The IRS has announced that taxpayers in certain areas of California, Alabama and Georgia will have their tax filing deadline extended from May 15 to October 16 due to the natural disasters that have occurred recently. This gives individuals and business owners an additional five months to file their returns without penalty. Let’s take a closer look at the details of this extension.
When Does the Extension Apply?
The extension applies for those taxpayers whose principal place of residence or place of business was located in an area designated as a federal disaster area by FEMA. The following counties are included in this extension:
- Alameda, Butte, Lake, Mendocino, Napa, San Mateo, Santa Cruz, Solano, Sonoma (California)
- Baldwin and Mobile (Alabama)
- Crisp County (Georgia)
In addition to individuals affected by these disasters, businesses such as sole proprietorships, partnerships and corporations may also qualify for relief. Keep in mind that other taxes related to these disasters—estimated taxes (Form 1040-ES), gift taxes (Form 709) and estate taxes (Form 706)—are also eligible for this extension.
What Are the Benefits?
The primary benefit of this extension is that it allows individuals and businesses impacted by these disasters additional time to file their returns without incurring any penalties or interest charges from the IRS. This means taxpayers don’t have to worry about getting caught up with filing amid all the chaos caused by the natural disaster. Additionally, taxpayers can claim losses related to these disasters on their 2019 tax return instead of having to wait until they file next year’s return.
Due to the IRS extension, impacted taxpayers now have plenty of time to get their affairs in order so they can file their taxes without worrying about any penalties or interest charges from the IRS. If you live or work in any of these areas and need more time to complete your tax return this year, be sure to take advantage of this recent announcement. If you want to learn more about strategies that can help manage risks, including tax liabilities, schedule an appointment with Wealth Advocacy today.
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