IRS provides tax relief to hurricane victims in multiple states.

The Internal Revenue Service (IRS) has announced a tax relief package for​ individuals and businesses in Maine ​and Massachusetts who are grappling with the aftermath of Hurricane ‌Lee.

Taxpayers residing or operating businesses in all 16 counties in Maine and all 14 counties in Massachusetts now have until Feb. 15,​ 2024, to file various federal individual and business tax returns, and make tax payments,​ the IRS said in a statement.

The IRS has provided a tax relief package for individuals and businesses in Maine and Massachusetts affected by Hurricane Lee. Residents and businesses in all counties of ‍both states now have until Feb. 15, 2024,⁢ to file their ​federal tax returns and make payments. This relief comes after a disaster declaration by FEMA for Maine and‌ Massachusetts due to the destructive impact of Hurricane ⁣Lee.

The tax relief measures postpone various tax filing⁤ and payment ​deadlines ‌that occur between Sept. 15 and Feb. 15 next year.

Various Deadlines ⁣Extended

Those who were affected by Hurricane Lee⁣ in Maine and Massachusetts who had a valid extension to file their 2022 returns (initially ⁢due to run out ⁣on Oct. ‌16) will now‌ have until Feb.⁢ 15, 2024,‌ to file their ​returns.

The tax relief measures ⁤extend deadlines for filing and payment of taxes between Sept. 15 and Feb. 15. Individuals in Maine and Massachusetts ​affected ⁣by Hurricane Lee, who had an extension to file their 2022 returns, now have until Feb. 15, 2024, to submit their‌ returns.

This extension applies to filing only and not to⁢ tax payments, as tax payments related ‍to these 2022 returns were originally ⁤due on April 18 this year.

Please note ⁤that this extension only applies to filing tax returns and not to tax payments. The original deadline for tax payments related to these 2022 returns was April ‌18 of this year.

Quarterly estimated income tax payments normally due on Sept. 15, 2023, and Jan. 16, 2024, have been extended by the IRS’s action to Feb. 15, 2024.

Also, quarterly payroll and excise tax returns typically due on Oct. 31, 2023, and Jan. ⁢31, 2024, have also been granted an extension, with the new deadline set for Feb. 15, 2024.

Several business entities will benefit from this relief, including calendar-year partnerships and S corporations whose 2022 extensions⁤ ran out ⁤on Sept. 15, as well as calendar-year corporations whose 2022 extensions run out on Oct. 16. Additionally, calendar-year tax-exempt organizations whose extensions run ‍out on Nov. 15, will also have until Feb. ‍15, 2024, to file their returns.

The IRS has extended the deadlines for‌ quarterly estimated income tax payments due on Sept.⁤ 15, 2023, and Jan. 16, 2024, to Feb. 15, 2024. The deadlines for quarterly payroll and​ excise tax ⁣returns, originally set for Oct. 31, 2023, and Jan. 31, 2024, have also been extended to Feb. 15, 2024. Various business entities, including partnerships, S corporations, and tax-exempt organizations, will benefit from this relief.

Penalties for the failure to make payroll and excise tax ‍deposits⁣ due on or after Sept. 15 and before Oct.‍ 2 will be abated, provided the deposits ⁣are made by Oct. 2.

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.

If payroll and excise tax deposits due between Sept. 15 and Oct. 2 are not made on time, penalties will be waived if the deposits are made by Oct.​ 2. Taxpayers in the disaster area will receive automatic relief from filing and penalties and‍ do not​ need to contact the IRS⁣ separately. However, if an affected taxpayer does not have an IRS address in the disaster area, they may receive penalty notices. ⁤In ‍such cases, they should call the number on the notice to have the penalty waived.

Taxpayers living outside the disaster area but who⁢ have records​ necessary to meet a deadline during‌ the postponement period located in the affected area are also eligible for⁢ relief. Such individuals should contact the IRS directly for clarification regarding their filing circumstances, the tax agency‌ said.

More Tax Relief Measures

The IRS also said in its Sept.⁣ 25 notice that individuals in federally declared disaster areas who suffered uninsured or unreimbursed disaster-related losses can choose to claim these losses on either the return for the‌ year the loss occurred (2023), or the return for the prior year (2022).

Taxpayers residing outside ‌the disaster area but with records needed to meet a deadline during the postponement period in the affected​ area can also receive relief. ‍They⁣ should contact the IRS directly for clarification on their filing situation. Additionally, individuals in federally declared disaster areas who experienced uninsured‌ or unreimbursed losses can choose to claim these losses ⁢on either their 2023 or 2022 tax return.

In general, disaster relief payments are​ excluded⁤ from gross income. This means that affected taxpayers can exclude ⁢from their gross ⁣income amounts received from a government agency for reasonable and necessary personal, family, living, or funeral expenses, as well as for the repair or rehabilitation of their home,⁣ or for the repair or replacement of ‌its contents.

Disaster relief payments are typically not included in ⁣gross‍ income. This allows affected taxpayers to exclude amounts received‌ from ‍a government agency for personal, family, living, or funeral expenses, as well ‍as for home repair or rehabilitation, or replacement of its contents.

Also, additional relief may be available to affected taxpayers who participate in retirement plans or individual retirement arrangements (IRAs). This includes special disaster distributions that are not subject​ to the additional 10 percent early distribution ‍tax and the option ⁤to make hardship withdrawals. Specific​ rules and guidance for these options can be‍ found in each plan or IRA.

IRS to Keep Operating Even If Government Shuts Down

Political deadlock on Capitol Hill around the appropriations process could lead to a government shutdown at the end ⁢of September.

Affected taxpayers who​ have retirement plans or⁣ IRAs may be ⁣eligible for⁢ additional relief, such as special disaster distributions without the 10 percent early distribution tax and the ability ⁤to make hardship withdrawals. Detailed⁢ rules and guidance for these options‍ can be found in each ⁤plan or IRA. Furthermore, despite the possibility of a government shutdown, the IRS is expected to continue operating and collecting ‍taxes.

But even if the government shuts down, the IRS will most likely‍ continue to ⁢work, and tax enforcers will keep collecting their paychecks, according to an official.

Doreen Greenwald, president of the National Treasury Employees Union (NTEU), said during a press call on Sept. 18 that⁣ the IRS would‌ probably‍ use funds from the Inflation Reduction Act to remain fully operational in case of⁤ a shutdown and continue to operate without ⁢interruption.

Even in the event of a government shutdown, the IRS is expected to continue functioning and tax​ enforcers will still receive their paychecks. Doreen Greenwald, president ⁣of the National ⁣Treasury Employees Union (NTEU), stated that the​ IRS would likely utilize funds from the Inflation Reduction Act‍ to ensure uninterrupted operations during a shutdown.

Ms. Greenwald added that the NTEU is still waiting for a final plan from the Treasury Department, while adding that ​she hopes lawmakers will strike a deal to avert a shutdown.

Last ⁤year’s‌ $1.7 trillion ‍omnibus funding bill is keeping the government running until ⁢the end of fiscal year 2023 ‍on Sept. 30.

Ms. Greenwald mentioned that the NTEU is awaiting a final plan from the Treasury Department and expressed hope that lawmakers will⁢ reach an agreement to prevent a shutdown. It’s worth noting that the government is currently funded by a $1.7 trillion omnibus bill, ​which will sustain operations until ​the end of the fiscal year on Sept. 30, 2023.

Now, Congress faces an appropriations battle and must‍ approve⁢ a bevy of ⁢major spending bills by Sept. 30.

Congress is currently confronted⁢ with an appropriations battle ⁣and must‌ pass numerous ​significant spending bills before Sept. 30.

If House‌ and Senate members fail to agree on any of the 11 bills, the government would technically be forced to shut‍ down.

Contentious issues⁢ like illegal immigration, securing​ the southern border, and funding for Ukraine are still on‌ the table as lawmakers try to hammer out a compromise.

If House and ⁢Senate members are unable to reach an agreement on any of the‍ 11 bills, a government ⁣shutdown ‍would become a possibility. Contentious matters such as illegal immigration, border⁤ security, and​ funding for Ukraine remain unresolved as lawmakers work towards a compromise.

How does the government shutdown affect the IRS’s ability⁤ to collect taxes?

Government shutdown, the IRS‌ is expected ⁢to continue working ⁤and collecting taxes. According to Doreen Greenwald, president of the National Treasury ‍Employees Union‌ (NTEU), the IRS would likely utilize funds from the ⁢Inflation Reduction⁤ Act to remain fully operational and continue their ⁢operations without interruption.

In conclusion, the IRS has ⁣implemented‍ a tax relief package for‍ individuals⁤ and businesses in Maine and Massachusetts affected by Hurricane Lee. This relief allows ⁣taxpayers in all counties of both states ⁤until Feb.⁣ 15, 2024, to ⁣file their federal tax returns‍ and make payments. Various deadlines for​ filing and paying taxes between Sept. 15 and Feb. 15 have⁤ been extended. Taxpayers located

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