There is some confusion regarding the additional extensions granted by the IRS for the victims of hurricanes Harvey and Irma. Let’s sort it out.
- Partnerships and Corporations had a regular extension deadline of September 15. It is now January 31, 2018. If you’re not sure whether your LLC needs a separate tax return (as in Corporation/Partnership) – read our post about the September 15 deadline.
- Individuals had a regular extension deadline of October 15. It is now January 31, 2018. If your LLC is considered a disregarded entity – it will be part of your individual tax return.
- If you did not file an initial extension in the spring (March 15 for business returns and April 15 for individual returns) – then you are already late, and this additional Harvey/Irma extension does not help you!
- If you will owe money to the IRS for 2016, the additional extension does not stop interest and late penalties! This is because the payment was due on April 15, so the interest/penalty clock is already running. If you can – make an estimated payment ASAP, even if your return is not yet ready.
Which territories are covered? (updated as of Oct 27, 2017)
- These counties in Texas: Aransas, Austin, Bastrop, Bee, Bexar, Brazoria, Burleson, Caldwell, Calhoun, Chambers, Colorado, Comal, Dallas, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzalez, Grimes, Guadalupe, Hardin, Harris, Jackson, Jasper, Jefferson, Jim Wells, Karnes, Kleberg, Lavaca, Lee, Liberty, Madison, Matagorda, Milam, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, Sam Augustine, San Jacinto, San Patricio, Tarrant, Travis, Tyler, Victoria, Walker, Waller, Washington and Wharton
- Entire state of Florida
- Entire state of Georgia
- 20 Parishes in Louisiana: Acadia, Allen, Assumption, Beauregard, Calcasieu, Cameron, DeSoto, Iberia, Jefferson Davis, Lafayette, Lafourche, Natchitoches, Plaquemines, Rapides, Red River, Sabine, St. Charles, St. Mary, Vermilion and Vernon
- 16 counties in South Carolina: Allendale, Anderson, Bamberg, Barnwell, Beaufort, Berkeley, Charleston, Colleton, Dorchester, Edgefield, Georgetown, Hampton, Jasper, McCormick, Oconee, and Pickens
- US Virgin Islands and Puerto Rico
Who qualifies as a victim of these hurricanes?
- Anyone who lives in the covered disaster area.
- Any business whose principal place of business is in the covered disaster area. Our interpretation: this should include investors whose properties are located in the affected area.
- Anyone whose records were located in the covered disaster area. All of our clients are covered because of this provision.
- Relief workers affiliated with a recognized government or philanthropic organization.
What do you need to do to receive the relief?
In most cases – nothing, as the IRS will automatically identify affected taxpayers by zip code. If you’re qualified, but the IRS did not recognize you as such, you will need to contact the IRS in response to a proposed penalty notice.