The Internal Revenue Service has decided to offer tax help and penalty abatement help, to victims of Hurricane Harvey, as long as they were in the designated FEMA disaster zone. As the most powerfull rainstorm to ever land on American soil recedes into memory, the agony of a long, drawn out recovery will slowly begin. Tens of thousands of individuals, families, and business owners lives have been uprooted and impacted, and the road to recovery will take time. Congress did their part, passing a nearly $8 billion tax relief measure, designed to speed money for reconstruction and supplies.
The American people did their part as well. As millions of dollars in donations, in the form of food, medical supplies, bedding and furniture, came in from all parts of the country. Financial donations were set up across the country, wiht both individuals, and businesses donating millions of dollars nationwide. Churches became donation centers, as did local gyms, and community gathering locations. It was even reported that during the hieght of the crisis, an army of individuals with boats were going up and down streets, looking to help rescue people trapped byflood waters.
The Internal Revenue Service announced on August 28th, 2017, in Internal Revenue news publication IR-2017-135, that individuals and business owners impacted by the storm will not have to file tax returns until January 31st, 2018. This also applies to making self employedment estimated payments. The IRS is offering this and penelty abatement help for those who live in a FEMA designated area. If you need tax help, you may want to refer to the IRS publication for that tax help. The penalty abatement information is also available in that same publication.
To establish a case for penalty abatement, you must show one of several things. A typical situation eligible for penalty abatement is osmething that is out of your control, such as a natural disaster (Hurricane Harvery), inability to obtain records, death or serious illness, or anther reason that would establish that you used all ordinary business care to file or pay on time.
We have witnessed over 28 years penalty abatement cases that went through, that probably should not have, so if you have questions, please feel free to call and ask for help.