Tax relief for disaster victims in California, Tennessee

Wildfire victims in California and storm and flood victims in Tennessee now have more time to file some returns and pay due taxes.

California wildfire victims have until Nov. 15, 2021, to file various individual and business tax returns and make tax payments. Wildfire-affected individuals and households that reside or have a business in Lassen, Nevada, Placer, and Plumas Counties qualify.

Following a federal disaster declaration, individuals who had a valid extension to file their 2020 returns, due to run out on Oct. 15, now have until Nov. 15 to file. The November deadline applies to the quarterly estimated tax payment, normally due Sept. 15, and to the quarterly payroll and excise tax returns, normally due Aug. 2.

Penalties on deposits due on or after July 14, 2021, and before July 29, 2021, will also be abated as long as the tax deposits were made by July 29.

In Tennessee, individuals and households affected by severe storms and flooding and who reside or have a business in Dickson, Hickman, Houston, and Humphreys Counties qualify for tax relief to the new year. Certain deadlines falling on or after Aug. 21 and before Jan. 3, 2022, are postponed through Jan. 3, 2022.

Affected individuals in Tennessee who had a valid extension to file their 2020 returns, due to run out on Oct. 15, now have until Jan. 3 to file. The January deadline also applies to the quarterly estimated tax payment normally due on Sept. 15. Penalties on deposits due on or after Aug. 21 and before Sept. 7 will also be abated if the tax deposits were made by Sept. 7.

The list of eligible localities is on the IRS disaster relief page.

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 penalty abated.

The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. Affected taxpayers who reside or have a business outside the covered disaster area should call the IRS disaster hotline, (866) 562-5227, to request this relief.

The IRS will also waive the usual fees and requests for copies of previously filed returns for affected taxpayers.