for copies of previously filed tax returns for affected taxpayers.
- Qualified disaster relief payments: Amounts received for reasonable and necessary expenses, or for home repair or rehabilitation, are excluded from gross income.
Conclusion
The IRS's tax relief measures provide a much-needed respite for those affected by the severe weather events in Alaska.
By extending deadlines and offering additional support, the IRS helps alleviate the financial burdens faced by individuals and businesses during this challenging time.
Ines Zemelman, EA
Founder of TFX