IRS provides tax relief for certain taxpayers affected by storms in Arizona

Salt River Pima-Maricopa Indian community

Affected by storms in Arizona

The IRS today announced that certain taxpayers affected by July storms in Arizona (i.e., those who reside in or have a business in the Salt River Pima-Maricopa Indian community) now have until November 15, 2022, to file various individual and business tax returns and make tax payments.

According to the IRS release—AZ-2022-08 (September 8, 2022)—the tax relief is provided after a recent disaster declaration issued by the Federal Emergency Management Agency (FEMA). The 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.

For instance, certain deadlines falling on or after July 17, 2022, and before November 15, 2022, are postponed through November 15, 2022.

  • Individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until November 15, 2022, to file. However, because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief.
  • The November 15, 2022 deadline also applies to the quarterly estimated tax payments normally due on September 15, 2022, and to the quarterly payroll and excise tax returns normally due on August 1 and October 31, 2022.
  • Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations with 2021 extensions that  run out on September 15, 2022, and calendar-year corporations with 2021 extensions that run out on October 17, 2022.

Penalties on payroll and excise tax deposits due on or after July 17, 2022, and before August 1, 2022, will be abated as long as the tax deposits were made by August 1, 2022.

If an affected taxpayer receives a late-filing or late-payment penalty notice from the IRS but 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 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 3712, 1801 K Street NW, Washington, DC 20006.