As we communicated in a recent Alert, we are constantly monitoring all potential disaster-related tax relief, such as the Hurricane Florence Employee Retention Tax Credit recently proposed in House Bill 6854, and although that credit is still just potential and has not been finalized, the IRS has announced extensions on filing deadlines for victims of recent hurricanes.
Specifically, as published on the IRS site for Tax Relief in Disaster Situations, affected taxpayers in designated counties impacted by both Hurricane Florence and Hurricane Michael have more time to make tax payments and file tax returns and related forms. This reflects the common IRS practice of giving those affected by disasters additional time to perform time-sensitive actions that are due to be performed on or after the onset date of the disaster. The extensions do not apply to certain information returns such as the W-2, 1098, 1099 or 5498s, Forms 1042-S or 8027, or to employment or excise tax deposits.
Employers in the areas qualifying for individual assistance, as published on IRS and FEMA websites, especially those in Florida, South Carolina, and North Carolina likely have applicable extensions on return and payment filings. In addition, the IRS has also offered extensions to taxpayers in areas affected by recent earthquakes, fires, tornados, typhoons, and other natural disasters.
We will continue to keep you informed of all disaster-related tax implications, and we are happy to assist you with the impacts of these recent extensions on your business. Please reach out to your First Advantage Tax Account Manager or legal counsel with any questions or concerns.