January 28, 2022

Volume XII, Number 28

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Tax Relief Available to Victims of Hurricane Ida

The IRS announced victims of Hurricane Ida now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments. This relief extends to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. This includes the entire state of Louisiana, and taxpayers in certain Ida-impacted localities designated by FEMA in neighboring states, including southern Mississippi, will also receive the same filing and payment relief.

The tax relief postpones various tax filing and payment deadlines that occurred starting on Aug. 26, 2021, for Louisiana taxpayers, and Aug. 28, 2021, for certain Mississippi taxpayers. As a result of the relief, affected individuals and businesses will have until Jan. 3, 2022, to file various tax returns and pay various taxes that were originally due during this period. This means individuals and businesses, who had a valid extension to file their 2020 federal income tax returns, will now have until Jan. 3, 2022, to file their 2020 federal income tax returns. The IRS noted, however, that because tax payments related to these 2020 returns were due earlier in 2021, those payments are not eligible for this relief.

The Jan. 3, 2022, deadline also applies to quarterly estimated income tax payments due on Sept. 15, 2021, and the quarterly payroll and excise tax returns normally due on Nov. 1, 2021. It also applies to tax-exempt organizations, operating on a calendar-year basis, which had a valid extension to file their Form 990s due to run out on Nov. 15, 2021. Businesses with income tax returns on extensions also have the additional time, including, among others, calendar-year corporations whose 2020 extensions run out on Oct. 15, 2021, and calendar-year partnerships and S corporations whose 2020 extensions run out on Sept. 15, 2021.    

In addition, penalties on payroll and excise tax deposits due on or after Aug. 26, 2021, and before Sept. 10, 2021, will be abated as long as the deposits are made by Sept. 10, 2021.

While the Departments of Revenue for Louisiana and Mississippi have not made any official announcements, it is anticipated that those states will provide similar relief to taxpayers in those states.

For more information on tax relief in disaster situations, please visit the IRS website.

© 2022 Jones Walker LLPNational Law Review, Volume XI, Number 244
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About this Author

Ruddy R. Ramelli Tax Attorney Jones Walker New Orleans, LA
Partner

Ruddy Ramelli is a partner in the Tax Practice Group.


Ruddy has been practicing tax law for more than 30 years and is a board-certified tax specialist as certified by the Louisiana Board of Legal Specialization. He focuses his practice on federal and state income tax issues and the tax structuring and consequences of mergers, acquisitions, and related transactions.

Ruddy regularly represents corporations, partnerships, individuals, and other for-profit entities, and has in-depth experience in the energy and real estate industries. He works regularly with...

504.582.8206
Trevor Wilson Tax Attorney Jones Walker
Partner

Trevor Wilson is a partner in the firm's Tax & Estates Practice Group. Mr. Wilson practices in the areas of federal income taxation, business formation, tax-exempt organizations, executive compensation, estate planning and the administration of successions.

Mr. Wilson's federal income tax practice focuses on advising clients on structuring their U.S. and international business activities to minimize federal income taxation, both in the ordinary course of business operations and upon a sale or merger of the business. In addition, he advises clients on...

225-248-2122
Bill Backstrom, Tax, estates Attorney, Louisiana, Jones Walker Law FIrm
Partner

Bill Backstrom leads the firm's Tax & Estates Practice Group. His practice, for more than 30 years, has focused primarily on state and local tax matters in Louisiana and on a multistate basis. These matters include tax and business planning, utilization of tax and business incentives, audits, government relations, administrative appeals, judicial appeals, and legislative matters.

Mr. Backstrom is a Board Certified Tax Specialist as certified by the Louisiana Board of Legal Specialization. He is a frequent lecturer and author on a variety of tax topics, including all...

504.582.8228
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