Victims of Mississippi water crisis get filing relief

Victims of the water crisis that began in Mississippi on Aug. 30 now have until February to file various individual and business returns and make tax payments.

Following the recent disaster declaration issued by the Federal Emergency Management Agency, the Internal Revenue Service said that affected taxpayer individuals and households that reside or have a business in Hinds County qualify for tax relief. Certain deadlines falling on or after Aug. 30 and before Feb. 15, 2023, are postponed through Feb. 15.

Individuals who had a valid extension to file their 2021 return due to run out on Oct. 17 now have until Feb. 15 to file. Because tax payments related to these 2021 returns were due on April 18, those payments are not eligible for this relief.

The February deadline also applies to the quarterly estimated tax payment normally due on Sept. 15, 2022, and Jan. 15, 2023, and the quarterly payroll and excise tax returns, normally due on Oct. 31, 2022, and Jan. 31, 2023. 

Businesses with an original or extended due date also have the additional time including, among others, calendar-year partnerships and S corporations whose 2021 extensions run out on Sept. 15 and calendar-year corporations whose 2021 extensions run out on Oct. 17. Penalties on payroll and excise tax deposits due on or after Aug. 30 and before Sept. 14 will be abated as long as the deposits are made by Sept. 14.

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 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 located outside the covered disaster area should call (866) 562-5227 to request this relief.

Other notes: 

• Affected taxpayers claiming the disaster loss on their return should put the disaster designation “Mississippi Water Crisis” in bold letters at the top of the form. They should include the FEMA disaster declaration number, “EM -3582-MS.”

• The IRS waives fees for requests for copies of previously filed returns for affected taxpayers. Taxpayers should put “Mississippi Water Crisis” in bold letters at the top of Form 4506 or Form 4506-T.