Victims of recent severe storms and flooding in Colorado have one less thing to worry about: their taxes.
The Internal Revenue Service (IRS) announced yesterday that businesses and individuals residing in the federally declared disaster areas — Adams, Boulder, Larimer and Weld counties — may qualify for tax relief.
The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Sept. 11, and on or before Dec. 2, 2013, have been postponed to Dec. 2, 2013. This includes the quarterly estimated tax payment due on Sept. 16. It also includes the due date of Sept. 16 for calendar year corporations and partnerships that received extensions of time to file.
The IRS is also waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Sept. 11, and on or before Sept. 26, as long as the deposits are made by Sept. 26, 2013.
Taxpayers living in the above mentioned counties will automatically qualify for the extensions and waived penalties. Those living outside the areas but still affected by the storms should contact the IRS disaster hotline at 866-562-5227 to request this relief.
The IRS may not be your best friend, but it isn’t a four letter word either. As part of its Tax Relief in Disaster Situations program, the IRS provided tax relief to parts of over 15 states in the last year alone.
If you’d like to contribute to the victims of the Colorado disaster that has left at least 1500 homeless and 8 dead, keep a receipt of your donation so that you can file it as an itemized deduction on next years tax return.
JDKatz, P.C. is a full-service law firm focused on tax law, business and transactional law, estate planning and elder law. We are dedicated to minimizing your existing liability and risks while providing valuable tax planning to streamline your tax issues in the future. Please call us at 301-913-2948 to schedule an appointment to meet with one of our trusted attorneys, or visit http://www.taxattorneymd.com.