Relief for taxpayers affected by September 2020 storm and flooding (Puerto Rico)

Relief for taxpayers affected by September 2020 storm

The IRS issued a release announcing that certain taxpayers in Puerto Rico affected by a September 13 severe storm and flooding have until January 15, 2021, to file individual and business tax returns and to make certain tax payments.

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As explained in the IRS release—PR-2020-03 (December 8, 2020)—individuals who reside or have a business in Arecibo parish may qualify for tax relief. Taxpayers in localities that may be added later to the disaster area will automatically receive the same filing and payment relief.

The available tax relief includes certain postponed deadlines—including deadlines falling on or after September 13, 2020, and before January 15, 2021—for taxpayers who reside or have a business in the disaster area. This includes individual and business tax filers that had a valid extension to file their 2019 return due to end on October 15, 2020.

The January 15, 2021 deadline also applies to:

  • Third quarter estimated tax payment due on September 15, 2020
  • The quarterly payroll and excise tax returns normally due on November 2, 2020
  • Tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on November 16, 2020

In addition, penalties on deposits due on or after September 13, 2020, and before September 28, 2020, will be abated as long as the tax deposits were made by September 28, 2020.

The IRS release also states that if an affected taxpayer with an original or extended filing, payment or deposit due date that falls within the postponement period and receives a late-filing or late-payment penalty notice from the IRS, the taxpayer is directed to call the telephone number on the notice to have the IRS abate the penalty.

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