As a result of destruction and damage caused by severe storms, flooding, and tornadoes that impacted parts of Rhode Island beginning on September 10, 2023, the Internal Revenue Service (IRS) has announced through its releases IR-2024-01 (January 26, 2024) and IR-2024-27 (January 30, 2024) that affected taxpayers in designated disaster areas will be provided tax relief.
Affected taxpayers qualifying for this tax relief include individuals and households who reside or have a business in Providence County. The taxpayers eligible for relief under this information release now will have until June 17, 2024, to file various federal individual and business tax returns and to make tax payments.
More specifically, the federal tax filing and payment relief provided under IR-2024-01 (January 26, 2024) and IR-2024-27 (January 30, 2024) includes the following:
- The affected individuals and businesses will have until June 17, 2024, to file returns and pay any taxes that were originally due during the period of September 10, 2023 through June 17, 2024.
By way of some examples, the June 17, 2024, deadline will now apply to:
- Individual 2023 income tax returns and payments that would be due on April 15, 2024
- 2023 contributions to IRAs and health savings accounts for eligible taxpayers
- Individual 2022 income tax returns who had a valid extension until October 16, 2023
- 2023 quarterly estimated income tax payments that would be due on September 15, 2023, and January 16, 2024, and 2024 estimated tax payments that would be due on April 15, 2024.
- Quarterly payroll and excise tax returns that would be due on October 31, 2023, January 31, and April 30, 2024.
- Calendar-year partnership and S corporation 2023 returns that would be due on March 15, 2024.
- Calendar-year partnership and S corporation 2022 returns that would be due on September 15, 2023, if a proper extension was filed.
- Calendar-year corporation and fiduciary returns and payments that would be due on April 15, 2024.
- Calendar-year tax-exempt organization 2022 returns that would be due on May 15, 2024.
- Calendar-year tax-exempt organization 2023 returns that would be due on November 15, 2023, if a proper extension was filed.
Also, penalties for failing to make payroll and excise tax deposits due on or after September 10, 2023, and before September 25, 2023, will be abated as long as the deposits were made by September 25, 2023.
Even though many individuals and businesses in the affected area with valid 2022 extensions have until June 17, 2024 to file their 2022 federal tax return, there is not an extension for making 2022 estimated tax payments. Estimated tax payments for the 2022 taxable year were due before September 10, 2023.
Affected taxpayers who anticipate needing additional time after June 17, 2024, to file their 2023 federal income tax return are encouraged to request an extension electronically by April 15, 2024. Though a disaster-area taxpayer qualifies to request an extension between April 15, 2024, and June 17, 2024, a request filed during this period can only be submitted on paper.
The IRS will automatically provide filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get this relief.
The IRS is also open to potentially granting an extension to taxpayers who live outside the disaster area if their records for meeting the compliance requirements are located in the affected area. Taxpayers who qualify for relief and live outside of the disaster area must contact the IRS at 866-562-5227 to request relief.
The Rhode Island Department of Revenue, Division of Taxation, has provided its guidance for taxpayers who have been impacted by the storms through ADV 2024-05 issued on February 1, 2024. According to the Division of Taxation advisory, Rhode Island taxpayers impacted will need to contact the RI Division of Taxation to be approved for a possible extension on a case-by-case basis. The Division of Taxation will review each impacted taxpayer’s request for extension on Rhode Island tax filings individually. Affected individuals can contact the RI Division of Taxation’s Personal Income Tax Section at: [email protected], or by telephone at: (401) 574-8829, option #3. Affected business owners can contact the RI Division of Taxation’s Corporate Tax Section at: [email protected] or by telephone at: (401) 574-8935.
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For more information on this topic, please contact a member of Withum’s Business Tax Services Team.
