The Internal Revenue Service (IRS) has announced that storm victims in Mississippi now have until July 31, 2023, to file various federal individual and business tax returns and make tax payments. This extension comes in response to the devastating tornadoes and severe storms that occurred on March 24 and 25.
The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA) as a disaster zone, including Carroll, Humphreys, Monroe, and Sharkey counties. Additional areas added to the disaster list will also qualify for the same relief, with the current list of eligible localities available on the IRS disaster relief page.
Affected individuals and businesses will have until July 31 to file returns and pay any taxes initially due during this period, including 2022 individual income tax returns and various business returns due on April 18. Eligible taxpayers will also have until July 31 to make 2022 contributions to their IRAs and health savings accounts, as well as quarterly estimated tax payments, payroll and excise tax returns.
Those requiring more time to file beyond the July 31 deadline are urged to request an extension electronically, using IRS Free File or IRS Direct Pay, before the original April 18 deadline. More information on extensions can be found on the IRS website.
The IRS automatically provides filing and penalty relief to taxpayers with an address of record located in the disaster area, meaning they do not need to contact the agency to receive this relief. If an affected taxpayer receives a late filing or late payment penalty notice for a deadline falling within the postponement period, they should call the number on the notice to have the penalty abated.
Taxpayers living outside the disaster area who have records necessary to meet a deadline within the postponement period located in the affected area can also qualify for relief. To receive assistance, these taxpayers need to contact the IRS at 866-562-5227.
In addition, individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either their 2023 return or the prior year’s return. When claiming a loss, be sure to write the FEMA declaration number – 4697-DR – on the return. More information on disaster-related losses can be found in IRS Publication 547.
The tax relief is part of a coordinated federal response to the damage caused by these storms, based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.