Tax Relief for Hurricane Isaac Victims

It comes as no surprise following the devastating rains and flooding that resulted in the Gulf Coast from Hurricane Isaac that the IRS has granted tax relief. The relief is in the form of extensions for various tax filings and other tax-related duties. Affected individuals and businesses have until January 11, 2013, to file 2011 returns that were on extension, which includes corporations and other businesses that would normally have filed by September 17, 2012, and individuals who would have filed by October 15, 2012.

The IRS said it will also abate any interest and late-payment or late-filing penalty that would otherwise apply to these returns. In addition, for businesses, the IRS will waive failure-to-deposit penalties for federal employment and excise tax deposits normally due on or after August 26, 2012, and before September 10, 2012, if the deposits are made by September 10, 2012.

Note: So far this relief applies only to victims within Louisiana (Ascension, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist, and St. Tammany parishes) and Mississippi (Hancock, Harrison, Jackson, and Pearl counties), but the IRS is expected to extend this relief soon to other storm-related victims.