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Writer's pictureAllison L. Reynolds, CPA

IRS announces tax relief for Tennessee victims of severe storms, tornadoes and flooding


It has been an eventful week here in the Middle Tennessee area. As you may have experienced first-hand or possibly just saw it on the news, there has been major damage in the Middle Tennessee area due to tornadoes that touched down in the early morning hours of 3/3/20.


Our office was about 7 miles south of the storm path and my family was unscathed, but in the last week I have discovered that several of my clients were adversely affected, some even experiencing a total loss of property. As we can all imagine this is a devastating time for a small business or family, and they need our prayers, love and support. It is so wonderful to see our community come together to serve each other, and I am so proud of the work that is being done in our state.


President Trump visited our state Friday, and as expected, declared Davidson, Putnam, and Wilson counties as a major disaster area. As a result, victims of the storms that began on March 3, 2020 in Tennessee may qualify for tax relief from the IRS. Those effected will also be eligible for individual assistance issued by FEMA. The declaration permits the IRS to postpone deadlines for taxpayers who reside or have a business in the disaster area. Certain filing deadlines falling on or after March 3, 2020, and before July 15, 2020 are granted additional time to file through July 15, 2020. 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.


The relief for residents or businesses in Davidson, Wilson, and Putnam counties applies to most tax returns, including individual, corporate, and estate and trust returns, partnership returns, and S corporation returns. This includes the Form 1040 due April 15th, the quarterly estimated income tax payment due on April 15th and June 15th for tax year 2020, and to the quarterly payroll and excise tax returns due on April 30th. It also applies to nonprofit organizations, operating on a calendar-year basis, that have 2019 return due on May 15th, 2020. Taxpayers will also have until July 15th to make their 2019 IRA contributions. Penalties on tax deposits due after March 3, 2020 and before March 18, 2020 will be abated as long as you make the deposit by March 18th.



If you experienced damage, please reach out to me so I can guide you on what you need to do to potentially claim a casualty loss on your tax filings.

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