Victims of this spring's storms and tornadoes in Tennessee have until August 2, 2021 to file and file various tax returns for individuals and businesses, the Internal Revenue Service said.
According to the latest Federal Emergency Management Agency (FEMA) disaster declaration, the IRS is offering this relief to taxpayers affected by storms, tornadoes, and floods that hit parts of Tennessee between March 25 and April 3, 2021. Currently, affected taxpayers who live or have a business in Campbell, Cannon, Cheatham, Claiborne, Clay, Davidson, Decatur, Fentress, Grainger, Hardeman, Henderson, Hickman, Jackson, Madison, Maury, McNairy, Moore and Overton are exonerated, Scott, Smith, Wayne, Williamson and Wilson counties. The current list of eligible locations is always available on the Disaster Relief page on IRS.gov.
The tax relief postpones various tax filing and payment deadlines that began on March 25th. As a result, affected individuals and businesses have until August 2nd to file tax returns and pay any taxes originally due during that period. This includes the 2020 individual income tax returns due on May 17th, as well as various 2020 corporate returns that are normally due on April 15th. This means, among other things, that affected taxpayers have until August 2 to make IRA contributions for 2020.
The August 2 deadline also applies to quarterly estimated income tax payments due April 15 and June 15, as well as the quarterly wage and excise tax returns, which are normally due April 30. It also applies to tax-exempt organizations operating on a calendar year basis that have a 2020 return due on May 17th.
In addition, penalties for wage and excise tax deposits due on or after March 25 and before April 9 will be reduced as long as the deposits are made by April 9.
Please refer to the IRS Disaster Relief page for details on other returns, payments, and tax measures that may be eligible for the additional time.
The IRS automatically offers filing and penalty relief to any taxpayer with an IRS address located in the disaster area. Hence, taxpayers do not need to turn to the agency for this relief. However, if an affected taxpayer receives a late filing or late payment notification from the IRS whose original or extended filing, payment or deposit date is within the deferred period, the taxpayer should call the number on the notice to receive the fine abated.
In addition, the IRS will work with any taxpayer living outside the disaster area whose records required to meet a deadline during the grace period are in the affected area. Taxpayers who qualify for relief and live outside the disaster area must contact the IRS at 866-562-5227. This also includes workers who support the relief effort and who belong to a recognized government or philanthropic organization.
Individuals and companies in a disaster area declared by the federal government who have suffered uninsured or non-reimbursed catastrophe-related losses can either claim them for the return for the year in which the damage occurred (in this case the return normally submitted in the next year in 2021) or claim for the return for the previous year. This means that taxpayers can claim these losses at their own discretion on the 2020 tax return they fill out this tax season. Be sure to write the FEMA Declaration Number 4601DR on any return that has a claim for loss. See publication 547 for details.
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, see Disasterassistance.gov.
In addition to Tennessee, taxpayers in some or all five other states have more time to file and pay:
- Individuals and businesses in Texas, Oklahoma, and Louisiana have until June 15 to submit and pay. All taxpayers in these three states are entitled to relief.
- Individuals and businesses in parts of Kentucky have until June 30th to submit and pay.
- Individuals and businesses in parts of Alabama have until August 2nd to submit and pay.
Individuals in the disaster area who need more time to submit beyond these postponed deadlines can get them by submitting an auto-renewal request. This extends the filing period to October 15, 2021. The IRS emphasized that this additional extension does not constitute an extension of the payment period.
An easy way to get the extra time is to use the free file on IRS.gov. Within minutes, anyone, regardless of income, can use this free service to electronically apply for an extension on Form 4868. To obtain the extension, taxpayers must estimate their tax liability on this form.
Another option is to pay electronically and get an extension of your tax return. The IRS will automatically process a renewal if a taxpayer selects Form 4868 and makes a full or partial federal tax payment by the May 17 due date using Direct Pay, the federal tax payments system's electronic EFTPS, or a debit or credit card. Note that registration is required before using EFTPS. For more information on these electronic payment options, please visit IRS.gov/Payments.
The IRS emphasized that May 17th will be the last day an extension will be requested using any of these electronic options. After May 17, taxpayers in the disaster area who need more time to file must submit this application on paper. To do this, file Form 4868, which is available on IRS.gov. For more information on extensions, see IRS.gov/Extension.