Taxpayers affected by last week’s winter storm are provided relief
IRS announced an extension for the returns due on March 15, 2018
TAX ALERT |
On March 13, 2018, the IRS announced a five day extension of time to business taxpayers who are unable to file their tax returns by Thursday, March 15, 2018. This extension is provided to victims and tax professionals who were affected by the recent winter storms Skylar and Quinn that hit portions of the Northeast and Mid-Atlantic.
Business taxpayers and tax professionals who were affected by the winter storm can file an automatic extension, Form 7004, by March 20, 2018. The filing of the Form will provide a six month extension to file the tax returns for partnerships and S corporations. Please note that this announcement does not cover calendar year C corporations, because the due date for C corporations’ returns is April 15, 2018.
The IRS instructs eligible taxpayers to state on top of the Form 7004, “Winter Storm Quinn” or “Winter Storm Skylar,” if such form is paper filed.
Interestingly, the IRS did not determine which areas in Northeast and Mid-Atlantic it considers being affected by the storm, thus applicability of this relief should be considered based on the taxpayer specific facts.
Taxpayers also need to keep in mind that the extension of time to file the return does not extend the time for making a payment of tax. Thus, if the taxpayers expect to owe tax at the time the extension is being filed, the taxpayers should make a payment of tax with the extension.
Additionally, New York State has postponed tax filing and payment deadlines for taxpayers who were directly affected by Winter Storm Stella. Certain returns filed or tax payments made will not be subject to any late filing, late payment, or underpayment penalties or interest for the period from March 14, 2017, through March 19, 2017. Deadlines eligible for postponement are detailed in the announcement.