Tax relief for Missouri storm and flood victims
The IRS has given victims of the recent severe storms and floods in Missouri more time to file certain personal and business income tax returns and make tax payments. Specifically, victims of the storms and floods that began July 25, 2022 have until November 15, 2022 to file and pay tax returns and payments due between July 25 and November 14.
Tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as eligible for individual assistance. At this point, only affected taxpayers who live or have a business in the independent city of St. Louis and in the counties of Montgomery, St. Charles and St. Louis are eligible for the extensions. However, the IRS will provide the same relief to all taxpayers in other areas designated by FEMA in the future.
The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers affected by the Missouri natural disasters. When requesting copies of a tax return or tax return transcript, write “Missouri Severe Storms and Flooding” in bold at the top of Form 4506 (copy of return) or Form 4506-T ( transcript) and send it to the IRS.
The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes aid workers affiliated with a recognized government or philanthropic organization, and anyone visiting the area who has been killed or injured as a result of the disaster.
The deadlines being extended for Missouri storm and flood victims include 2021 personal income tax returns that were due October 17, 2022. However, Payments for 2021 income taxes that were due April 18, 2022, are not extended.
Businesses with initial or extended income tax due dates that fall within the affected period also have more time to file and pay their taxes. This includes partnerships and S corporations with 2021 tax year extensions expiring September 15, and corporations with an extension expiring October 17.
Estimated quarterly tax payments due September 15, 2022 are also extended until November 15. The due date for quarterly payroll and excise duty returns normally due August 1 and October 31 is also extended to November 15. Penalties on payroll and excise tax deposits due July 25 through August 8 are also waived as long as deposits are made before August 9, 2022.
Taxpayers do not need to contact the IRS to obtain this relief. However, if an affected person receives a late filing or late payment penalty notice from the IRS, they should call the number listed on the notice to have the penalty reduced.
Deduction for damaged or lost property
Victims of severe storms and flooding in Missouri may be able to claim a tax deduction for unreimbursed damaged or lost property. To do this, they usually have to itemize and file Schedule A with their tax return. However, victims claiming the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.
The deduction can be claimed on the tax return for the year of the damage or loss of property or the previous year. So, for any destruction in 2022, the deduction can be claimed either on a 2021 tax year return or on a 2022 return. In either case, you must list the FEMA return number on the return requesting the deduction. For recent Missouri storms and flooding, the number is DR-4665-MO.
If you decide to claim a deduction for 2021, you can amend your 2021 return by filing Form 1040-X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extension) for the year in which the loss occurred. So, for 2022 Missouri storm or flood losses, you will need to file a 2021 amended return by October 16, 2023. Affected taxpayers claiming the disaster loss on a 2021 return must also report the disaster designation (“Missouri Severe Storms and Flooding”) in bold type at the top of the form. See IRS Publication 547 for details.