Due to the recent devastation brought on by hurricanes Harvey and Irma, the IRS is granting relief to taxpayers in designated areas of Texas, Florida, Puerto Rico and the Virgin Islands. According to the IRS website, taxpayers in affected areas will have until January 31, 2018, to pay: 

• Some of their 2017 tax estimates and business taxes. This includes the September 15, 2017, and January 16, 2018, deadlines for making quarterly estimate payments.

• Their 2016 business income tax returns previously extended to September 15, 2017.

• Their 2016 individual income tax returns previously extended to October 16, 2017. 

Note that existing 2016 tax year balances due on April 18, 2016, are not included in this relief. 
 
Other key tax deadlines affected: 

• The October 31 deadline for quarterly payroll and excise tax returns.

• The IRS is waiving late-deposit penalties for federal payroll and excise tax deposits normally due during the first 15 days of the disaster period.

• The Financial Crimes Enforcement Network (FinCEN) is extending the deadline to file a Report of Foreign Bank and Financial Accounts (FBAR) report for the 2016 calendar year to January 31, 2018. The report would have been due October 15, 2017. 

The federal tax relief will be available to anyone in an area designated by the Federal Emergency Management Agency (FEMA). Additional areas may be added to the list. Find the most updated list of disaster relief areas and tax-related details at www.irs.gov/newsroom/tax-relief-in-disaster-situations. 

9/21/17 Update: Some states are beginning to respond to the hurricane devastation as well, following suit with the IRS. Delaware, Georgia and Ohio have already announced extensions for victims. Talk with a state and local tax specialist to understand your state’s position.

Please contact a member of your service team for further discussion.

Cohen & Company is not rendering legal, accounting or other professional advice. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts and circumstances.