As of August 29, 2017, the IRS has declared that the victims of Hurricane Harvey may now qualify for certain tax relief opportunities from the Internal Revenue Service. The event that took place on August 23, 2017, was not only tragic but continues to wreak havoc in the region. Those that have been affected should take advantage of extensions, as well as other local area opportunities for tax relief.
Federal Tax Relief Opportunities
According to Section 7508A – Tax Relief for Victims of Hurricane Harvey in Texas, individuals who reside or have a business in Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria, and Wharton Counties may qualify for tax relief.
Updated 8/30 to include Colorado, Fayette, Hardin, Jasper, Jefferson, Montgomery, Newton, Orange, Sabine, San Jacinto and Waller Counties.
The federal tax relief provided comes in the form of extensions for certain taxpayer deadlines. Taxpayers with valid extensions through October 16, 2017, for their 2016 returns, now have until January 31, 2018. Additionally, quarterly estimated income tax that would normally be due in September and early January, as well as payroll excise tax due in October, will now be extended to January 31, 2018. Finally, penalties for payroll and excise tax deposits will be abated as long as the deposits are made by September 7, 2017.
The January 31, 2018 extension, made possible by the IRS declaration, may be used to file most tax returns with a due date or extended due date on or after August 23, 2017, the date of the natural disaster.
Taxpayers affected by Hurricane Harvey may also claim disaster-related casualty losses on federal returns for the year in which the event occurred. For more information on the IRS declaration and to find out if you are eligible for federal tax relief, visit: https://www.irs.gov/uac/newsroom/tax-relief-for-victims-of-hurricane-harvey-in-texas
State/Local Relief Opportunities
In addition to federal tax relief, the Governor of Texas declared that evacuees and relief workers are exempt from state and local hotel tax. More opportunities for tax relief on the state and local level may become available, and residents and individuals with businesses in the area are encouraged to visit the Governor’s website for more details.
For more information on state and local tax relief opportunities, please visit: https://gov.texas.gov/
Our deepest sympathies go out to the individuals, families, and businesses affected by Hurricane Harvey. We encourage everyone to help support the relief efforts and share any information you have regarding relief opportunities for Houston and the surrounding area.
If you or someone you know has questions regarding the tax relief opportunities, you are also welcome to reach out to our Texas-based regional directors Sabrina Turner and Todd French and they will be happy to assist you.