Small Business Taxes & ManagementTM--Copyright 2017, A/N Group, Inc.
Victims of the Severe Storms, Tornadoes, Straight-line Winds, and Flooding that took place beginning on April 26, 2017 in parts of Arkansas may qualify for tax relief from the IRS.
The President has declared that a major disaster exists in the State of Arkansas. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in Arkansas will receive tax relief.
Individuals who reside or have a business in Benton, Boone, Carroll, Clay, Faulkner, Fulton, Jackson, Lawrence, Pulaski, Randolph, Saline, Washington, and Yell Counties may qualify for tax relief.
The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after April 26, 2017, and before Aug. 31, 2017, are granted additional time to file through Aug. 31, 2017. This includes the estimated tax payment due on June 15, 2017 and the quarterly payroll tax returns due on May 1, 2017 and July 31, 2017. Affected taxpayers that have an estimated income tax payment originally due on or after April 26, 2017, and before Aug. 31, 2017, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before Aug. 31, 2017.
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 that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty. The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.
Under section 7508A, the IRS gives affected taxpayers until Aug. 31, 2017, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after April 26, 2017, and before Aug. 31, 2017. Affected taxpayers that have an estimated income tax payment originally due on or after April 26, 2017, and before Aug. 31, 2017, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before Aug. 31, 2017 The IRS also gives affected taxpayers until Aug. 31, 2017 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after April 26, 2017, and before Aug. 31, 2017.
This relief also includes the filing of Form 5500 series returns, (that were required to be filed on or after April 26, 2017, and before, Aug. 31, 2017 in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.
Unless an act is specifically listed in Rev. Proc. 2007-56, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098, or 1099 series; to Forms 1042-S, 3921, 3922, 8025, or 8027; or to employment and excise tax deposits. However, penalties on deposits due on or after April 26, 2017, and before May 11, 2017, will be abated as long as the tax deposits were made by May 11, 2017.
For additional information, go to Tax Relief for Victims of Severe Storms, Tornadoes, Straight-line Winds and Flooding in Arkansas.
Copyright 2017 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536
--Last Update 06/21/17