On September 21, 2020, the IRS announced that state residents who were victims of Hurricane Sally are eligible for certain tax relief. Under AL-2020-02, affected taxpayers will have until January 15, 2021, to file various individual and business tax returns and make tax payments.
The announcement followed the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency. Taxpayers who reside or have a business in Baldwin, Escambia, and Mobile counties, as well as any other counties added later to the disaster area, qualify for the relief.
Accordingly, certain deadlines falling on or after September 14, 2020, and before January 15, 2021, are postponed through January 15, 2021. This includes individual and business tax filers that had a valid extension to file their 2019 return due to run out on October 15, 2020. However, because tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief.
The January 15, 2021, deadline applies to the third quarter estimated tax payment due on September 15. It also applies to the quarterly payroll and excise tax returns normally due on November 2. Additionally, the relief extends to the filing of Form 5500 series returns that were due on or after September 14, 2020, and before January 15, 2021.
Affected taxpayers should refer to Revenue Procedure 2018-58, which specifies the scope of the available relief, for further information. The postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits. However, penalties on deposits due on or after September 14 and before September 29 will be abated as long as the deposits are made by September 29, 2020.
Impacted employers should be aware of the potential relief and may want to consult with their tax advisors for further information.
IRS Announcement »
Rev. Proc. 2018-58 »