On May 16, 2024, the Internal Revenue Service (“IRS”) announced tax relief for individuals and businesses that were affected by the Ohio tornadoes that began on March 14, 2024. Affected taxpayers now have until September 3, 2024 to make tax payments and file federal individual and business tax returns.
Who is eligible for the relief?
The relief currently applies to individuals and businesses in the following counties:
- Auglaize
- Crawford
- Darke
- Delaware
- Hancock
- Licking
- Logan
- Mercer
- Miami
- Richland
- Union
The Federal Emergency Management Agency (“FEMA”) may subsequently add additional counties to the list. An up-to-date listing of all eligible locations can be found on the Tax relief in disaster situations page of the IRS website.
The IRS will automatically provide the relief to individuals and businesses if the address on record is within the disaster area. There is no need to contact the IRS to be eligible for the relief.
What are the types of relief available?
The tax relief delays tax filing and payment deadlines that occur during the postponement period between March 14, 2024 and September 3, 2024. As a result, affected individuals and businesses will have until September 3, 2024 to file returns and pay any taxes that were originally due during the postponement period.
The IRS gives the following examples of the types of returns and payments that can be postponed until September 3, 2024; however, this is not an exhaustive list of all returns and payments to which the relief applies:
- 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 April 15 and June 17, 2024.
- Quarterly payroll and excise tax returns normally due on April 30, 2024 and July 31, 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.
Additionally, penalties for failing to make payroll and excise tax deposits due on or after March 14, 2024 and before March 29, 2024 will be abated if the deposits were made by March 29, 2024.
Details on other types of returns, payments and actions that qualify for relief during the postponement period can be found on the Disaster assistance and emergency relief for individuals and businesses page of the IRS website. The IRS may also provide additional disaster relief in the future.
Are there any other considerations?
Some taxpayers who live outside of the disaster area may also qualify for relief if they have records located in the affected area that are necessary to meet a deadline during the postponement period.
Individuals who need a filing extension beyond the postponement period can get it by filing a paper Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, with the IRS. This will extend the individual income tax return until October 15, 2024; however, payments will still be due on September 3, 2024.
How can Schneider Downs help?
The team at Schneider Downs can help clients determine if they qualify for relief, and which payments and tax returns can be delayed during the postponement period. We can also help if late payment or late filing penalties are erroneously assessed.
Additionally, affected taxpayers within the disaster area who suffered uninsured or unreimbursed disaster-related losses, received qualified disaster relief payments, or participate in a retirement plan or individual retirement arrangement (“IRA”) should discuss the appropriate tax treatment of these items with their Schneider Downs contact(s).
About Schneider Downs Tax Services
Schneider Downs’ tax advisors have experience and expertise in a wide range of industries, including Automotive, Construction, Real Estate, Manufacturing, Energy & Resources, Higher Education, Not-for-profits, Transportation and others. Our industry knowledge and focus ensure the delivery of technical tax strategies that can be implemented as practical business initiatives.
To learn more, visit our dedicated Tax Services page.
