Following the destructive tornadoes and storms that hit Mississippi in March, the IRS declared an extended deadline for the affected individuals and businesses. Those suffering from the storms’ impact will now have until July 31, 2023, to submit various federal individual and business tax returns and make tax payments. This article outlines the eligibility criteria for tax relief, the taxes and returns affected, and the process for seeking assistance.
Eligibility for Mississippi Storm Tax Relief
Mississippi storm tax relief is extended to any region designated by the Federal Emergency Management Agency (FEMA). This is due to the tornadoes and severe storms that occurred on March 24 and 25. As of now, individuals and households living or operating a business in Carroll, Humphreys, Monroe, and Sharkey counties are eligible for tax relief. Should more areas be included in the disaster area list, they will also qualify for the same relief. The latest list of eligible localities can be accessed on the Tax Relief in Disaster Situations page.
Mississippi Storm Tax Relief Details
Since the Mississippi storm tax relief actively postpones several tax filing and payment deadlines beginning on March 24, 2023. As a result, affected individuals and businesses now have until July 31, 2023, to file returns and pay any taxes initially due during this period.
Applicable Taxes and Returns
The extended deadline applies to several tax categories, including:
- 2022 individual income tax returns and business returns due on April 18.
- 2022 contributions to IRAs and health savings accounts.
- Quarterly estimated tax payments due on April 18 and June 15.
- Quarterly payroll and excise tax returns due on April 30, 2023.
Tax Penalty Relief and Extensions
The IRS will waive penalties on payroll and excise tax deposits due between March 24 and April 10, as long as taxpayers make the tax deposits by April 10, 2023. If affected taxpayers need time beyond July 31st, the IRS recommends requesting additional time electronically before the original April 18 deadline. Visit IRS.gov/extensions for more information. From April 18 to July 31, disaster area taxpayers must submit their extension requests in paper format only.
Help for Taxpayers Outside the Disaster Area
The IRS automatically grants filing and penalty relief to taxpayers with an IRS address of record in the disaster area. If an affected taxpayer receives a late filing or late payment penalty notice with a due date within the postponement period, they should call the number on the notice to abate the penalty. The IRS will also assist taxpayers living outside the disaster area with records in the affected area needed to meet a deadline during the postponement period. Taxpayers eligible for relief who live outside the disaster area should call the IRS at 866-562-5227. This number also serves workers helping with relief activities associated with a recognized government or philanthropic organization.
Claiming Disaster-Related Losses in Mississippi
Individuals and businesses in a federally declared disaster area with uninsured or unreimbursed disaster-related losses have the option to claim them on either the return for the year the loss occurred (the 2023 return, usually filed in early 2024) or the return for the prior year (the 2022 return, typically filed in 2023). Remember to write the FEMA declaration number – 4697-DR – on any return when claiming a loss. Consult IRS Publication 547 for more information on claiming disaster-related losses.
Need Help?
Affected individuals and businesses should take advantage of the extended tax filing deadline and any applicable relief options to alleviate some of the financial burden caused by these natural disasters. For more information on disaster recovery, visit DisasterAssistance.gov.
If you need help obtaining tax relief, GreenGrowth CPAs can help! We have several financial programs to assist companies with their fiscal responsibilities, including tax planning and compliance, accounting & finance support, audit preparation, tax controversy support, and much more.
