The Internal Revenue Service (IRS) issued guidance granting relief to those taxpayers affected by the Tennessee storms, straight-line winds, tornadoes and flooding. Taxpayers will have until Aug. 2, 2021, to file various individual and business tax returns and to make tax payments.
The current qualifying areas include: Campbell, Cannon, Cheatham, Claiborne, Clay, Davidson, Decatur, Fentress, Grainger, Hardeman, Henderson, Hickman, Jackson, Madison, Maury, McNairy, Moore, Overton, Scott, Smith, Wayne, Williamson and Wilson counties. The IRS granted this postponement of certain deadlines under its section 7508A authority for those individuals and businesses located in areas affected by a federally declared disaster. The current list of eligible localities is available and updated on the IRS disaster relief page.
The IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located 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.
The tax relief postpones various tax filing and payment deadlines that occurred starting on or after, March 25, 2021 and before Aug. 2, 2021. Affected individuals and businesses will have until Aug. 2, 2021, to file returns and pay any taxes that were originally due during this period. This includes the May 17 deadline for filing 2020 individual income tax returns and paying any tax due. Taxpayers also have until Aug. 2 to make 2020 IRA contributions.
The Aug. 2 deadline applies to the first quarter estimated income tax payment due on April 15, and the second quarter estimated income tax payment normally due on June 15. It also applies to the quarterly payroll and excise tax returns normally due on April 30, 2021. In addition, it applies to tax-exempt organizations, operating on a calendar-year basis, that have a 2020 return due on May 17, 2021. Also, penalties on deposits due on or after March 25, 2021, and before April 9, 2021, will be abated as long as the tax deposits were made by April 9, 2021.
The IRS disaster relief page contains further details on other returns, payments and tax-related actions qualifying for the additional time.