IRS provides tax relief for Louisiana residents affected by saltwater intrusion.
The IRS Provides Tax Relief for Louisiana Taxpayers Impacted by Saltwater Intrusion
The Internal Revenue Service (IRS) has announced a tax relief package for taxpayers in Louisiana who were impacted by the intrusion of a mass of salty seawater from the Gulf of Mexico that has been steadily forcing its way up the Mississippi River and threatening drinking water.
The IRS said in a Sept. 29 announcement that it’s introducing tax relief measures for individuals and businesses impacted by seawater intrusion in parts of Louisiana where the Federal Emergency Management Agency (FEMA) declared a disaster.
Individuals and households that live or run a business in Jefferson, Orleans, Plaquemines, and St. Bernard parishes qualify for the relief, which covers various filing and payment deadlines.
Related Stories
- Louisiana Governor Requests Federal Emergency Declaration for Saltwater Intrusion – 9/26/2023
- Mississippi River Saltwater Intrusion Threatens Drinking Water; New Orleans Declares Emergency – 9/23/2023
President Joe Biden has approved an emergency declaration for Louisiana, which was requested by Louisiana Gov. John Bel Edwards.
“As a result of the historic drought throughout the Mississippi River Valley, the rate of freshwater flowing down the Mississippi River has been dramatically low, allowing an intrusion of saltwater from the Gulf of Mexico to make its way upriver,” Mr. Edwards said.
He said that Plaquemines Parish was already being affected by the intrusion, while other parishes—St. Bernard, Jefferson, and Orleans—are projected to be impacted over the next month.
Deadlines Extended
The IRS said that the extension—generally until Feb. 15, 2024—provides some breathing room for those struggling in the aftermath of the saltwater intrusion.
Individuals who had a valid extension to file their 2022 return, which was due to expire on Oct. 16, 2023, are now granted an extension until Feb. 15, 2024. However, the IRS noted that this extension applies only to filing and not to tax payments related to those 2022 returns, which were due on April 18, 2023.
Also, quarterly estimated income tax payments that were normally due on Jan. 16, 2024, are now also extended until Feb. 15, 2024. The same extension applies to quarterly payroll and excise tax returns, which were originally due on Oct. 31, 2023, and Jan. 31, 2024, respectively.
Calendar-year corporations with extensions expiring on Oct. 16, 2023, and calendar-year, tax-exempt organizations with extensions expiring on Nov. 15, 2023, are also eligible for this relief.
Additionally, penalties for the failure to make payroll and excise tax deposits due on or after Sept. 20, 2023, and before Oct. 5, 2023, will be abated provided the deposits are made by Oct. 5, 2023.
Affected taxpayers located within the disaster area will receive automatic filing and penalty relief and are not required to contact the IRS separately.
In unique circumstances where an affected taxpayer does not have an IRS address of record located in the disaster area, they could receive late filing or late payment penalty notices from the IRS. In such cases, taxpayers should call the number on the notice to have the penalty abated.
Salt Threatens Drinking Water Supply
Normally, freshwater flows downriver along the Mississippi River and pushes against the salty water in the Gulf of Mexico, keeping it at bay.
But historically low rainwater in the Mississippi River basin has led to a drought, undermining the river’s ability to prevent salty water from intruding—and posing a risk to drinking water supplies.
Municipalities in southeast Louisiana, including New Orleans, all get their drinking water from the Mississippi River and the saltwater wedge threatens to contaminate the freshwater intake.
In some areas, the increased salinity from the saltwater intrusion is forecast to exceed the Environmental Protection Agency’s (EPA) maximum standard of 250 mg/L, ”impacting public water systems and introducing the risk of corrosion to water distribution systems, machinery, and appliances,” Mr. Edwards’s office said.
According to the EPA, high concentrations of salt consumption may cause people to develop nausea, vomiting, inflammation of the gastrointestinal tract, thirst, muscular twitching, convulsions, and “possibly death.”
Mr. Edwards has urged residents not to panic, noting that various efforts were underway to mitigate the impacts of the saltwater wedge.
The U.S. Army Corps is working to heighten an existing underwater levee used to block or slow the incursion, while drinking water is being brought in by barge to affected residents in parts of the state.
Initially, there were plans to barge in 15 million gallons of water over the course of the first week of deliveries. Plans are to increase that to as much as 36 million gallons per day.
Mr. Edwards also said last week there are operations to deliver bulk bottled water and that reverse osmosis water purification units were being brought online.
What tax relief measures has the IRS implemented for individuals and businesses in the affected parishes
The river’s freshwater flow. This, in turn, has allowed the saltwater from the Gulf of Mexico to intrude and move upstream, posing a threat to the drinking water supply in Louisiana.
The intrusion of saltwater has already affected Plaquemines Parish, and other parishes such as St. Bernard, Jefferson, and Orleans are projected to be impacted in the coming month. Recognizing the urgency of the situation, Louisiana Governor John Bel Edwards requested a federal emergency declaration, which was subsequently approved by President Joe Biden.
IRS Tax Relief Measures
In response to the saltwater intrusion and the resulting disaster declaration, the IRS has implemented tax relief measures for individuals and businesses in the affected parishes. This relief package aims to alleviate the financial burden on taxpayers who have been impacted by the intrusion.
Under the tax relief package, individuals and households in Jefferson, Orleans, Plaquemines, and St. Bernard parishes qualify for various filing and payment deadline extensions. Individuals who had a valid extension to file their 2022 return, which was due to expire on October 16, 2023, are now granted an extension until February 15, 2024. However, it’s important to note that this extension applies only to filing and not to tax payments related to those 2022 returns, which were due on April 18, 2023.
The relief also applies to quarterly estimated income tax payments, which were normally due on January 16, 2024. These payments are now extended until February 15, 2024. Furthermore, quarterly payroll and excise tax returns, originally due on October 31, 2023, and January 31, 2024, respectively, are also eligible for the deadline extension.
Calendar-year corporations with extensions expiring on October 16, 2023, and calendar-year tax-exempt organizations with extensions expiring on November 15, 2023, are also included in the tax relief package. Additionally, penalties for the failure to make payroll and excise tax deposits due between September 20, 2023, and October 5, 2023, will be abated if the deposits are made by October 5, 2023.
It is important to note that affected taxpayers located within the disaster area will receive automatic filing and penalty relief, and they are not required to contact the IRS separately. However, in unique circumstances where an affected taxpayer does not have an IRS address of record located in the disaster area, they may receive late filing or late payment penalty notices from the IRS. In such cases, taxpayers should call the number displayed on the notice to have the penalty abated.
Protecting the Drinking Water Supply
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...