IRS provides tax relief for taxpayers in Vermont affected by flooding

Taxpayers affected by flooding have until November 15, 2023, to file various individual and business tax returns and make tax payments.

Taxpayers affected by flooding

The IRS today announced that taxpayers anywhere in Vermont affected by flooding now have until November 15, 2023, to file various individual and business tax returns and make tax payments.

According to the IRS release—IR-2023-125 (July 13, 2023)—following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in any of Vermont’s 14 counties qualify for tax relief.

The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. Affected individuals and businesses will have until November 15, 2023, to file returns and pay any taxes that were originally due between July 9, 2023, and November 15, 2023.

Eligible returns and payments include:

  • Individuals who had a valid extension to file their 2022 return due to run out on October 16, 2023. The IRS noted, however, that because tax payments related to these 2022 returns were due on April 18, 2023, those payments are not eligible for this relief.
  • Quarterly estimated income tax payments, normally due on September 15, 2023.
  • Quarterly payroll and excise tax returns, normally due on July 31, 2023, and October 31, 2023.
  • Businesses with an original or extended due date including, among others, calendar-year partnerships and S corporations whose 2022 extensions run out on September 15, 2023, and calendar-year corporations whose 2022 extensions run out on October 16, 2023.

In addition, penalties on payroll and excise tax deposits due after July 9, 2023, and before July 25, 2023, will be abated as long as the deposits are made by July 25, 2023.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.

Affected taxpayers who reside or have a business located outside the covered disaster area can call the IRS disaster hotline to request the tax relief. 

 

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