IRS providing tax relief for victims of recent flooding in Louisiana

Widespread flooding in Baton Rouge

BATON ROUGE, La. (BRPROUD) – Were you affected by the flooding that took place last month?

If so, the IRS is giving you a reprieve of sorts with regards to filing your taxes.

According to the Internal Revenue Service, ” Victims of severe storms and flooding that began May 17, 2021 now have until Aug. 16, 2021, to file various individual and business tax returns and make tax payments.”

Certain parishes in the state are being given tax relief and they are listed below:

  • Ascension,
  • Calcasieu
  • East Baton Rouge
  • Iberville
  • Lafayette

The tax relief applies to individuals, households and business owners who dealt with flooding last month.

If you live in one of the five parishes mentioned above, the IRS is providing details about the filing of your taxes:

Covered Disaster Area

The localities listed above constitute a covered disaster area for purposes of Treas. Reg. §301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Under section 7508A, the IRS gives affected taxpayers until Aug. 16,2021 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after May 17, 2021 and before Aug. 16, 2021.

Affected taxpayers that have an estimated income tax payment originally due on or after May 17, 2021, and before Aug. 16, 2021 are postponed through Aug. 16,2021 will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before Aug. 16, 2021.

The IRS also gives affected taxpayers until Aug. 16, 2021 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (Dec. 10, 2018), that are due to be performed on or after May 17, 2021 and before Aug. 16, 2021 are postponed through Aug. 16, 2021.

This relief also includes the filing of Form 5500 series returns that were required to be filed on or after May 17, 2021, and before Aug. 16, 2021 are postponed through Aug. 16, 2021 in the manner described in section 8 of Rev. Proc. 2018-58. The relief described in section 17 of Rev. Proc. 2018-58, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

Unless an act is specifically listed in Rev. Proc. 2018-58, 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 May 17, 2021 and before June 1, 2021, will be abated as long as the tax deposits were made by June 1, 2021

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year. See Publication 547 for details.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684, Casualties and Thefts and its Instructions.

Affected taxpayers claiming the disaster loss on a 2020 return should put the Disaster Designation, “Louisiana Severe Storms and Flooding” in bold letters at the top of the form. Be sure to include the disaster declaration number, FEMA 4606-DR, on any return. See Publication 547 for details.

Other Relief

The IRS will waive the usual fees and requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation “Louisiana Severe Storms and Flooding” 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.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website,

If you have any questions that were not answered above, call the IRS disaster hotline at 866-562-5227.

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