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Kentucky Storm and Flooding Victims Eligible for Tax Relief Through November 15

Kentucky storm and flooding victims have until Nov. 15, 2022, to file for certain tax relief according to the Internal Revenue Service (IRS) as of Aug. 2, 2022. Relief is available when filing certain individual and business tax returns and making tax payments the agency says.

The just-announced relief postpones certain tax filing and payment deadlines starting July 26, 2022. Now, affected individuals and businesses will have until November 15, 2022, to file returns and pay taxes originally due during this period.

Key Takeaways

  • Residents of certain Kentucky counties now have until Nov. 15, 2022, to file and pay certain taxes.
  • The list of current eligible localities is available on the IRS disaster relief page.
  • Eligible taxpayers who filed for an extension until Oct. 17, 2022, now have until Nov. 15, 2022, to file their taxes.
  • There is, however, no extension to pay taxes due April 18, 2022.
  • The extension does apply to quarterly estimated taxes originally due Sept. 15, 2022.
  • Filing and payment relief is automatic for those who live in a declared disaster area.

Eligible Locations

Areas designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance are eligible for tax relief. Currently, households and individuals in the following counties are eligible for relief:

  • Breathitt
  • Clay
  • Floyd
  • Johnson
  • Knott
  • Leslie
  • Letcher
  • Magoffin
  • Martin
  • Owsley
  • Perry
  • Pike
  • Wolfe
  • Areas added later will be eligible for the same relief with the same deadline. Check the IRS disaster relief page for the most up-to-date list.

Available Relief

The tax relief announced today postpones tax filing and payment deadlines that would have applied starting July 26, 2022. Eligible taxpayers in designated areas have until Nov. 15, 2022, to file and pay. This includes:

  • Individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022.
  • Taxpayers who owe a quarterly estimated income tax payment due on September 15, 2022
  • Those with quarterly payroll and excise tax returns normally due on August 1 and October 31.
  • Businesses with an original or extended due date including calendar-year partnerships and S corporations whose 2021 extensions run out on September 15, 2022, and calendar-year corporations whose 2021 extensions run out on October 17, 2022.

In addition, anyone owing a penalty on payroll and excise tax deposits due on or after July 26 and before August 10, will be abated as long as the deposits are made by August 10, 2022.

The Disaster Assistance and Emergency Relief for Individuals and Businesses page has details on other tax-related actions that qualify for an extension.

Although the filing deadline for those who requested an extension until Oct. 17 on their 2021 return is now Nov. 15, tax payments related to those returns re not eligible for this relief.

Relief Is Automatic for Most

The IRS will automatically provide relief to taxpayers with an IRS address inside the disaster area. These taxpayers do not need to contact the agency or file paperwork to obtain tax relief. Any taxpayer who receives a late filing or payment penalty notice they believe to be in error should call the number on the notice to have the penalty abated.

Taxpayers who live outside the designated disaster areas but with records located in one of the designated areas should contact the agency at 866-562-5227 to request assistance. This includes workers involved in relief activities who are affiliated with a recognized government or philanthropic organization.

Taxpayers With Disaster Losses

Individuals and businesses in a federally declared disaster area who experience uninsured or unreimbursed disaster-related losses can claim the loss:

  • on their tax return for the year the loss occurred (2022, filed in 2023); or
  • on their return for the prior year (2021) by filing an amendment to that return.

Taxpayers are advised to write the FEMA declaration number – DR-4663-KY − on any return claiming a loss. IRS Publication 547 provides additional details.

The Bottom Line

This just-announced tax relief is part of a coordinated federal response to the damage caused by recent storms in Kentucky and based on damage assessments by FEMA. The extension of time to file and, in some cases pay, until Nov. 15, 2022, takes into account the need for taxpayers and businesses recover financially from this disaster.

Based on a taxpayer’s listed IRS address, most extensions to file and pay are automatic. Taxpayers who receive what they believe to be an erroneous notice or penalty should contact the IRS for assistance. Disaster relief is an ongoing and evolving process. More information on disaster recovery can be found at disasterassistance.gov.

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