New Tax Deadlines for Rhode Island Individuals and Business Affected by Natural Disasters
The IRS has announced tax relief for individuals and businesses in parts of Rhode Island affected by severe storms, flooding, and tornadoes beginning on September 10. Taxpayers who have been affected by the recent changes now have until June 17, 2024, to submit a range of federal individual and business tax returns and fulfill their tax obligations. This relief applies to areas designated by FEMA, currently including Providence County, making residents and businesses in this locality eligible for the tax relief. Furthermore, any other Rhode Island localities added later to the disaster area will also receive the same relief.
To stay informed about eligible localities, individuals can visit the disaster relief page on IRS.gov
Filing and payment relief
The tax relief extends filing and payment deadlines that fell between Sept. 10, 2023, and June 17, 2024.
This means that individuals and businesses affected by the relief will have until June 17, 2024, to file returns and make tax payments originally due during this period.
The June 17, 2024, deadline now applies to various tax-related actions, including individual income tax returns and payments due on April 15, 2024, and 2023 contributions to:
IRAs and health savings accounts
quarterly estimated income tax payments
quarterly payroll and excise tax returns
partnership and S corporation returns
corporation and fiduciary returns
and tax-exempt organization returns.
Taxpayers who were granted an extension to file their 2022 returns now have until June 17, 2024, to complete the filing process.
The relief does not apply to tax payments for the 2022 tax year. Additionally, penalties for failing to make payroll and excise tax deposits between Sept. 10 and Sept. 25, 2023, will be waived if the deposits were made by Sept. 25, 2023. The IRS disaster relief page provides details on other qualifying returns, payments, and tax-related actions. Taxpayers with an IRS address of record in the disaster area automatically receive filing and penalty relief. Those without an IRS address of record in the disaster area or whose records are located in the affected area can request penalty abatement or relief by contacting the IRS. This includes workers assisting with relief activities affiliated with recognized organizations.
Reminder about extensions
If you need an extension beyond June 17, 2024, to file your 2023 federal income tax return, the IRS advises requesting it electronically by April 15, 2024. For taxpayers in a disaster area, the option to request an extension between April 15 and June 17, 2024, is available, but only via paper submission. Whether you choose electronic or paper filing, the deadline for filing your return will be extended to Oct. 15, 2024, although payments are still due on June 17, 2024.
Visit IRS.gov/extensions for details.
Additional tax relief
If you are an individual or business located in a federally declared disaster area and have suffered uninsured or unreimbursed disaster-related losses, you have the option to claim these losses on either your 2023 tax return (filed this year) or your 2022 tax return. You have up to six months after the due date of your federal income tax return for the disaster year to make this election, with the deadline being October 15, 2024, for individual taxpayers. When claiming a loss, remember to include the FEMA declaration number – 4753-DR – on your return. See Publication 547, Casualties, Disasters, and Thefts, for details.
Generally, qualified disaster relief payments are not considered as part of gross income. This means that individuals affected by a disaster can exclude from their gross income any amounts they receive from a government agency for essential personal, family, living, or funeral expenses. They can also exclude payments for home repair, rehabilitation, or replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for details.
Taxpayers who are part of a retirement plan or individual retirement arrangement (IRA) may qualify for additional relief. This includes the option to take a special disaster distribution that is exempt from the usual 10% early distribution tax and allows the income to be spread over three years. Another option is to make a hardship withdrawal. It's important to note that each plan or IRA has its own set of rules and guidance for participants to adhere to.
The IRS may offer further disaster relief in the future as part of the coordinated federal response to the storm damage. This tax relief is determined based on local damage assessments conducted by FEMA. For details on disaster recovery, please refer to the IRS website or visit DisasterAssistance.gov
The IRS has announced tax relief for individuals and businesses in parts of Rhode Island affected by severe storms, flooding, and tornadoes beginning on September 10. Taxpayers who have been affected by the recent changes now have until June 17, 2024, to submit a range of federal individual and business tax returns and fulfill their tax obligations. This relief applies to areas designated by FEMA, currently including Providence County, making residents and businesses in this locality eligible for the tax relief. Furthermore, any other Rhode Island localities added later to the disaster area will also receive the same relief. To stay informed about eligible localities, individuals can visit the disaster relief page on IRS.gov
Filing and payment relief
The tax relief extends filing and payment deadlines that fell between Sept. 10, 2023, and June 17, 2024. This means that individuals and businesses affected by the relief will have until June 17, 2024, to file returns and make tax payments originally due during this period.
The June 17, 2024, deadline now applies to various tax-related actions, including individual income tax returns and payments due on April 15, 2024, 2023 contributions to IRAs and health savings accounts, quarterly estimated income tax payments, quarterly payroll and excise tax returns, partnership and S corporation returns, corporation and fiduciary returns, and tax-exempt organization returns. Taxpayers who were granted an extension to file their 2022 returns now have until June 17, 2024, to complete the filing process.
The relief does not apply to tax payments for the 2022 tax year. Additionally, penalties for failing to make payroll and excise tax deposits between Sept. 10 and Sept. 25, 2023, will be waived if the deposits were made by Sept. 25, 2023. The IRS disaster relief page provides details on other qualifying returns, payments, and tax-related actions. Taxpayers with an IRS address of record in the disaster area automatically receive filing and penalty relief. Those without an IRS address of record in the disaster area or whose records are located in the affected area can request penalty abatement or relief by contacting the IRS. This includes workers assisting with relief activities affiliated with recognized organizations.
Reminder about extensions
If you need an extension beyond June 17, 2024, to file your 2023 federal income tax return, the IRS advises requesting it electronically by April 15, 2024. For taxpayers in a disaster area, the option to request an extension between April 15 and June 17, 2024, is available, but only via paper submission. Whether you choose electronic or paper filing, the deadline for filing your return will be extended to Oct. 15, 2024, although payments are still due on June 17, 2024. Visit IRS.gov/extensions for details.
Additional tax relief
If you are an individual or business located in a federally declared disaster area and have suffered uninsured or unreimbursed disaster-related losses, you have the option to claim these losses on either your 2023 tax return (filed this year) or your 2022 tax return. You have up to six months after the due date of your federal income tax return for the disaster year to make this election, with the deadline being October 15, 2024, for individual taxpayers. When claiming a loss, remember to include the FEMA declaration number – 4753-DR – on your return. See Publication 547, Casualties, Disasters, and Thefts, for details.
Generally, qualified disaster relief payments are not considered as part of gross income. This means that individuals affected by a disaster can exclude from their gross income any amounts they receive from a government agency for essential personal, family, living, or funeral expenses. They can also exclude payments for home repair, rehabilitation, or replacement of its contents. See Publication 525, Taxable and Nontaxable Income, for details.
Taxpayers who are part of a retirement plan or individual retirement arrangement (IRA) may qualify for additional relief. This includes the option to take a special disaster distribution that is exempt from the usual 10% early distribution tax and allows the income to be spread over three years. Another option is to make a hardship withdrawal. It's important to note that each plan or IRA has its own set of rules and guidance for participants to adhere to.
The IRS may offer further disaster relief in the future as part of the coordinated federal response to the storm damage. This tax relief is determined based on local damage assessments conducted by FEMA. For details on disaster recovery, please refer to the IRS website or visit DisasterAssistance.gov
Disclaimer: This article is for informational and educational purposes only and does not constitute legal tax advice. Advanced Tax Solutions is not liable or responsible for any damages resulting from or related to your use of this information. It is your responsibility to refer to official IRS documentation for information regarding any tax laws or tax information shown here.
