Disaster Victims in North Carolina and Oklahoma Qualify for Tax Relief

The IRS has announced on its website that victims of severe storms, tornadoes and flooding on April 16, 2011 in counties in North Carolina that are designated as federal disaster areas qualifying for individual assistance have more time to make tax payments, file returns, and perform certain other time-sensitive acts. Similar relief was provided to victims of the severe storms, tornadoes, and straight-line winds on April 14, 2011 in Oklahoma.

• Who gets relief?

Only taxpayers considered to be affected taxpayers are eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts. Affected taxpayers include:

1. Any individual whose principal residence, and any business entity whose principal place of business, is located in the counties designated as disaster areas.

2. Any individual who is a relief worker assisting in a covered disaster area, regardless of whether he is affiliated with recognized government or philanthropic organizations.

3. Any individual whose principal residence, and any business entity whose principal place of business, is not located in a covered disaster area, but whose records necessary to meet a filing or payment deadline are maintained in a covered disaster area.

4. Any estate or trust that has tax records necessary to meet a filing or payment deadline in a covered disaster area.

5. Any spouse of an affected taxpayer, solely with regard to a joint return of the husband and wife.

• What may be postponed?

The IRS gives affected taxpayers until the extended date, as specified by county, to file most tax returns (including individual, estate, trust, partnership, C corporation, and S corporation income tax returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date falling on or after the onset date of the disaster (specified by county), and on or before the extended date.

• North Carolina:

The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes and flooding on Apr. 16, 2011: Bertie, Bladen, Craven, Cumberland, Currituck, Greene, Halifax, Harnett, Herford, Hoke, Johnston, Lee, Onslow, Pitt, Robeson, Sampson, Wake and Wilson counties.

For these North Carolina counties, the onset date of the disaster was Apr. 16, 2011, the extended date is June 30, 2011 (which includes the April 18 deadline for filing 2010 individual income tax returns, making income tax payments and making 2010 contributions to an individual retirement account (IRA)). The deposit delayed date is May 2, 2011.

brad@mcarthurco.com
704.544.8429