The flooding that occurred in Eastern Kentucky has been an absolute tragedy and our hearts go out to the families affected by it. In response to the disaster, the Internal Revenue Service announced on August 1, 2022, that tax relief will be issued for those affected. The following counties can qualify for either individual or business tax relief: Breathitt, Clay, Floyd, Johnson, Knott, Leslie, Letcher, Magoffin, Martin, Owsley, Perry, Pike, and Wolfe.
Those who qualify for tax relief must have a tax deadline falling on or after July 26, 2022. Those deadlines have been extended until November 15, 2022. This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until November 15, 2022, to file. Additionally, quarterly tax payments for businesses will be extended as well. Casualty losses can be claimed either on the 2021 or 2022 tax year.
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 IRS abate the penalty.