On January 22, 2016, the Internal Revenue Service (IRS) announced that Missouri storm victims will receive tax relief. This announcement followed the disaster declaration by the Federal Emergency Management Agency (FEMA) made earlier in the week. Affected taxpayers will have until May 16, 2016 to file their tax returns and pay any taxes due to the Internal Revenue Service.
Note: Although the IRS automatically provides filing and penalty relief to any taxpayer with an Internal Revenue Service address of record in the disaster area, RubinBrown does not intend to extend the filing season for our clients until May 16th unless extraordinary circumstances requires us to do so. However, many clients may want to take advantage of the extended due date for paying any balance due with their Federal return and/or remittance of their 1st quarter 2016 estimated tax payment.
In fact, we encourage you to submit your tax information to us as soon as possible. We will begin preparing your 2015 tax returns even if you do not have all of your information at this time. We would love to get a jump start on your returns! Filing early may have benefits over filing close to the deadline, which could include:
- Less stress gathering tax documents at the last minute and delivering them to us, when you would rather be outside enjoying an early spring
- Mitigating the potential impact of taxpayer identity theft and reducing the delay of any potential refunds
- More time to meet with your RubinBrown advisor in a less stressful time frame for all
The IRS said that affected taxpayers in Barry, Barton, Camden, Cape Girardeau, Cole, Crawford, Franklin, Gasconade, Greene, Hickory, Jasper, Jefferson, Laclede, Lawrence, Lincoln, Maries, McDonald, Morgan, Newton, Osage, Phelps, Polk, Pulaski, Scott, St. Charles, St. Francois, St. Louis, Ste. Genevieve, Stone, Taney, Texas, Webster and Wright counties will receive this and other special tax relief. Other locations in Missouri and other states may be added in coming days, based on damage assessments by FEMA.
The tax relief postpones various tax filing and payment deadlines that occurred starting on December 23, 2015. As a result affected individuals and businesses will have until May 16, 2016 to file their returns and pay taxes due. Therefore, 2015 income tax returns normally due in April will be due approximately a month later in May. The relief also postpones the January 15th and April 18th deadlines for making quarterly estimated tax payments. Income tax deadlines are not the only deadlines affected by this relief. Payroll and excise tax deadlines for businesses are also affected including the February 1st and May 2nd deadlines for quarterly returns.
In addition to the relief announced, the Internal Revenue Service will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside of the disaster area are required to contact the IRS.
Individuals and businesses who suffered uninsured or unreimbursed disaster related losses may choose to claim a deduction for them on the return for the year the loss occurred or the return for the prior year. Please see Publication 547 for more details on the deductibility of losses.
Should you have questions or need assistance with these calculations, please contact your RubinBrown advisor.
Any federal tax advice contained in this communication (including any attachments): (i) is intended for your use only; (ii) is based on the accuracy and completeness of the facts you have provided us; and (iii) may not be relied upon to avoid penalties.
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