The Internal Revenue Service (IRS) announced that victims of the severe storms and flooding that took place on March 9, 2019 in Nebraska and on March 12, 2019 in Iowa may qualify for tax relief from the IRS.
The President has declared that a major disaster occurred in the states of Nebraska and Iowa. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA), the IRS announced today that affected taxpayers in certain areas will receive tax relief.
- In Nebraska, individuals who reside or have a business in Butler, Cass, Colfax, Dodge, Douglas, Nemaha, Sarpy, Saunders and Washington counties may qualify for tax relief.
- In Iowa, individuals who reside or have a business in Fremont, Harrison, Mills, Monona and Woodbury counties may qualify for tax relief.
The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after March 9, 2019 in Nebraska and March 12, 2019 in Iowa and before July 31, 2019, are granted additional time to file through July 31, 2019. This includes 2018 individual income tax returns and payments normally due on April 15, 2019. It also includes the quarterly estimated income tax payments due on April 15, 2019 and June 17, 2019. Eligible taxpayers will also have until July 31, 2019 to make 2018 IRA contributions.
In addition, penalties on payroll and excise tax deposits due on or after March 9, 2019 in Nebraska and March 12, 2019 in Iowa, and before March 27, 2019, will be abated as long as the deposits were made by March 27, 2019.
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 that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.
Times of natural disaster can be overwhelming. Not sure where to start? Start here.