Executive summary: Florida flooding and postponed tax deadlines
The IRS postponed deadlines to Aug. 15, 2023 for storm victims in Broward County, Florida. The postponement applies to individual returns and business returns originally due April 18, 2023.
IRS postpones tax filing deadline for Florida storm victims
Filing and payment relief for Broward County, Florida.
The IRS issued guidance granting relief to taxpayers affected by severe storms, tornadoes and flooding in Florida that occurred from April 12-14, 2023. Individuals who reside in and businesses with an address in Broward County qualify for relief. Affected individuals and businesses will now have until Aug. 15, 2023, to file returns and make tax payments originally due between April 12, 2023, and Aug. 15, 2023.
The postponed deadline applies to individual returns and business returns originally due April 18, 2023. Taxpayers will get the additional time even if a tax-filing extension was not made by April 18. Affected taxpayers who need additional time to file beyond Aug. 15, 2023, must file an extension request on paper using Form 4868
The Aug. 15 deadline also applies to quarterly estimated tax payments normally due on April 18 and June 15, 2023. These payments are postponed to Aug. 15, 2023 for taxpayers in Broward County, FL. Quarterly payroll and excise tax returns normally due on May 1 and July 31 are also postponed to Aug. 15, 2023. Deadlines for certain information return filings, payroll tax deposits and excise tax deposits are not postponed, but penalties on payroll and excise tax deposits due on or after April 12, and before April 27, 2023, will be abated as long as the tax deposits were made by April 27, 2023. Eligible taxpayers will also have until Aug. 15, 2023, to make 2022 contributions to their IRAs and health savings accounts.
The IRS relief includes other time-sensitive actions described in Reg. section 301.7508A-1(c)(1) and Rev. Proc. 2018-58 such as additional time for filing Form 5500 series returns due on or after the respective disaster start date and before July 31, 2023; and transferors who are not affected taxpayers but who are involved in a section 1031 like-kind exchange pursuant to section 17.02(2) of Rev. Proc. 2018-58.
Disaster-related casualty losses
In addition to extensions of time to file tax returns and complete certain actions, presidential disaster declarations offer taxpayers special options with respect to gain/loss recognition. Taxpayers who experience a casualty loss in a presidentially-declared disaster area may qualify to recognize losses in the year prior to the year the casualty actually occurred under section 165(i). Taxpayers who realize gains by receiving insurance proceeds in excess of basis may be able to defer gain recognition by reinvesting in qualified property under section 1033.
Some of these actions are time sensitive, so taxpayers are encouraged to contact their tax advisor to take advantage of the full range of relief options. Taxpayers that will claim a disaster loss should put “Disaster Designation” in bold letters at the top of their return and include the FEMA disaster declaration number as indicated above on the return. For the April 2023 storms in Florida, the designation is FEMA-4709-DR.
Please see the applicable news release and refer to Publication 547 and Instructions to Form 4684 Casualties and Thefts for instructions.
Automatic penalty relief
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer or their representative should contact the IRS to have the penalty abated.
Relief for those impacted outside the disaster area
The IRS will also work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
