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IRS Grants Relief to Alabama Storm Victims

Government Affairs

The IRS announced on March 7 that victims of the severe storms, tornadoes and straight-line winds that took place on March 3, 2019 in Alabama may qualify for some forms of tax relief.

Where and to Whom it Applies

The relief applies to:

  • individuals who reside or have a business in Lee County, and businesses in Lee County, may qualify for tax relief; and
  • taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) — which includes employment taxes and contributions to qualified retirement plans — are in the covered disaster area.

Also, the IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief, but taxpayers who reside or have a business located outside Lee County also may be affected. They must call the IRS disaster hotline, 866-562-5227, to request this tax relief.

The Relief

The IRS has extended certain deadlines falling on or after March 3, 2019 and before July 31, 2019; those with such deadlines now can file through July 31, 2019. This includes quarterly estimated income tax payments due on April 15, 2019 and June 17, 2019, as well as 2018 IRA contributions, which eligible taxpayers now have until July 31, 2019 to make.

Penalties

The IRS says that penalties on payroll and excise tax deposits due on or after March 3, 2019, and before March 18, 2019, will be abated as long as the deposits are made by March 18, 2019.

Taxpayers that receive a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.