IRS Extends Deadlines and Provides Other Tax Relief for Victims of Tennessee Tornadoes
The IRS has announced taxpayers in areas affected by the March 3 tornadoes in middle Tennessee will have until July 15, 2020 to file individual and business tax returns and make tax payments.
The relief will go to areas designated by the Federal Emergency Management Agency (FEMA) as needing assistance. These areas are currently Davidson, Putnam and Wilson counties. Taxpayers in other areas that may be added as eligible for assistance by FEMA will automatically also receive the same relief. Taxpayers do not need to contact the IRS to receive the relief, as it is automatically provided to anyone with an IRS address of record in the area.
Many deadlines starting from March 3, including 2019 individual and business returns typically due April 15 and other types of business returns typically due March 15, are extended to July 15. Also included are tax-exempt organizations that operate by calendar year and typically have a return due May 15, as well as quarterly payroll and excise tax returns normally due April 30.
The relief also applies to those making 2019 IRA contributions and quarterly estimated income tax payments usually due April 15 and June 15. Penalties on payroll and excise tax deposits due March 3-18 will be abated as long as deposits are made by March 18.
The IRS will also provide relief to taxpayers living outside the designated disaster area who have records needed to meet a filing deadline located within the area, including workers affiliated with recognized governmental or philanthropic organizations assisting with disaster relief. Taxpayers qualifying for relief who live outside the disaster area should contact the IRS at 866-562-5227.
Taxpayers who suffered uninsured or unreimbursed losses can claim them on either their 2020 return or 2019 return. They must include the FEMA declaration number, 4476, on any return that claims a loss.
For more information, including the current list of areas eligible for relief, visit the IRS disaster relief page.
Important – if claiming a disaster loss on a 2019 original or amended return, be sure to notate “Tennessee Tornadoes FEMA-4476-DR-TN” at the top of page one of these returns in order to expedite processing!
3/12 UPDATE: Notice #20-01 from the TN Department of Revenue
Consistent with the IRS’s decision to extend federal deadlines for those businesses located in a designated disaster area, the Tennessee Department of Revenue has extended the franchise and excise tax and Hall income tax filing and payment deadlines to July 15, 2020. This extension applies to all taxpayers located in any disaster area designated by the Federal Emergency Management Agency (FEMA). Other tax deadline extensions are available, but they are not automatic. For more information, please see important notice #20-04 .
State law also allows sales tax refunds to individuals receiving disaster assistance through the Federal Emergency Management Agency (FEMA). If you have clients who are individuals receiving FEMA assistance as result of the Middle Tennessee severe storms and tornadoes, they should complete this form to apply for a refund of sales tax paid on major appliances, residential building supplies, or residential furniture.
Resources:
Publication 2194, Disaster Resource Guide for Individuals and Businesses
Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) (This is an awesome resource!!!)
Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook
Publication 547, Casualties, Disasters, and Thefts
Form 4506-T, Request for Transcript of Tax Return
Tax Relief in Disaster Situations (includes many FAQs)
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