The Internal Revenue Service (IRS) provides tax-cum-tariff disaster relief to legal business practitioners and conditional tax-paying individuals against natural and financial disasters in the form of quarterly payrolls, waivers, or excise fees for the affected taxpayers.

As per the tax and revenue structure of the United States of America the Internal Revenue Service has the authority to provide tax refunds, relief, and excise payments to the tax-paying bodies that reside or perform business within the state and hold an eligible record for redeemable tax reliefs and extensive dates of filing of taxes and have been badly affected by a natural disaster.

The Disaster Code includes any natural disaster determined by the president of the United States to warrant state-level assistance. Some of the archived tax relief programs sponsored by the IRS are mentioned below:

Tax relief for the island of St. Croix

Recently, the IRS, under the supervision of the Federal Emergency Management Agency announced that it is offering tax reliefs to the citizens of St. Croix & entrepreneurs thereof that have been affected by water shortage and lack of health facilities or have fallen short in quarterly payroll and excise tax returns. The IRS extended the deadline for filing of tax.

All relief workers whether or not in the vicinity of the disaster area, affiliated with local government/philanthropic organization (e.g; UN/Obama-care) helping in the relief activities in the office, cited area, and any individual visiting the covered disaster area who was killed or petrified as a result of the disaster are entitled to relief.

The declaration allows the Revenue Service to delay certain tax-filing and tax-payment deadlines for taxpayers who lodge in or have a business in St. Croix. E.g, certain deadlines falling on or after July 15, 2022, and before November 15, 2022, are postponed till November 15, 2022.

As a result, taxpayers and business owners who previously had a deadline of October 17, 2022 to file their 2021 tax returns will now have until November 15, 2022 to do so.

Kentucky Storm Flooded victims eligible for tax relief

The IRS, under the designation of Federal Emergency Management Agency, announced on August 2, 2022 that the storm-flooded, landslide and also mudslide victims (citizens and business practitioners) of Kentucky state are eligible for tax relief & extension of tax filing date until November 15, FY’22.

This includes affected citizens and entrepreneurs residing or performing business(s) in Breathitt, Clay, Floyd, Johnson, Knott, Leslie, Letcher, Magoffin, Martin, Owsley, Perry, Pike and Wolfe counties in Kentucky, USA.

The November 15, 2022 deadline also applies to quarterly estimated income-tax payments due on September 15, 2022, as well as the quarterly payroll and excise tax payments/returns normally due on August 1 and October 31, 2022.

Read more: Avoid These 5 Costly Tax Mistakes

Tax Relief for Oklahoma severe storms, tornadoes, and flooding victims

The state-run Revenue Service announced today that the Oklahoman victims of May 2022 storms, floods, and natural disasters that reside or have a business in Adair, Cherokee, Muskogee, Okmulgee, Pottawatomie, Seminole, and Tulsa counties are now eligible for tax returns and relief payments.

The IRS automatically recognizes taxpayers residing in the covered disaster area and applies for tax filing & payment relief.
However, affected taxpayers who reside or have a non-defaulter business record located outside the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request tax relief.

This includes the quarterly estimated tax payment, payroll, and even excise tax returns, normally due on August 1 and June 15 respectively. “Penalties on income payroll, subsidiaries and excise tax deposits due on or after May 2, 2022, and before May 17, 2022, will be subsidized as long as the tax deposits were made by May 17, 2022.

However, taxpayers who get notices from the IRS about penalties for late filing or payment and whose original or extended due date for those actions falls within the delayed period should call that notice’s toll-free number to request a reduction in the penalty.

Besides financial timely reliefs and refunds. The Internal Revenue Service also provides audio & PowerPoint presentations on Planning for Disaster (IRS). These presentations discuss SMEs, MSMEs and IDEs continuity planning, insurance/BEMA coverage, record keeping and other tips to stay in business after a major disaster.

Read more: Benefits of Tax-Free Investments

All things considered, the Internal Revenue System, under the designation of FEMA and the President of the United States can roll out tax relief programs for victims of pandemic and/or natural disaster, under suitable measures, whenever necessary.

Five Tax is an accounting firm based in Baltimore that can help businesses and individuals hit with disaster get IRS disaster relief programs.