Vermont Flooding Victims Eligible for Tax Relief and Extended DeadlinesPublished:
On July 13th, 2023, the IRS released tax relief effective July 9th for residents and businesses impacted by severe flooding in 14 counties in the state of Vermont. The current list of eligible counties is available on their disaster relief page.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record that is located in one of those disaster areas. If you were affected in some way, but do not have an address in one of those zones, you must call the IRS to claim your eligibility.
What are the Qualifications for Relief and Extensions?
Individuals and businesses that had valid 2022 filing extensions have now an extra few months to file: November 15th is the new date. Payments that were due on returns prior to july 9th, however, are not eligible for any type of relief. If you have not yet paid, you will be penalized.
However, quarterly estimated income tax payments due for this year have also been extended from September 15th to November 15th. If you do have the funds, it is recommended to pay now, anyway.
Quarterly payroll and excise tax returns have been extended from July 31st and October 31st are also eligible for extensions.
If you are eligible for extensions, but receive a penalty letter or notice, call the number on the notice and make a claim for the penalty to be abated.
Finally, individuals and businesses in a federally declared disaster area that suffered uninsured or unreimbursed disaster-related losses may claim those losses on their tax returns, either for 2022 or 2023 depending on your filing status.
Be sure to write the FEMA declaration number 3595-EM on any return claiming disaster losses, and review the IRS Publication 547 for further details.