IRS Provides Storm-Related Filing Extensions

By Stanley Rose February 19, 2024

The IRS recently issued a few notices explaining that it is providing additional time to file certain tax returns and make related payments of tax for those whose homes or places of business reside in specified New England counties that were impacted by storms in recent months. The counties are located in Connecticut, Maine, and Rhode Island, and the respective state revenue authorities are offering their own, somewhat similar concessions, for filings of state tax returns and making payments of related state income taxes.

Generally, the extensions allow tax returns and payments that were due in the period beginning with the date of the storm and ending in mid-June of this year to be considered timely if filed and paid by June 17, 2024.

In Connecticut, the qualifying county is New London, and includes the Mohegan Tribal Nation and Mashantucket Pequot Tribal Nation, and the extensions result from storms and flooding that began on January 10, 2024. More details can be found on the IRS and CT Department of Revenue Services websites.

Qualifying Maine counties consist of Androscoggin, Franklin, Hancock, Kennebec, Oxford, Penobscot, Piscataquis, Somerset, Waldo, and Washington, which were impacted by storms and flooding beginning on December 17, 2023. More details can be found on the IRS and Maine Revenue Services websites.

Rhode Island’s extensions apply to those in Providence County, which saw damage from storms and even tornadoes beginning on September 10, 2023. Guidance is found on IRS and Rhode Island Department of Revenue websites.

These extensions may be helpful but are intended to apply to those who truly need them, and our advice is that to the extent possible, taxpayers should consider addressing their filing and payment responsibilities by the original deadlines. This advice comes from a number of considerations.

First, in each case, the filing and payment concessions cover a broad range of requirements, but it is not open-ended. In other words, the extensions apply to specific returns and payments that are listed in the guidance. In our experience, there often are sneaky little responsibilities that seemingly should be covered by such automatic extensions, but that under scrutiny, tax authorities might believe are not covered. Certain elections may be a good example.

Also, it isn’t uncommon for a taxpayer to realize that filing requirements exist in a new jurisdiction (typically a new state), whether due to changes in the taxpayer’s situation, or rule changes that flew under the radar. You don’t want to find out in June that you missed a new filing requirement in March or April, and are now faced with a tardy return, an impatient revenue agent, and a barrage of unpleasant penalties.  These facts best come to light when the tax return is prepared comprehensively.

Perhaps you will choose to take advantage of the deferral by filing and paying later, but we strongly encourage you to observe the original deadline or at least, to the extent possible, finalize your tax returns by the original deadlines. It is only by doing that that you truly see all sixty-four squares on the tax chess board.

For more information, please contact your BNN tax service provider at 800.244.7444.