Individuals and households affected by Tropical Storm Fred that reside or have a business in the North Carolina counties of Avery, Buncombe, Haywood, Madison, Transylvania, Watauga, and Yancey qualify for tax relief according to an announcement from the Internal Revenue Service on September 10, 2021.
Tax-filing and tax-payment deadlines falling on or after August 16, 2021, and before December 15, 2021, are postponed through December 15, 2021.
The announcement came just days after President Biden approved a disaster declaration making federal assistance available for recovery efforts in the areas affected by the remnants of Tropical Storm Fred on August 16–18, 2021.
Individuals who had a valid extension to file their 2020 returns, due to run out on October 15, will now have until December 15, 2021 to file. Because tax payments related to these 2020 returns were due on May 17, 2021, those payments are not eligible for this relief.
Businesses with extensions have the additional time including, among others, calendar-year partnerships and S corporations whose 2020 extensions run out on September 15, 2021 and calendar-year corporations whose 2020 extensions run out on October 15, 2021.
The December 15, 2021, deadline applies to the quarterly estimated tax payment, normally due on September 15 and to the quarterly payroll and excise tax returns normally due on December 15, 2021. It also applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on December 15, 2021. Penalties on deposits due on or after August 16, 2021, and before August 31, 2021, will be abated as long as the tax deposits were made by August 31, 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 should call the telephone number on the notice to have the IRS abate the penalty.
For additional information, please visit the announcement on the IRS website.
If you have questions about this issue or other policy matters, please contact NCACPA Director of Advocacy Robert Broome, CAE.