By: Jim Lewis, CPA, PFS, CFP®
The IRS announced on Friday, January 22, 2016 that the Federal Emergency Management Agency (FEMA) declared 33 Missouri counties disaster areas after the December storms. This means areas affected by flooding will be eligible for tax relief, including the filing and payment of income taxes, quarterly payroll and excise taxes, and estimated tax payments.
The Missouri counties included in the disaster declaration are as follows: Barry, Barton, Camden, Cape Girardeau, Cole, Crawford, Franklin, Gasconade, Greene, Hickory, Jasper, Jefferson, Laclede, Lawrence, Lincoln, Maries, McDonald, Morgan, Newton, Osage, Phelps, Polk, Pulaski, Scott, St. Charles, St. Francois, St. Louis, Ste. Genevieve, Stone, Taney, Texas, Webster, and Wright. Additional counties could potentially be added as FEMA continues to assess storm damages.
Based on KPM’s experience with the IRS related to deadline extensions for declared disaster areas, it is possible taxpayers who file their returns or pay their taxes after April 18th and before May 16th will receive penalty notices from the IRS and the Missouri Department of Revenue. The penalties assessed could include late filing and/or late payment charges. Typically, these notices are incorrect, but they do have to be resolved in a timely manner. If you receive a notice, please contact KPM to assist you with this process.
We will work with individuals and businesses that have been affected by storm damage to complete and file their returns by May 16, 2016. However, if you, your family, or your business were NOT affected by the storms, we strongly recommend that you file your returns by the standard due date of April 18, 2016 to avoid unnecessary notices or issues with tax regulators.
We will continue to provide additional information as we receive it. If you have any questions, please contact your KPM tax advisor.