IRS announces tax relief for victims of winter storm, snowstorm and flooding

SIOUX FALLS — Victims of the severe storms, tornadoes, straight-line winds and flooding that began on March 13, 2019 in South Dakota may qualify for tax relief from the Internal Revenue Service.

The President has declared that a major disaster occurred in the State of South Dakota. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in certain areas will receive tax relief.

Individuals and households who reside or have a business in Bennett, Bon Homme, Charles Mix, Dewey, Hutchinson, Jackson, Mellette, Minnehaha, Oglala Lakota, Todd, Yankton, Ziebach counties, the Cheyenne River Sioux Reservation, the Pine Ridge Reservation and the Rosebud Reservation may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after March 13, 2019 and before July 15, 2019, are granted additional time to file through July 15, 2019. This includes the quarterly estimated income tax payment due on June 17, 2019.

In addition, penalties on payroll and excise tax deposits due on or after March 13, 2019, and before March 28, 2019, will be abated as long as the tax deposits were made by March 28, 2019.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year. See Publication 547 for details.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684, Casualties and Thefts and its Instructions.

Affected taxpayers claiming the disaster loss on a 2018 or 2019 return should put the Disaster Designation, “South Dakota, Winter Storm, Snowstorm and Flooding” at the top of the form so that the IRS can expedite the processing of the refund. Be sure to include the disaster declaration number, FEMA 4440, on any return. See Publication 547 for details.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation “South Dakota, Winter Storm, Snowstorm and Flooding” in red ink at the top of Form 4506Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-829-3676. The IRS toll-free number for general tax questions is 800-829-1040.

Categories: Local News, South Dakota News

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