On Oct. 11, 2016, the American Retirement Association requested relief from the IRS for taxpayers, plan sponsors and service providers adversely affected by Hurricane Matthew.
The ARA notes that Matthew caused significant damage throughout the Southeast, resulting in “significant hardships for taxpayers, plan sponsors and their service providers who reside in the affected area.” In the letter, the ARA argues that the IRS should grant the following relief as soon as possible:
Relief for taxpayers who would like to use their retirement assets in qualified retirement plans to alleviate hardships the hurricane caused. It suggests that the IRS pattern this relief on what it announced after Hurricane Sandy in IRS Announcement 2012-44.
Relief related to the deadline for extension to file the Form 5500. The letter points out that “the storm came through at a particularly busy time for plan sponsors and their service providers,” and that this is due to the pending deadline for calendar-year plans that received an extension to file Form 5500 until Oct. 17, 2016. “The IRS, Department of Labor and PBGC should immediately announce relief once again patterned on past announcements such as that provided most recently for Hurricane Hermine or in the past for Hurricane Sandy. It is particularly important that relief extend to taxpayers whose books, records or Form 5500 return preparer are located in areas affected by Hurricane Matthew,” says the ARA.
On Oct. 11, the IRS announced some relief for North Carolina storm victims; however, it concerned issues different than those the ARA raised.
In that announcement, the IRS says that North Carolina storm victims will have until March 15, 2017, to file certain individual and business tax returns and make certain tax payments. It also said that it would issue similar relief for Matthew victims in other states. In addition, the IRS says, all workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief.
The relief the IRS announced includes:
Postponing various tax filing and payment deadlines that occurred starting on Oct. 4, 2016. Affected individuals and businesses will have until March 15, 2017, to file returns and pay any taxes that were originally due during this period. This includes the Jan. 17 deadline for making quarterly estimated tax payments. For individual tax filers, it also includes 2015 income tax returns that received a tax-filing extension until Oct. 17, 2016. The IRS noted, however, that because tax payments related to these 2015 returns were originally due on April 18, 2016, those are not eligible for this relief.
Business tax deadlines. These include the Oct. 31 and Jan. 31 deadlines for quarterly payroll and excise tax returns. The IRS also is waiving late-deposit penalties for federal payroll and excise tax deposits normally due on or after Oct. 4 and before Oct. 19 if the deposits are made by Oct. 19, 2016.
The IRS also reminds that it automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Thus, taxpayers need not contact the IRS to get this relief.
The ARA notes that Matthew caused significant damage throughout the Southeast, resulting in “significant hardships for taxpayers, plan sponsors and their service providers who reside in the affected area.” In the letter, the ARA argues that the IRS should grant the following relief as soon as possible:
Relief for taxpayers who would like to use their retirement assets in qualified retirement plans to alleviate hardships the hurricane caused. It suggests that the IRS pattern this relief on what it announced after Hurricane Sandy in IRS Announcement 2012-44.
Relief related to the deadline for extension to file the Form 5500. The letter points out that “the storm came through at a particularly busy time for plan sponsors and their service providers,” and that this is due to the pending deadline for calendar-year plans that received an extension to file Form 5500 until Oct. 17, 2016. “The IRS, Department of Labor and PBGC should immediately announce relief once again patterned on past announcements such as that provided most recently for Hurricane Hermine or in the past for Hurricane Sandy. It is particularly important that relief extend to taxpayers whose books, records or Form 5500 return preparer are located in areas affected by Hurricane Matthew,” says the ARA.
On Oct. 11, the IRS announced some relief for North Carolina storm victims; however, it concerned issues different than those the ARA raised.
In that announcement, the IRS says that North Carolina storm victims will have until March 15, 2017, to file certain individual and business tax returns and make certain tax payments. It also said that it would issue similar relief for Matthew victims in other states. In addition, the IRS says, all workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief.
The relief the IRS announced includes:
Postponing various tax filing and payment deadlines that occurred starting on Oct. 4, 2016. Affected individuals and businesses will have until March 15, 2017, to file returns and pay any taxes that were originally due during this period. This includes the Jan. 17 deadline for making quarterly estimated tax payments. For individual tax filers, it also includes 2015 income tax returns that received a tax-filing extension until Oct. 17, 2016. The IRS noted, however, that because tax payments related to these 2015 returns were originally due on April 18, 2016, those are not eligible for this relief.
Business tax deadlines. These include the Oct. 31 and Jan. 31 deadlines for quarterly payroll and excise tax returns. The IRS also is waiving late-deposit penalties for federal payroll and excise tax deposits normally due on or after Oct. 4 and before Oct. 19 if the deposits are made by Oct. 19, 2016.
The IRS also reminds that it automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Thus, taxpayers need not contact the IRS to get this relief.
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