By Payroll and Entitlements Editorial Staff
The president has declared a federal disaster area in Michigan. The disaster is due to severe storms and flooding that began on May 16, 2020. The disaster area includes:
Taxpayers who live or have a business in the disaster area may qualify for tax relief.
Michigan filing deadlines extended. The IRS extended certain deadlines falling on or after May 16, 2020, and before October 15, 2020, to October 15, 2020. The extension includes filing for most returns, including:
- individual, corporate, estate and trust income tax returns;
- partnership and S corporation income tax returns;
- estate, gift and generation-skipping transfer tax returns;
- the Form 5500 series returns, and
- employment and certain excise tax returns.
However, the extension does not include information returns in the Form W-2, 1098, or 1099 series or Forms 1042-S or 8027.
Michigan payment deadlines extended. Also, the relief includes extra time to make tax payments. This includes estimated tax payments due on or after May 16 and before October 15, 2020. In addition, taxpayers have until October 15, 2020, to perform other time-sensitive actions due on or after March 18, 2020, and before July 31, 2020.
The IRS excused late penalties for employment and excise tax deposits due on or after May 16, 2020 and before June 1, 2020. But, the taxpayer must make the deposits by June 1, 2020.
Casualty losses. Affected taxpayers can claim disaster-related casualty losses on their federal income tax return. Taxpayers may get relief sooner by claiming their losses on their 2019 or 2020 return. Individuals may deduct personal property losses not covered by insurance or other reimbursements.
Taxpayers claiming a disaster loss on their 2019 or 2020 return should write the disaster designation "Michigan severe storms" at the top of the return. This will allow the IRS to speed refund processing.
Also, the IRS will provide affected taxpayers with copies of prior year returns without charge. To get this expedited service, taxpayers should:
- 1. add the disaster designation at the top of Form 4506, Request for a Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, and
- 2. submit it to the IRS. (Michigan Disaster Relief Notice (MI-2020-01)).
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