In response to the devastating natural disasters that began on August 24, 2023, in several Michigan counties, the IRS has granted tax deadline extensions to provide support and flexibility to individuals and businesses in the affected areas. Eligible taxpayers will have until June 17, 2024, to file various federal individual and business tax returns and make certain payments.
Generally, an affected taxpayer includes:
Individuals whose principal residence is located in a covered disaster area and their spouse, if filing jointly.
Business entities or sole proprietors whose principal place of business is located in a covered disaster area.
Relief workers affiliated with government or philanthropic organizations assisting in a covered disaster area.
Taxpayers not located in a disaster area but whose records that are necessary to meet a deadline to perform certain acts are maintained or located in a covered disaster area.
Any individual visiting a covered disaster area who was killed or injured as a result of the disaster, or any other person determined by the IRS to be affected by a federally declared disaster.
The IRS is granting relief to taxpayers in the following nine counties:
Eaton
Ingham
Ionia
Kent
Livingston
Macomb
Monroe
Oakland
Wayne
Affected taxpayers have until June 17, 2024, to file various federal individual and business tax returns and make payments for:
Individual income tax returns and payments normally due on April 15, 2024.
2023 contributions to IRAs and health savings accounts for eligible taxpayers.
Quarterly estimated income tax payments normally due on Sept. 15, 2023, Jan. 16, 2024, and April 15, 2024.
Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, Jan. 31, 2024, and April 30, 2024.
Calendar-year partnership and S corporations that had a valid tax-year 2022 extension that ran out on Sept. 15, 2023, or have a 2023 return normally due on March 15, 2024.
Calendar-year corporations and fiduciaries that had a valid tax-year 2022 extension that ran out on Oct. 16, 2023, or have a 2023 return and payment normally due on April 15, 2024.
Calendar-year tax-exempt organizations that had a valid tax-year 2022 extension that ran out on Nov. 15, 2023, or have a 2023 return normally due on May 15, 2024.
Individuals and businesses that had an extension to file their 2022 returns will also have until June 17, 2024, to file them.
Note: 2022 tax payments are not eligible for this relief because they were originally due last spring before the disaster occurred.
Generally, the IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to receive relief. taxpayers who live outside the disaster area but qualify for relief can proactively contact the IRS at 866.562.5227. If a taxpayer that qualifies for relief receives a late filing or late payment penalty notice for the postponement period, they should contact the IRS at the number included on the notice to request abatement.
Additionally, penalties for failing to make payroll and excise tax deposits due on or after Aug. 24, 2023, and before Sept. 8, 2023, will be abated as long as the deposits were made by Sept. 8, 2023.
Any affected taxpayer who needs an additional tax filing extension, beyond June 17, for their 2023 federal income tax return are encouraged to request it electronically by April 15, 2024. An affected taxpayer can still request an extension between April 15 and June 17, but that request must be submitted via paper.
Taxpayers that obtain a valid extension, whether requested electronically or by paper, will have until the extended due date of the return to file, but payments are still due on June 17, 2024.
It is crucial for affected taxpayers to review the specific details of the IRS relief measures and consult with your tax advisers to help ensure compliance with the extended deadlines and to explore any tax potentially available benefits, including:
Options for reporting uninsured or unreimbursed disaster losses;
Exclusions available for qualified disaster relief payments received from a government agency for certain expenses incurred by an affected taxpayer; and
Relief benefits that may be available for affected taxpayers that participate in a retirement plan or IRA.
Read more about Michigan relief on the IRS website.
Contact Dan Sexton at dsexton@cohenco.com or a member of your service team to discuss this topic further.
Cohen & Co is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.