Hurricane Lee victims in two states get tax relief from IRS

Victims of Hurricane Lee anywhere in Maine and Massachusetts now have until Feb. 15 next year to file various federal individual and business tax returns and make tax payments.

The Internal Revenue Service is offering relief to any area designated a disaster area by the Federal Emergency Management Agency, which currently includes all 16 counties in Maine and all 14 in Massachusetts. (The list of eligible localities is always available on the disaster relief page on IRS.gov.)

Individuals and households that reside or have a business in these counties qualify for this relief, which postpones various tax filing and payment deadlines that occurred from Sept. 15, 2023, through Feb. 15, 2024.

The Feb. 15 deadline now applies to:

• Individuals who had a valid extension to file their 2022 return due to run out on Oct. 16. Because tax payments related to these returns were due on April 18, 2023, those payments are ineligible for this relief.
• Quarterly estimated income tax payments normally due on Sept. 15, 2023, and Jan. 16, 2024.
• Quarterly payroll and excise tax returns normally due on Oct. 31, 2023, and Jan. 31, 2024.
• Calendar-year partnerships and S corporations whose 2022 extensions ran out on Sept. 15.
• Calendar-year corporations whose 2022 extensions run out on Oct. 16, 2023.
• Calendar-year tax-exempt organizations whose extensions run out on Nov. 15, 2023. 

In addition, penalties for the failure to make payroll and excise tax deposits due on or after Sept. 15, 2023, and before Oct. 2, 2023, will be abated if the deposits are made by Oct. 2.

The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for relief during the postponement period. The IRS automatically provides filing and penalty relief to any taxpayer with an address of record in the disaster area. These taxpayers do not need to contact the agency to get this relief.

It is possible an affected taxpayer may not have an IRS address of record located in the disaster area (if, for instance, they moved to the disaster area after filing their return). Should such an affected taxpayer get a late-filing or late-payment penalty notice for the postponement period, they should call the number on the notice to have the penalty abated.

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 in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at (866) 562-5227, including workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. 

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred or the return for the prior year. Taxpayers have up to six months after the due date of the taxpayer’s federal income tax return for the disaster year, without regard to any extension of time to file, to make the election. They should write the FEMA declaration number — 3598-EM for Maine, 3599-EM for Massachusetts — on any return claiming a loss.