IRS Provides Tax Relief for Victims of Oregon Wildfires
By Michael D’Addio, Principal, Tax & Business Services
On Thursday, September 17, the IRS issued a release extending deadlines for victims of the Oregon wildfires.
The relief postpones various tax filing and payment deadlines that occurred starting on September 7, 2020 and before January 15, 2021. Affected individuals and businesses have until January 15, 2021 to file returns and pay taxes originally due during this period. While this extends the October 15, 2020 deadline for filing individual or C corporation returns on extension, since the related payments were due on July 15, 2019, the related payment of taxes is not extended.
The extension also applies to quarterly estimates which were due on September 15, 2020, quarterly payroll and excise taxes normally due on November 2, 2020. It also applies to calendar year tax-exempt organizations which have a valid extension until November 16, 2020.
Penalties on payroll and excise tax deposits due on or after September 7, and before September 22, will be abated as long as the deposits are made by September 22, 2020.
The relief relates to an area designated by the Federal Emergency Management Agency (FEMA) as qualifying to assistance. This is currently Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn and Marion counties in Oregon and will include others which are added in the future.
Affected taxpayers with an IRS address of record located in the disaster area is entitled to automatic filing and penalty relief. Those who have an address outside of the area, but whose records necessary to meet a deadline during the postponement period are located in a designated area, should contact the IRS at 866-562-5227. The IRS expresses a willingness to work with these taxpayers.
It is likely that the IRS will give similar relief for those in other states which are the subject of wildfires and other disasters. We will keep you updated as such relief is provided.