As you may have heard, the IRS has issued tax relief for victims of Hurricanes Harvey and Irma by extending the filing deadline for many tax returns with filing deadlines from August 23, 2017, through January 31, 2018. Impacted taxpayers with valid extended individual income tax returns due October 15, 2017, will now have until January 31, 2018, to file their tax returns. Additionally, affected business with extended income tax returns due September 15, 2017, or October 15, 2017, are also granted additional time to file their returns by January 31, 2018.
Summary of Tax Relief:
Note: Taxpayers with addresses on record with the IRS in the Presidential Disaster Areas will automatically receive relief. Relief is also available for those with records in those areas that are needed to complete their filing obligations. (See links for a list of areas covered.)
- Extended filing/payment deadlines:
- Individuals with a valid extension in place have until January 31, 2018, to file their 2016 personal income tax returns. (no relief for late payment of tax due on 4/15/17)
- Individuals have until January 31, 2018, to make both their 3rd quarter and 4th quarter 2017 estimated tax payments.
- Businesses with a valid extension in place have until January 31, 2018, to file their income tax returns. (no relief for late payment of tax due 3/15/17 or 4/15/17)
- Business deadlines for quarterly payroll and excise tax returns due October 31, 2017, have been extended.
- Allowing loans and hardship distributions from employer sponsored retirement plans
- Employee benefit plan deadline extensions
- Reminder about casualty losses and the opportunity to offset 2016 income with these losses
Our thoughts and prayers go out to all those affected by these storms.
MICHAEL CIRANGLE, CPA, is a Principal in the Tax Department at Ellin & Tucker in Baltimore, MD. Michael’s extensive expertise enables him to provide the highest level of practical and technical tax compliance and consultation to privately owned companies with operations in investment partnerships, manufacturing, wholesale distribution, professional service, real estate, and technology industries. Mike is also well versed in tax-efficient investment strategies and financial tools designed to meet the needs of high net-worth individuals. He can be reached at email@example.com.