The IRS announced that taxpayers who have been affected by the earthquakes that began on December 28, 2019, in Puerto Rico may qualify for tax relief.
The IRS release—PR-2020-01 (January 17, 2020)—notes that the president declared a major disaster occurred in Puerto Rico. Subsequently, the IRS announced that affected taxpayers in Adjuntas, Arecibo, Cabo Rojo, Ciales, Corozal, Guánica, Guayanilla, Hormigueros, Jayuya, Juana Díaz, Lajas, Lares, Las Marías, Maricao, Mayagüez, Morovis, Orocovis, Peñuelas, Ponce, Sabana Grande, San Germán, San Sebastián, Utuado, Villalba and Yauco may qualify for tax relief. The IRS release was updated on March 11, 2020, to include Aguada, Añasco, Barceloneta, Coamo, Moca, Naranjito, Salinas, and Santa Isabel.
The available tax relief includes certain postponed deadlines for taxpayers who reside or have a business in the disaster area—including certain deadlines falling on or after December 28, 2019, and before April 30, 2020. These taxpayers are allowed additional time to file through April 30, 2020. In addition penalties on payroll and excise tax deposits due on or after December 28, 2019, and before January 13, 2020, may be abated.
The IRS release concludes that 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 is directed to call the telephone number on the notice to have the IRS abate the penalty.
The Puerto Rico Department of Treasury previously issued guidance providing tax relief with respect to Puerto Rican taxes. Read TaxNewsFlash
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.