News & Tax Alerts: Tax Alerts – State

Reminder: ZIP Codes in Livingston & Orleans and IRS Relief Deadlines for Feb. 7 Tornadoes

Wednesday, April 12, 2017   (0 Comments)
Posted by: Natasha Joseph

State

The Louisiana Department of Revenue is granting filing and payment extensions to taxpayers in areas declared federal "disaster areas” following severe storms, tornadoes, and straight-line winds in South Louisiana on February 7, 2017.

The filing and payment extensions apply only to those taxpayers whose homes, principal places of business or critical tax records are located in the following ZIP codes in Livingston and Orleans parishes: 70447, 70454, 70462, 70706, 70785, 70126, 70127, 70128 and 70129. Additional areas declared federal disaster areas due to the severe weather on February 7, 2017, will be considered for the same relief.

For tax returns and payments submitted by the extended deadline, the Department of Revenue will waive any late filing penalties, late payment penalties and interest that would otherwise apply. Any return or amount on which penalty or interest began accruing before February 7, 2017, will not be eligible for this relief.

More information in RIB 17-007 Tax Relief to Individuals and Businesses Affected by South Louisiana Severe Storms, Tornadoes, and Straight-Line Winds Return Filing and Tax Payment Deadlines Extended.

Federal

Victims of the severe storms, tornadoes, and straight-line winds that took place beginning on February 7, 2017 in parts of Louisiana, may qualify for tax relief from the Internal Revenue Service.

The President has declared that a major disaster exists in the State of Louisiana. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in Louisiana will receive tax relief.

Individuals who reside or have a business in Livingston or Orleans parishes may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after February 7, 2017, and before June 30, 2017, are granted additional time to file through June 30, 2017. This includes 2016 income tax returns normally due on April 18. It also includes the April 18 deadlines for making quarterly estimated tax payments. Affected taxpayers that have an estimated income tax payment originally due on or after February 7, 2017, and before June 30, 2017, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before June 30, 2017.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

Covered Disaster Area

The parishes listed above constitutes a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed in LA-2017-01.

LA-2017-01 Tax Relief for Victims of Severe Storms, Tornadoes and Straight-line Winds in Louisiana.