Following President Trump’s major-disaster declaration, the IRS issued guidance on September 16, 2020, deferring tax filing and payment deadlines for taxpayers impacted by the Oregon wildfires and straight-line winds.
The major-disaster declaration allows for individual assistance from the federal government—including relief from the IRS.
The IRS guidance gives affected taxpayers until January 15, 2021, to file individual and business tax returns, as well as make tax payments, for filings or amounts due between September 7, 2020, and January 15, 2021.
Affected taxpayers include anyone who resides or has a business in a covered area, a designation which currently applies to the following Oregon counties:
Counties added to the major-disaster declaration later will qualify for this tax filing and payment relief. Check the FEMA site for this disaster for updates.
The IRS will automatically identify taxpayers located in the covered areas and will apply filing and payment relief. The IRS will also work with any taxpayer who lives outside the disaster area but who has records located in the affected area that are necessary to meet a deadline occurring during the postponement period.
Taxpayers who qualify for relief and live outside the disaster area will need to contact the IRS at (866) 562-5227.
Filing and Payment Relief
The IRS relief provides that individuals and businesses with an original or extended tax-filing deadline or a tax-payment deadline have until January 15, 2021, to file their returns and pay any taxes due.
The guidance specifies that the relief applies to the following returns, which have either an original or extended due date occurring between September 7, 2020, and January 15, 2021:
- Individual, corporate, and estate and trust income tax returns
- Partnership, S corporation, and trust returns
- Estate, gift, and generation-skipping transfer tax returns
- Annual-information returns of tax-exempt organizations
- Employment and certain excise tax returns
It also applies to taxpayers with estimated income tax payments originally due on or after September 7, 2020, and before January 15, 2021. Penalties won’t be assessed as long as such payments are made on or before January 15, 2021.
Additionally, affected taxpayers are provided relief for time-sensitive acts listed in Treasury Regulation Section 301.7508A-1(c)(1) and Revenue Procedure 2018-58, including accounting method changes and certain elections.
What Isn’t Covered
Unless specifically listed in Revenue Procedure 2018-58, the postponement of time to file and pay doesn’t apply to the following:
- Information returns in the W-2, 1094, 1095, 1097, 1098, or 1099 series
- Forms 1042-S, 3921, 3922, or 8027
- Employment and excise tax deposits
Penalties on deposits due between September 7, 2020, and September 22, 2020, will be abated as long as the tax deposits are made by September 22, 2020, however.
State Tax Filings
While some states automatically conform to an IRS deferral due to a major-disaster declaration, not all do. It’s important to check with each state in which taxes are filed to determine if a deferral is permitted.
We’re Here to Help
For help determining whether you’re eligible for filing and payment relief due to the Oregon wildfires, contact your Moss Adams professional.