Disaster Relief: IRS Extends Tax Deadline for Tornado Victims

Relief postpones the filing and payment deadlines until October 15, 2020 for various returns and payments for those in areas impacted by severe storms and tornadoes.

As a result of the severe storms, tornadoes, and flooding that impacted Bradley and Hamilton counties in April, a major disaster declaration was made official on April 24, 2020 and the Federal Emergency Management Agency (FEMA) designated Bradley and Hamilton counties in Tennessee as eligible for individual assistance. On Tuesday, June 23, 2020, the IRS issued a news release offering relief to any areas designated by FEMA for individual assistance, which includes Bradley and Hamilton counties.

The relief postpones the filing and payment deadlines until October 15, 2020 for various returns and payments that would be due on or after April 12, 2020. Taxpayers whose principal residence or principal place of business is located in one of the designated areas are eligible for the relief.

For individuals residing in either Bradley or Hamilton county and business taxpayers with a principal place of business in either county, the relief postpones, among other things, the deadline for filing the 2019 tax returns (Form 1040 or Form 1120) and making any payments due with such returns. Additionally, first, second and third quarter estimated taxes (Form 1040-ES or Form 1120-W) are postponed as well as the deadline for individuals to make IRA contributions for 2019.

The relief does not appear to extend to any taxpayers other than individuals and businesses. Thus, for example, the deadline for filing a calendar year 2019 Form 1041 for an estate or a trust would appear to still be July 15, 2020.

No extension will need to be filed to take advantage of the postponed deadlines so any returns and payments that were previously postponed until July 15, 2020 due to COVID-19 will automatically be postponed to October 15, 2020 for affected taxpayers.

Tennessee may provide similar relief but, until such relief is authorized, taxpayers should continue to assume that any Tennessee tax filings and payments will still be due on July 15, 2020. Also, affected taxpayers relying on the postponed federal deadline who file in states other than Tennessee will need to extend these state returns and pay any balance due by the current state-mandated deadline.

Please reach out to an HHM CPAs professional if you have any questions.