The IRS Provides Some Good News to Oregonians During a Time When Positive News Is Rare News Releases OR-2020-23 and IR-2020-215: Larry’s Tax Law

Tax Relief For Taxpayers Affected By Oregon Wildfires

For instance, certain deadlines falling on or after September 7, 2020, are granted additional time to file through January 15, 2021. This includes 2019 individual income tax returns that have a valid extension through October 15, 2020, and the employment and excise tax returns due on November 2, 2020. It also includes the quarterly estimated individual income tax payment due on September 15, 2020. It also applies to tax-exempt organizations, operating on a calendar-year basis that had a valid extension due to run out on November 16, 2020.

Tax Relief For Taxpayers Affected By Oregon Wildfires

If you are in the unfortunate situation of being affected by the wildfires in Oregon, we send our heartfelt condolences to you. The Oregon wildfires are now a federally declared natural disaster, currently affecting those in Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn and Marion counties.

Service Areas

Affected taxpayers claiming the disaster loss on a 2019 or 2020 return should put the Disaster Designation, “Oregon – Wildfires and Straight-line Winds,” in bold letters at the top of the form. Be sure to include the disaster declaration number, FEMA 4562, on any return. A title insurance company is not able to provide the required title insurance policy necessary to settle or close a real estate transaction due to the federally declared disaster.

The tax relief postpones various tax filing and payment deadlines that occurred starting on Sept. 7, 2020. As a result, affected individuals and businesses will have until Jan. 15, 2021, to file returns and pay any taxes that were originally due during this period. This means individuals who had a valid extension to file their 2019 return due to run out on Oct. 15, 2020, will now have until Jan. 15, 2021, to file. The IRS noted, however, that because tax payments related to these 2019 returns were due on July 15, 2020, those payments are not eligible for this relief. The tax relief postpones various tax filing and payment deadlines that occurred starting on September 7, 2020. As a result, affected individuals and businesses will have until January 15, 2021, to file returns and pay any taxes that were originally due during this period.

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For forms and publications, visit the Forms and Publications search tool. For a complete listing of the FTB’s official Spanish pages, visit La esta pagina en Espanol . The growing use of cross-chain bridges — services that can transfer cryptocurrency from one blockchain to another — has made it more difficult to track virtual currency, particularly in cases of money laundering. The Internal Revenue Service is searching for a new deputy chief of its Independent Office of Appeals to help manage and develop the office. Ernst & Young employees were upset to discover their paycheck deposits had been reversed after a glitch at its payroll processing company ADP.

Why am I getting a letter from the Department of Treasury 2022?

In early January 2022, the IRS will be sending out letters to some taxpayers. It is very important to save these letters for use in preparing your 2021 tax return. Letter ID 6475 will notify taxpayers of the amount of the third stimulus payment and any plus-up payments they received in March of 2021.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred , or the return for the prior year . Taxpayers should write the declaration number – 4562 for the wildfires in Oregon – on returns claiming a loss. Currently this includes Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn and Marion Counties in Oregon, but taxpayers in localities added later to the disaster area will automatically receive the relief. Victims of the Oregon wildfires that began on Sept. 7 now have until January to file various federal individual and business returns and make tax payments. Oregon wildfire victims will also have until January 15 to make quarterly estimated tax payments due on September 15, 2020. Below are tax return filing and tax payment deadlines that the IRS has changed due to natural disasters that have occurred.

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The tax relief is part of a coordinated federal response to the damage caused by these wildfires and is based on local damage assessments by FEMA. On September 16 and 17, the Internal Revenue Service announced good news for many taxpayers residing in Oregon.

Automatic, and they do not apply to state or local states of emergency or all federally declared disasters. A list of Oregon, and other affected areas can be found on Tax Relief in Disaster Situation page onthe IRS website. The IRS is offering this relief to any area designated by the Federal Emergency Management Agency , as qualifying for individual assistance. Since hurricanes, tornadoes, and earthquakes seem to be a permanent fixture in national headlines, it’s Tax Relief For Taxpayers Affected By Oregon Wildfires important to remember that this tax relief generally becomes available whenever any large-scale natural disaster strikes. If you are the victim of a recent natural disaster, visit the IRS disaster relief page to see if your area has received tax relief. FAQ6 specifically addresses the property tax ramifications in the event a taxpayer’s property is damaged or destroyed during the wildfires. The DOR provides a separate explanatory document related to tax proration.

Oregon Dept. of Revenue outlines relief for wildfire victims

If you reside in a state that has been struck by a hurricane, flood, wildfire, earthquake, or other disaster, you may qualify for extended deadlines to file your return and submit your payments. When you prepare and e-File your 2021 Tax Return on, your return is submitted to the IRS quickly. The relief postpones various tax filing and payment deadlines that occurred starting on September 7, 2020 and before January 15, 2021. Affected individuals and businesses have until January 15, 2021 to file returns and pay taxes originally due during this period. While this extends the October 15, 2020 deadline for filing individual or C corporation returns on extension, since the related payments were due on July 15, 2019, the related payment of taxes is not extended. The relief postpones filing and payment deadlines that occurred starting on Sept. 7. Affected individuals and businesses will have until Jan. 15 to file returns and pay any taxes that were due during this period.

  • Those unable to comply with their existing payment agreement between now and January 15, 2021 can request a modification to their payment plan by calling the department at least five business days before their payment due date.
  • We went through a very stressful experience when we came to know about FBAR and OVDI and it disturbed our peace of mind.
  • This applies to other tax deadlines around this time, such as skipping the fourth quarterly estimated payment normally due January 15.
  • These small businesses are Dark Horses among their larger and more well-known competition.
  • You will get the strategy or plan to move forward to resolve your tax problems!
  • By submitting this to your tax attorney in advance of the audit, your tax attorney can review your documentation and determine if there are any gaps that need to be addressed before starting the dialogue with the IRS agent.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website,

KPMG news archive of insights for taxpayers affected by a natural disaster.

Finally, FAQ7 and FAQ8 reiterate earlier informal pronouncements of the DOR making it clear that eligible taxpayers are instructed to contact the DOR if they believe they are entitled to relief or have any other questions. Extensions only extend time to file, extensions do not extend time to pay. So if you have a balance due, penalties and interest will continue accruing; therefore, we suggest file your returns asap. The bill allows taxpayers in designated disaster areas to refer to earned income from the immediately preceding year for purposes of determining the Earned Income Tax Credit and Child Tax Credit in tax year 2020. SALEM, Ore. — The Oregon Department of Revenue said Tuesday it will provide relief to victims of Oregon wildfires and straight-line winds. KPMG Spark is the online accounting service for small and midsized businesses providing bookkeeping, tax prep, and facilitating access to payroll services — where and when you need it.

GEMMS also has the experience and resources to provided worldwide Tax Compliance, Human Resource, and Payroll Consulting. GEMMS provides a level of expertise only found in Big Four accounting and consulting firms with a level of focus and responsiveness only available from smaller, more flexible firms. We have been to a lot of weddings lately so I thought this might be timely. You will not receive any notification from the IRS unless your request is denied. The extension also applies to relief workers affiliated with recognized charities and government agencies assisting in the affected area.

On September 21, 2020, we outlined in this article relief the IRS provided with respect to certain victims of recent Oregon wildfires. On September 30, 2020, the Department of Revenue (“DOR”) followed the IRS, providing similar relief for taxpayers affected by Oregon wildfires. Additionally, the DOR published a set of Frequently Asked Questions (“FAQs”) pertaining to this new tax relief. Be sure to write the FEMA declaration number – 4562 − for the wildfires in Oregon on any return claiming a loss. The IRS disaster relief page has details on other returns, payments and tax-related actions qualifying for the additional time. Kentucky residents affected by the late July/early August storms and flood have an extended deadline from October 17, 2022 to November 15, 2022 to file 2021 Taxes. This also applies to quarterly estimated taxes that would normally be due on September 15, 2022.

Tax Relief For Taxpayers Affected By Oregon Wildfires

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For more information on tax help available to people impacted by natural disasters, see Tax Relief for Hurricane, Wildfire, Flood and Other Natural Disaster Victims. Penalties on payroll and excise tax deposits due on or after Sept. 7, 2020, and before Sept. 22, 2020, will be abated as long as the deposits are made by Sept. 22, 2020. GEMMS also provides tax compliance and consulting for our international Business clients. So whether you are in charge of sending international assignees abroad, the tax manager for an international company, or in need of a U.S. domestic or international tax return – GEMMS provides a one-stop all inclusive solution. As you know, your 2019 US Federal and State Individual Income Tax Returns were due April 15, 2020. If you have not yet completed your 2019 returns but you have obtained the 6-month extension you can request an additional 2-month DISCRETIONARY extension.

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