Whether you’re a recent transplant or a long-time Florida resident, a hurricane is a big deal. There’s a lot going on in the aftermath, and you may not be able to count on reliable electric power or navigable roadways in your area. The last thing you want to worry about right now is your taxes.
The federal government agrees. Hurricane Ian has officially been declared a major disaster, a ruling that carries big time tax implications from deadlines to penalties.
Contents |
| Am I affected by this ruling? |
| Extended deadlines |
| Other tax relief |
| How much will this delay my tax returns? |
| Do penalties and interest keep accruing? |
The disaster area covered by the major disaster declaration is pretty simple: it’s the entire state of Florida, whether you were hit directly or you barely noticed. And it doesn’t just cover Florida residents. Florida businesses are included too. You qualify if:
If any of the above describes you or your business, you (and your tax returns) are officially recognized as having been affected by a major disaster.
And if you’re a current DiMercurio Advisors client, that means you!
If you’re affected by Hurricane Ian (as discussed above), and you’ve got a tax deadline between September 23rd, 2022 and February 15th, 2023, that deadline has now been pushed back to February 15th, 2023. This includes businesses filing with Form 1120 (not 1120-S or 1065, sorry!), trusts filing with Form 1041, and individuals filing with Form 1040. And if you’ve got an extension set to run out between those two dates, you’re covered too.
The extended deadlines aren’t the only disaster-related help taxpayers will be receiving. Any personal property damages caused by the hurricane (that aren’t already covered under insurance) can be written off as casualty losses on your tax returns. You also won’t have to pay the usual fees for requesting copies of previous tax returns.
If you’re working with DiMercurio Advisors on your tax returns, you might be wondering if it’ll be months before those are successfully filed. That probably won’t be the case. For most clients, we’re not anticipating delays of any more than a few weeks.
However, that depends! For instance, if you’re a client and you’ve been impacted by the major disaster, you might be unable to provide us with key information we need to complete your returns on time. Not to worry, that’s what the tax extensions are for.
That also depends.
Penalties on payroll and excise tax deposits due on or after September 23rd, 2022 and before October 10th, 2022 will be abated as long as the tax deposits are made by October 10th, 2022. Any payments made within the extension are treated as if they were made on the due date.
For most other taxes, penalties and interest will continue to accrue from the tax return due date (April 15th for individuals) until the tax is actually paid.
And for any type of taxes, you’re still on the hook for any penalties and interest accrued before the extension.
Tax returns and hurricanes can both be complicated to navigate, and the combination of the two might be overwhelming to think about.
If you’re already working with DiMercurio Advisors and you have questions about your tax returns, reach out to your tax lead on our team and we’ll be more than happy to help.
If you’re not a client, but also you have questions about how the hurricane will impact your taxes, schedule a call with a member of our team below!