IRS Tax Relief for Hurricane Sally Victims Disaster Daphne, AL and Fairhope, AL

Were you affected by Hurricane Sally?

If so, we hope you are doing OK, and we are very sorry for your loss. The last thing you want to do is think about taxes at a time like this, but the good news is that the IRS can be very helpful to victims of a disaster.

The IRS provides relief for qualifying taxpayers that were affected by Hurricane Sally. This hurricane made landfall in mid-September, 2020 near Gulf Shores, AL as a Category 2 storm.

Who Is Eligible?

Individuals and households who reside or have a business in Baldwin, Escambia, and Mobile counties qualify for tax relief. There are additional rules for who qualifies, so please check with us for exceptions and additions to this list.

IRS Deadline Extensions

Some of the IRS relief is granted in the form of deadline extensions. Individuals, self-employed persons, and business taxpayers are allowed until January 15, 2021 to file the following returns with a valid extension that are normally due between September 14, 2020 and January 15, 2021:

  • Individual tax returns
  • Corporate tax returns
  • Partnership tax returns
  • S corporation tax returns
  • Estate and trust tax returns
  • Annual information returns of tax-exempt organizations
  • Employment and certain excise tax returns

Returns that were originally due on July 15, 2020 and extended to October 15, 2020, do not get an extension of time to pay. This is because the original payment deadline of July 15, 2020 fell before Hurricane Sally.

ALDOR Deadline Extensions

The Alabama Department of Revenue has also granted a January 15, 2021 extension deadline to taxpayers related to the following returns and topics:

  • Sales and Use Tax
  • Individual Income Tax
  • Corporate Income Tax
  • Pass-through Entities
  • Business Privilege Tax
  • Withholding Tax

Payment Extensions

IRS tax payment deadlines are extended to January 15, 2021 for:

  • Third quarter estimated tax payment due on September 15, 2020.
  • Payroll and excise tax deposits normally due on November 2, 2020

Tax Relief for Disaster Losses

Another way that the IRS grants relief is through tax breaks on disaster losses. If insurance did not cover your losses and you have unreimbursed disaster-related losses, you may be able to get a tax break. There is a form that can be completed to declare Casualties and Thefts to claim any eligible tax break. It needs to be completed in a special way, and that’s where we can help.

It’s also a great idea to start keeping a spreadsheet of your losses so that you can start building your documentation. We can help you with the recordkeeping you need so that you can pay as little taxes as legally permitted.

You can claim your loss this year or next year. We can help you determine which might be most advantageous. And if you’ve already filed your 2019 taxes and want to claim your disaster losses this year, we can help you file an amended return.

Help with Lost Documents

A final way the IRS can help is to provide assistance with reconstructing records that were destroyed in the hurricane.  You can request copies of your returns from the IRS at no charge. You should put the assigned Disaster Designation “Alabama – Hurricane Sally” in bold letters at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Don’t Wait

As soon as you can get back on your feet, it’s a good idea to talk to a tax professional if you feel you might be eligible for these disaster benefits. We can help you get started, and if a refund is in order, it’s always a good idea to get that back as soon as possible.

Also, if you receive an IRS letter between now and January 15, 2021, you should not ignore it. Those need to be answered, even if you don’t feel the IRS letter is correct.

Complimentary Consultation

We know you have a lot on your plate right now, so it just makes sense to get a little help this year with your tax requirements.  To set up a no-cost, no-obligation consultation, give us a call or email us today.