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IRS Publicizes Tax Reduction for Hawaii Wildfire Victims


Replace Mar 27, 2024: The Inner Income Service additional postponed till Aug. 7, 2024, varied tax-filing and tax-payment deadlines for people and companies affected by the Aug. 8, 2023, wildfires in Hawaii. Beforehand, the deadline was Feb. 15, 2024.

On the whole, which means that affected people, companies and tax-exempt organizations will now have till Aug. 7, 2024, to file their 2023 returns and pay any taxes due. This additionally features a additional tax submitting deadline extension for tax filers who filed for a sound extension for his or her 2022 tax returns. It doesn’t, nonetheless, embrace an extension to pay taxes owed on tax yr 2022 taxes. That is along with the expansive reduction, introduced final August, shortly after the wildfires occurred.

Beneath the current IRS extension, the tax reduction postpones varied tax submitting and fee deadlines that occurred from Aug. 8, 2023, by means of Aug. 7, 2024 (postponement interval). Because of this, affected people and companies may have till Aug. 7, 2024, to file returns and pay any taxes that had been initially due throughout this era.

This implies, for instance, that the Aug. 7, 2024, deadline will now apply to:

  • 2023 Particular person revenue tax returns and funds usually due on April 15, 2024.
  • 2023 contributions to IRAs and well being financial savings accounts for eligible taxpayers.
  • Some tax yr 2023 and 2024 quarterly estimated revenue tax funds usually due on Sept. 15, 2023, and Jan. 16, April 15 and June 17, 2024.
  • Quarterly payroll and excise tax returns usually due on Oct. 31, 2023, and Jan. 31, April 30 and July 31, 2024.
  • 2023 Calendar-year partnership and S company returns usually due on March 15, 2024.
  • Calendar-year company and fiduciary returns and funds usually due on April 15, 2024.
  • Calendar-year tax-exempt group returns usually due on Could 15, 2024.

As well as, people, companies and tax-exempt organizations who had legitimate extensions to file their 2022 returns will now have till Aug. 7, 2024, to file them. Nonetheless, funds on these returns are usually not eligible for reduction as a result of they had been initially due earlier than the wildfires occurred. The Catastrophe help and emergency reduction for people and companies web page has particulars on different returns, funds and tax-related actions qualifying for reduction in the course of the postponement interval.

The IRS mechanically supplies submitting and penalty reduction to any taxpayer with an IRS handle of file situated within the catastrophe space. These taxpayers don’t have to contact the company to get this reduction.

Reminder about extensions

The IRS urges anybody who wants an extra tax-filing extension, past Aug. 7, 2024, for his or her 2023 federal revenue tax return to request it electronically by April 15, 2024. Although a disaster-area taxpayer qualifies to request an extension between April 15 and Aug. 7, 2024, a request filed throughout this era can solely be submitted on paper. Whether or not requested electronically or on paper, the taxpayer will then have till Oct. 15, 2024, to file, although tax yr 2023 funds are nonetheless due on Aug. 7, 2024. Go to IRS.gov/extensions for particulars.

IRS August 21, 2023 Announcement

Since August 8, wildfires have continued to devastate areas of Hawaii and the IRS has provided tax reduction to victims of those wildfires. If these fires impacted you, we would like you to know TurboTax is right here for you, and we wish to maintain you updated with vital tax reduction data which will aid you on this time of want.

The Federal Emergency Administration Company (FEMA) declared the current occasions as a catastrophe. The IRS introduced that victims of the devastating wildfires that occurred in elements of Hawaii now have till February 15, 2024, to file varied particular person and enterprise tax returns and make sure tax funds.

What are the prolonged tax and fee deadlines in Hawaii?

The tax reduction postpones varied tax submitting and fee deadlines that occurred beginning on August 8, 2023. Because of this, affected people, and households that reside or have enterprise in Maui and Hawaii counties have till February 15, 2024, to file returns and pay any taxes that had been initially due throughout this era (on or after Aug. 8, 2023 however earlier than Feb. 15, 2024). These embrace:

  • 2022 Particular person Returns: 2022 particular person tax returns that had been due on October 16, 2023 have an prolonged deadline till February 15, 2024. The IRS famous that for the reason that tax funds associated to those 2022 returns had been due April 18, 2023 that these funds are usually not eligible for this reduction.  
  • 2022 Enterprise Returns: Any enterprise with an authentic or prolonged due date (together with these whose 2022 extensions run out on September 15 or October 16) additionally qualify for the February 15, 2024 deadline. 
  • Quarterly Estimated Tax Cost: Quarterly estimated tax funds usually due September 15, 2023 and January 16, 2024 have been prolonged till February 15, 2024. 
  • Quarterly Payroll and Excise Tax Returns: Quarterly payroll and excise tax returns which are usually due on October 31, 2023 and January 31, 2024, are additionally prolonged till February 15, 2024. As well as, penalties on payroll and excise tax deposits due on or after August 8 and earlier than September 7, 2023 will likely be abated so long as the deposits are made by September 7, 2023.

Further reduction could also be out there to affected taxpayers who take part in a retirement plan or particular person retirement association (IRA). For instance, it’s possible you’ll be eligible to take a particular catastrophe distribution that may not be topic to the extra 10% early distribution tax and unfold the revenue over three years. Or you may additionally be eligible to make a hardship withdrawal. Every plan or IRA has particular guidelines and it is best to test together with your plan administrator. 

What do I have to do to assert the tax extension? 

The IRS mechanically supplies submitting and penalty reduction to any taxpayer with an IRS handle of file situated within the catastrophe space. Taxpayers don’t have to contact the IRS to get this reduction. Nonetheless, if an affected taxpayer receives a late submitting or late fee penalty discover from the IRS that has an authentic or prolonged submitting, fee or deposit due date falling throughout the postponement interval, the taxpayer ought to name the quantity on the discover to have the penalty abated.

The present record of eligible localities is at all times out there on the catastrophe reduction web page on IRS.gov.

Do surrounding areas outdoors of Hawaii qualify for an extension? 

The IRS will work with any taxpayer who lives outdoors the catastrophe space however whose information vital to satisfy a deadline occurring in the course of the postponement interval are situated within the affected space. Taxpayers qualifying for reduction who dwell outdoors the catastrophe space have to contact the IRS at 866-562-5227. This additionally contains staff, helping the reduction actions, who’re affiliated with a acknowledged authorities or philanthropic group.

How can I declare a casualty and property loss on my taxes if impacted?

People or companies who suffered uninsured or unreimbursed disaster-related casualty losses can select to assert them on both the tax return for the yr the loss occurred (2023 return) or the loss might be deducted on the tax return for the prior yr (2022 return). People might also deduct private property losses that aren’t coated by insurance coverage or different reimbursements. 

Affected taxpayers claiming the catastrophe loss on their return ought to put the Catastrophe Designation, “Hawaii Wildfires”. 

Make sure you write the next FEMA declaration quantity on any return claiming a loss:  

The tax reduction is a part of a coordinated federal response to the harm brought on by the cruel storms and is predicated on native harm assessments by FEMA. For data on catastrophe restoration, go to disasterassistance.gov. If you’re not a sufferer, however you might be seeking to assist these in want, it is a nice alternative to donate or volunteer your time to legit 501(c)(3) not-for-profit charities who’re offering reduction efforts for storm victims.

Katharina Reekmans
Katharina Reekmans

Katharina Reekmans is an Enrolled Agent and a contributor to the TurboTax Weblog workforce. Katharina has years of expertise in tax preparation and illustration earlier than the IRS. Her passions encompass monetary literary and tax regulation interpretation. She has a powerful dedication to utilizing all assets and information to greatest serve the curiosity of purchasers. Katharina has labored as a senior tax accountant, operations supervisor, and controller. Katharina prides herself on unraveling tax legal guidelines in order that the common particular person can perceive them. Extra from Katharina Reekmans

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