The Internal Revenue Service announced on Monday that those affected by the severe weather in Indiana from March 31 to April 1 now have until July 31 to file various tax returns and to make tax payments.
The Federal Emergency Management Agency filed a disaster declaration on April 15, which was approved by President Biden on the same day. The declaration makes federal funding and federal disaster assistance available to those in the counties affected by the severe storms: Allen, Benton, Clinton, Grant, Howard, Johnson, Lake, Monroe, Morgan, Owen, Sullivan and White.
Individuals, households and businesses in those counties qualify for tax relief, according to the IRS press release.
The IRS will postpone some tax filing and payment deadlines until July 31, including 2022 individual income returns and various business tax returns originally due April 18, according to the press release.
The extended deadline also applies to any payment originally due March 31-July 31, including quarterly estimated tax payments, quarterly payroll and excise tax returns, according to the IRS press release. Eligible taxpayers can make 2022 contributions to their individual retirement accounts and health savings accounts until the extended date.
[Related: Biden approves Indiana disaster declaration after recent storms]
Penalties on payroll and excise tax deposits due between March 31 and April 18 will be reduced if tax deposits are made by April 18, according to the IRS press release.
The IRS encourages taxpayers to electronically file an extension by April 18, 2023 if they feel that they need more time to complete the tax return. Extensions can be filed for free using the IRS Free File.
Taxpayers in the declared disaster areas also have the option to claim disaster-related casualty losses on their federal income tax return for the year the event took place or the prior year.
The usual fees and requests for copies of previously filed tax returns will be waived for affected taxpayers.
At the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax, taxpayers should put the assigned Disaster Designation, Indiana, severe storms, straight-line winds and tornadoes in bold letters before submitting to the IRS.