IRS provides tax relief for taxpayers affected by March 2021 storms in Tennessee

IRS announced that taxpayers affected by severe storms now have until August 2, 2021, to file various individual and business tax returns.

IRS announced tax relief for taxpayers affected by severe storms in Tennessee

The IRS announced that taxpayers in Tennessee affected by severe storms that began March 25, 2021, now have until August 2, 2021, to file various individual and business tax returns and make tax payments.

The IRS release—TN-2021-01 (May 13, 2021)—explains that after the disaster declaration by the Federal Emergency Management Agency (FEMA), “affected taxpayers” in Campbell, Cannon, Cheatham, Claiborne, Clay, Davidson, Decatur, Fentress, Grainger, Hardeman, Henderson, Hickman, Jackson, Madison, Marion, Maury, McNairy, Moore, Overton, Scott, Smith, Wayne, Williamson, and Wilson counties may be eligible for tax relief. This includes individual taxpayers affected by the storms if residing or having a business these counties.

The FEMA declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area.

  • Certain deadlines falling on or after March 25, 2021, and before August 2, 2021, are postponed through August 2, 2021, including the May 17 deadline for filing 2020 individual income tax returns and paying any tax due.
  • Taxpayers also have until August 2 to make 2020 IRA contributions.
  • The August 2, 2021 deadline applies to the first quarter estimated tax payment and to quarterly payroll and excise tax returns normally due on June 15.
  • The postponed deadline applies to tax-exempt organizations, operating on a calendar-year basis, that have a 2020 return due on May 17, 2021.
  • Penalties on deposits due on or after March 25, 2021, and before April 9, 2021, will be abated as long as the tax deposits were made by April 9, 2021.

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. 

 

 

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