[Michigan] IRS has extended tax deadlines for storm victims

Residents of certain Michigan counties will be permitted to wait until November 1, 2021, to file federal tax returns and make tax payments that would normally be due before that date, Rust Wire reports.

The IRS extended the deadlines in response to the severe storms, flooding and tornadoes that began on June 25, 2021, in parts of the state that were declared a disaster area by FEMA. The tax relief reportedly applies to residents of Macomb, Oakland, Washtenaw and Wayne Counties.

A number of federal tax filing and payment due dates for individuals and businesses from June 25 to October 31 will be shifted to November 1, 2021. This will not include tax payments related to 2020 returns that were due on May 17, 2021 but it will include:

* Quarterly estimated income tax payments normally due on September 15;

* Quarterly payroll and excise tax returns ordinarily due on August 2;

* Valid extension filings normally due on October 15; and

* Filing of Form 2290, Heavy Highway Vehicle Use Tax Return, normally due on August 31.

Penalties on payroll and excise tax deposits due from June 25 to July 12 will also be waived if the deposits were made by July 12, 2021.

Residents do not have to contact the IRS to get this relief. However, anyone receiving a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, should call the number on the notice to have the penalty abated.

The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers affected by the storm. Anyone requesting copies of a tax return or a tax return transcript must write “Michigan Severe Storms, Flooding, and Tornadoes” in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS.

In addition, the IRS will work with any taxpayer who lives outside Michigan, but whose records are needed to meet a deadline occurring during the postponement period are located in the state. Taxpayers qualifying for relief who live in another state need to contact the IRS at 866-562-5227. 

This includes workers assisting the relief activities who are affiliated with a recognised government or philanthropic organisation.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year) or the return for the prior year. This means that taxpayers can if they choose, claim these losses on their 2020 return.

The FEMA declaration number (FEMA 4607-DR) must be written on any return claiming a loss. It’s also a good idea for affected taxpayers claiming the disaster loss on a 2020 return to put the Disaster Designation (“Michigan Severe Storms, Flooding, and Tornadoes”) in bold letters at the top of the form. IRS Publication 547 contains further details.

Residents of certain Michigan counties will be permitted to wait until November 1, 2021, to file federal tax returns and make tax payments that would normally be due before that date, Rust Wire reports.

The IRS extended the deadlines in response to the severe storms, flooding and tornadoes that began on June 25, 2021, in parts of the state that were declared a disaster area by FEMA. The tax relief reportedly applies to residents of Macomb, Oakland, Washtenaw and Wayne Counties.

A number of federal tax filing and payment due dates for individuals and businesses from June 25 to October 31 will be shifted to November 1, 2021. This will not include tax payments related to 2020 returns that were due on May 17, 2021 but it will include:

* Quarterly estimated income tax payments normally due on September 15;

* Quarterly payroll and excise tax returns ordinarily due on August 2;

* Valid extension filings normally due on October 15; and

* Filing of Form 2290, Heavy Highway Vehicle Use Tax Return, normally due on August 31.

Penalties on payroll and excise tax deposits due from June 25 to July 12 will also be waived if the deposits were made by July 12, 2021.

Residents do not have to contact the IRS to get this relief. However, anyone receiving a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, should call the number on the notice to have the penalty abated.

The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers affected by the storm. Anyone requesting copies of a tax return or a tax return transcript must write “Michigan Severe Storms, Flooding, and Tornadoes” in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS.

In addition, the IRS will work with any taxpayer who lives outside Michigan, but whose records are needed to meet a deadline occurring during the postponement period are located in the state. Taxpayers qualifying for relief who live in another state need to contact the IRS at 866-562-5227. 

This includes workers assisting the relief activities who are affiliated with a recognised government or philanthropic organisation.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year) or the return for the prior year. This means that taxpayers can if they choose, claim these losses on their 2020 return.

The FEMA declaration number (FEMA 4607-DR) must be written on any return claiming a loss. It’s also a good idea for affected taxpayers claiming the disaster loss on a 2020 return to put the Disaster Designation (“Michigan Severe Storms, Flooding, and Tornadoes”) in bold letters at the top of the form. IRS Publication 547 contains further details.