Tax deadlines prolonged for Tennessee flood victims

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Residents of certain Tennessee counties can wait until January 3, 2022 to file and pay certain federal taxes. The IRS extended various tax deadlines due to the severe storms and floods on August 21, 2021 in parts of the state declared a disaster area by the Federal Emergency Management Agency (FEMA). The tax break applies to Dickson, Hickman, Houston and Humphreys counties who were affected by the storms and floods.

Various due dates for federal tax returns and payments for individuals and companies from August 21 to January 2 will be postponed to January 3 (May 17, 2021).

Tennessee storm and flood victims will also have more time to make the estimated quarterly tax payments due on September 15, 2021.

The wage and excise tax payments due from August 21 to September 6 are also omitted if the payments are made by September 7, 2021.

You don't have to go to the IRS to get this relief. However, if you receive a late filing or late payment notice from the IRS whose original or extended filing, payment or deposit due date falls within the grace period, you should call the number on the notice to waive the penalty.

The IRS also waives fees for obtaining copies of previously filed tax returns for taxpayers affected by storms and floods. To request copies of a tax return or tax return log, write "Tennessee – Severe Storms and Floding" in bold at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and submit to the IRS.

In addition, the IRS will work with any taxpayer who lives outside of Tennessee but whose records are in the state for a deadline required during the grace period. Taxpayers eligible for an exemption and residing in another state must contact the IRS at 866-562-5227. This also includes auxiliaries who are affiliated with a recognized government or philanthropic organization.

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Individuals and companies in a federally declared disaster area who have suffered uninsured or non-reimbursed disaster-related damage can either refer to the declaration for the year in which the damage occurred (in this case the declaration for 2021, which is normally submitted in the next year) or assert the declaration for the previous year. This means that taxpayers can claim these losses on their 2020 tax returns. Be sure to write the FEMA Declaration Number (FEMA 4609-DR) on any return claiming a loss. It is also a good idea for affected taxpayers claiming disaster damage on a 2020 statement to put the disaster name ("Tennessee – Severe Storms and Flooding") in bold at the top of the form. See IRS Publication 547 for more information.