Tax relief for taxpayers in Louisiana affected by Hurricane Delta

Tax relief for taxpayers in Louisiana, Hurricane Delta

The IRS today issued a release announcing that certain taxpayers in Louisiana that were affected by Hurricane Delta (beginning date October 6, 2020) now have until February 16, 2021, to file individual and business tax returns and to make certain tax payments.

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As explained in the IRS release—IR-2020-236—the tax relief is available with regard to any area designated by the Federal Emergency Management Agency as qualifying for individual assistance, or the parishes of: Acadia, Calcasieu, Cameron, Jefferson Davis, and Vermilion.

The IRS release notes:

  • Taxpayers in localities qualifying for individual assistance (if added later to the disaster area, elsewhere in the state and in neighboring states) will automatically receive the same filing and payment relief.
  • The tax relief postpones various tax filing and payment deadlines that occurred starting on October 6, 2020.
  • Affected individuals and businesses will have until February 16, 2021, to file returns and pay any taxes that were originally due during this period. For instance, individuals who had a valid extension to file their 2019 return due to run out on October 15, 2020, will now have until February 16, 2021, to file. In addition, for any of these localities that were also affected by Hurricane Laura, there is an additional extension beyond the December 31, 2020 deadline announced in August 2020. Read TaxNewsFlash
  • Tax payments relating to these 2019 returns were due on July 15, 2020, and thus, these payments are not eligible for this relief.
  • The deadline of February 16, 2021, also applies to quarterly estimated income tax payments due on January 15, 2021, and the quarterly payroll and excise tax returns normally due on November 2, 2020, and February 1, 2021.
  • The relief applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to expire  November 16, 2020.
  • Businesses with extensions also have the additional time including, among others, calendar-year corporations whose 2019 extensions expired October 15, 2020.    
  • In addition, penalties on payroll and excise tax deposits due on or after October 6 and before October 21, will be abated as long as the deposits are made by October 21, 2020.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. However, 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 falling within the postponement period, the taxpayer is directed to call the telephone number on the notice to have the penalty abated.

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. 

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