Connecticut Storm Victims Qualify for Tax Relief

Early in January, severe storms swept across the state of Connecticut, causing millions of dollars worth of damage and leaving many residents without shelter. These problems were exacerbated by the partial breach of at least two dams, which left an estimated 5,000 people without power and many others stranded in their homes. In an effort to aid victims of these storms, the IRS is offering tax relief to qualifying individuals, who now have until this summer to file tax returns and make tax payments.

Qualifying Counties 

The IRS is offering tax relief to Connecticut taxpayers who live in areas that have been declared disaster areas by FEMA. This includes New London County, as well as the Mohegan and the Mashantucket Pequot Tribal Nations. Taxpayers who live or own a business in these areas automatically qualify for tax relief.

Filing and Payment Relief

 Taxpayers who have been affected by the Connecticut storms now have until June 17th of this year to file both individual and business tax returns and to pay off any tax debts that were due starting on January 10th. This means that the new deadline will apply to the following:

• Individual income tax returns and payments typically due on April 15th;
• Any contributions to IRAs and health savings accounts from 2023;
• Quarterly estimated tax payments due on January 16th and April 15th;
• Quarterly payroll and excise tax returns due on January 31st and April 30th;
• Returns from calendar-year and S corporation due on March 15th;
• Returns and payments from calendar-year corporations due in April; and
• Returns from tax-exempt organizations due by May 15th.

Besides having more time to file returns and make tax payments, all penalties for failing to make payroll and excise tax deposits that are normally due between January 10th and January 25th will be abated for those who make deposits by the January 25th deadline.

Qualifying for Relief 

The storm-related tax filing and penalty relief is provided automatically to qualifying taxpayers (e.g. those with an address of record in a disaster area). This means that taxpayers don’t have to reach out to the IRS or apply for relief in order to receive it. If, however, an affected taxpayer moved to a disaster area after filing a return, or doesn’t have an address of record in the area for another reason, then he or she could end up receiving a penalty notice. In these cases, taxpayers should be sure to reach out to the IRS to have the penalty abated. Taxpayers who also technically live outside of a disaster area could still qualify for relief if their tax records are located in such an area. Workers who are assisting with storm-related relief activities may also be eligible for tax relief.

Speak with an Experienced Nationwide Tax Lawyer 

If you live or work in Connecticut and were affected by the recent storms in the area, you may be wondering what your next steps will be come tax season. Fortunately, you don’t have to grapple with these difficulties alone, but could benefit from the help of CPA, former FBI Special Agent, and experienced Florida and nationwide tax lawyer Ronald Cutler, P.A. Call us at 386-490-9949 to set up a free, one-on-one consultation today.

Sources: 

irs.gov/newsroom/irs-connecticut-taxpayers-impacted-by-storms-qualify-for-tax-relief-various-deadlines-postponed-to-june-17

fox61.com/article/weather/severe-weather/bozrah-dam-was-states-radar-being-deficient-neglected/520-c327e3c4-2793-4938-8e56-cbddad3b8052