Some individual taxpayers and businesses in certain Tennessee counties have gotten some good news for a change: They have until August 2 to file their various tax returns with the IRS.
These taxpayers have had their share of bad news lately, mostly due to spring storms, flooding and tornadoes that ravaged the state on March 25 and again on April 3.
Who gets relief?
The Internal Revenue Service granted the relief package based on the counties that have been declared federal disaster areas in Tennessee by the Federal Emergency Management Agency (FEMA). This makes the relief benefits available to individuals and businesses with addresses on record in the following counties:
This list may expand over time, as new counties and communities are declared federal disaster areas. For a current list of eligible locations, check out the disaster relief page on IRS.gov.
The relief package takes various tax filing and payment deadlines that would have occurred any time since March 25 and pushes them back, giving affected individuals and businesses until August 2 to file their taxes and pay any tax due.
Deadlines that fall under the postponement include 2020 individual income tax returns normally due May 17, various 2020 business returns normally due April 15, and the deadline for 2020 IRA contributions.
Also delayed: quarterly estimated income tax payments due April 15 and June 15, quarterly payroll and excise tax returns due on April 30, and tax-exempt calendar-year returns normally due May 17.
The IRS says it will abate any penalties on payroll and excise tax deposits due on or after March 25 and before April 9, as long as the deposits are made by April 9.
Remember, relief measures are granted automatically; there’s no need to contact the IRS to apply. Whenever an affected taxpayer files, the IRS checks the address of record during processing and applies the relief.
Those who live outside a disaster area but have records needed for filing located within the disaster area should call the IRS at 866.562.5227. Workers helping with disaster relief efforts in the affected counties who are affiliated with a recognized government or philanthropic organization should also call the number.
The tax relief covers six states
The relief measures for Tennessee counties is the latest package set in motion by the IRS. It joins previously announced measures in five other southern states:
- Individuals and businesses in Texas, Oklahoma, and Louisiana have until June 15 to file and pay. All taxpayers in these three states qualify for relief.
- Individuals and businesses in parts of Kentucky have until June 30 to file and pay.
- Individuals and businesses in parts of Alabama have until August 2 to file and pay.
Filers, whether individual taxpayers or businesses, have the option to claim their uninsured or unreimbursed disaster losses either on the return for the year the loss occurred (such as the 2021 return to be filed next year), or the return for the prior year.
For any return that claims a loss, write the FEMA disaster declaration number – in this case, 4601DR – on the return before it’s filed. Publication 547 has more information on the process.
If affected taxpayers in the disaster areas need an extra extension beyond the relief given, they can submit a request for an automatic extension, pushing their filing deadline back to October 15. The IRS reminds, however, that an additional extension applies only to filing; payment will be due on the date specified in the relief measures.