On Tuesday, Aug. 29, the Internal Revenue Service (IRS) announced in a press release that Alaskans impacted by the flooding that began on May 12 now have until Oct. 31 to file their individual and business tax returns and make tax payments.
Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households affected by flooding that reside or have a business in the regional educational attendance areas of Bering Strait, Copper River, Kuspuk, Lower Kuskokwim, Lower Yukon, and Yukon Flats qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area.
According to the press release, affected individuals and businesses will have until Oct. 31 to file returns and pay any taxes that were originally due during this period. This includes 2022 individual income tax returns due on Oct. 16. The IRS noted, however, that because the tax payments related to these 2022 returns would have initially been due on April 18, 2023, those payments are not eligible for this relief.
If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing or has a payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice.
The IRS automatically identifies taxpayers located in the covered disaster area and is already applying filing and payment relief. But affected taxpayers who reside or have a business located outside of the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this flood disaster tax relief.
Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.
The IRS may provide additional disaster relief in the future.
Affected taxpayers who are contacted regarding tax collection or examination matters should explain about the disaster so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website, www.irs.gov, or call the IRS disaster hotline at 866-562-5227.
