 Internal revenue service IRS tax news IRS Kentucky Storm flooding victims now eligible for tax relief October 17th deadline. Other dates extended to November 15th. What? Kentucky's got a storm? That's horrible. Just don't lose the whiskey for the love of God. This is one area where the government needs to help out. I was skeptical about the whole COVID thing, but I think we could all agree saving the whiskeys a priority worth declaring a crisis for. But first an attempt at a joke. They say I'm getting picky about the economy. So a couple of guys don't rinse out their socks. Picky, picky, picky. But it seems to me if a nose is so full of boogers it can't breathe. Deep breath. Deep breath. Deep breath. Somebody needs to start getting picky. Try this. I can't eat that. Picky, picky, picky. This economy can't breathe and rather than being picky. The current administration is clearly just one huge booger. It's a huge, huge, huge, huge. Which means we the people are the ones. They traded liberty for safety and us that need to start getting picky round here. We the people ended up losing both. And that giant booger should be the first thing we start picking on. It's bad enough picking on a straw man, but when you go around picking on poor little... That's how we get things done in America. That's how it's done. Just one thing at a time. I'm doing something. One thing at a time. Or put more poetically, we get things done picking just one booger at a time. I think he's up to something. One thing at a time, Bart. We'll clear the nose that is the economy. Where's the nose? The nose! Slow and steady. A handkerchief is coming, beloveds. Let us pray the Almighty. Just one booger at a time. We'll exhale a breath of compassion on us all. Don't get ahead of yourself, people. We lift our noses, club and unblown, in reverence to you. Then we can flick that booger out the wall saying... Send a handkerchief of blessed ones so that it may wipe us clean. Bye bye, Biden booger. Bless you. IR2022-145, August 2nd, 2022, Washington. Storm victims in parts of Kentucky now have until November 15, 2022 to file various individual and business tax returns and make tax payments. The Internal Revenue Service announced today. The IRS is offering relief to any area designated by the Federal Emergency Management Agency, otherwise known as FEMA, F-E-M-A. There's a link to FEMA here as qualifying for individual or public assistance. There are currently individuals and households that reside or have a business in. I'm going to butcher some of these names, but we'll give it a best shot hit. Brethit, Clay, Floyd, Johnson, Knot, Leslie, Letcher, Magethon, Magethon, Magethon, Martin, Osley, Perry, Pike and Wolfe counties in Kentucky qualify for tax relief. The same relief will be available to any other locality added later by FEMA. The current list of eligible localities is always available on the Disaster Relief page. There's a link to that here on irs.gov, irs.gov, irs.gov. The tax relief postpones various tax filing and payment deadlines that occurred starting on July 26, 2022. As a result, affected individuals and businesses will have until November 15, 2022 to file returns and pay any taxes that were originally due during this period. This means individuals who have a valid extension to file their 2021 return due to run out on October 17, so that's coming up 2022, will now have until November 15, 2022. So that's been extended October 17 to November 15. Just noted, however, that because tax payments related to these 2021 returns were due on April 18, 2022, those payments are not eligible for this relief. So remember, there's a difference between the filing requirement and the payment requirement, and we're trying to avoid penalties and interest by being in compliance here. So if you filed an extension to file, then you have until October 17 to file. If you owe taxes, that extension doesn't mean that you have an extension on owing the taxes. The IRS will still be tacking on penalties and interest most likely on the taxes owed. So if you think you owe any money, then you probably want to make your estimated payments or make the estimate to make the payment, even if you're filing at a later point in time, so that you can reduce the amount of penalties and interest and then file the tax return whenever you have the capacity to do so by November 15 that this is applicable to you. So the November 15 deadline 2022 deadline also applies to quarterly estimated income tax payments due on September 15 for 2022, and the quarterly payroll and excise tax returns normally due August 1 and August 31, 2022. So when we're thinking about businesses like sole proprietorships, for example, or pass-through entities possibly, then you might be making estimated tax payments as opposed to if you're a W-2 employee, then those withholdings are taken out of your wages as you go. So if you're in the category of making estimated tax payments, you might have an extension related to that, the same with the payroll taxes. If you're processing then the payroll, then you might have some relief in terms of the payroll. So businesses with an original or extended due date also have the additional time including, among others, calendar your partnerships and S corporations whose 2021 extensions run out on September 15, 2022 and calendar your corporations whose 2021 extensions run out on October 17, 2022. There's a similar process here with the extensions for the S corporations and the partnerships. I'm sorry, the S corporations and the C corporations are the things that we were mentioning here, I believe. So in addition, penalties on payroll and excise tax deposits due on or after July 26 and before August 10 will be abated as long as the deposits are made by August 10, 2022. The disaster assistance and emergency relief for individuals and businesses page, there's a link to that page here, has details on other returns, payments and tax related actions qualified for the additional time. The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Therefore, taxpayers do not need to contact the agency to get this relief. They should be able to determine where you are at, apply the relief automatically, and you should be able to file whenever the new deadlines are and so on and act in accordance with the new rules and they should be knowing that on their end, you shouldn't get penalties or interest on it. However, if an affected taxpayer receives a late filing, late payment penalty notice from the IRS that has an original or extended filing payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated. So if you do get action taken, penalties that you don't think should have happened, given the fact that you have this relief, then you could take action at that point in time. So hopefully you don't need to, but if you do get that letter or some penalties applied, something like that, then you want to contact them and address it. So in addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. So now your address of record is outside so it wouldn't be an automatic application in that case because the IRS would do so based on your address, but you are affected by it because your work is inside, you might have to take action in that case. You can't just assume that the IRS will be taking the action in that case because your address is outside the location. Taxpayers qualified for relief who live outside the disaster area need to contact the IRS at 866-562-5227. I won't repeat that multiple times, but there will be a link to this in the description so you can check it out here. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization. Individuals in 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 of 2022 return normally filed next year. So that would mean you'd get your kind of tax relief benefit on it next year or return for the prior year 2021 in this case. You kind of have the option of possibly choosing whichever would be the best outcome, possibly choosing the best outcome in terms of your taxes in general or when you can get the relief sooner. And note that obviously in the year that the problem happened, it might have stifled your income you would think at that point in time so your tax implications might be lower. So for some people it might not be as beneficial to take like a tax deduction or something like that in the year when your income is lower because you're going to be paying less taxes in any case possibly. So that's one thing to consider when you're looking at this. If you have the other year, you might have made more money and if you were working the full year when the disaster didn't happen and also if you claim 2021 in this case, then you might be able to file if you haven't filed yet with an extension. If you filed for an extension, then maybe it would be easiest to, you could still claim it in 2021 without a problem. Otherwise you might have to do an amended return if you had already filed 2021 possibly. So be sure to write the FEMA declaration number. That's DR4663KY, which you can, I'll have a link to this. So you can find that in the link so I won't repeat it five times. So on any return claiming a loss, you might want to put that on the return so they know that that loss, what it applies to the publication 547 for details. There's a link to that here. The tax relief is part of a coordinated federal response to the damage caused by these storms and is based on local damage assessments by FEMA for information on disaster recovery. You can visit disaster assistance.gov. There's a link to that here. There'll be a link to all the stuff here and you can get the information for the FEMA code and the numbers to call and whatnot in the link to this as well, which will be in the description.