IRS Provides Tax Relief for Victims of Oregon Wildfires Schwabe, Williamson & Wyatt PC

Interestingly, FAQ5 provides different rules for timber tax estimated payments, noting those must be made quarterly in certain circumstances. If an eligible taxpayer has a quarterly payment due in October for which the eligible taxpayer is unable to make a timely payment, the DOR instructs the eligible taxpayer https://turbo-tax.org/tax-relief-for-taxpayers-affected-by-oregon/ to make a written request for penalty waiver when filing the eligible taxpayer’s timber tax return. Governor Gavin Newsom declared a statewide state of emergency on August 18, 2020, and additional states of emergency for Fresno, Madera, Mariposa, San Bernardino, and San Diego counties on September 6, 2020.

The tax agency notes, however, that because tax payments related to that return were due on July 15, those payments are not eligible for this relief. If you didn’t pay what was due then, late payment penalties and interest will continue to accrue. The Oregon relief applies to all affected taxpayers who are filing any income, payroll, and excise taxes originally due during the relief period.

Oregon Fire Victims Want Settlements to Be Nontaxable

Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency for the California Wildfires, the Internal Revenue Service postponed certain tax deadlines for individuals and businesses. Comporting with past disaster tax relief announcements, relief was extended not only to individuals and businesses who live and are located https://turbo-tax.org/ in affected areas but also to taxpayers whose records are in covered disaster areas or who are working to assist relief activities. It’s clear that Oregonians are facing similar burdens and need similar relief. The Jan. 15 deadline also applies to quarterly estimated income tax payments due on Sept. 15 and quarterly payroll and excise tax returns normally due on Nov. 2.

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• Impacted individuals and households who reside or have a business located in Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn, and Marion counties are eligible for the relief.
• Although the DOR indicated it will attempt to waive all those penalties and interest without any further action by the eligible taxpayers, the DOR instructs any eligible taxpayer that does not automatically receive relief to contact the DOR.
• So, for Oregon wildfire losses, you would need to file an amended 2019 return by October 15, 2021.
• Qualifying taxpayers have until November 30, 2020, to file returns and submit payments for sales and use tax, severance and excise tax, and withholding tax returns and payments due between August 24 and November 2, 2020.
• Relief is automatically available for Oregon taxpayers living in Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn, and Marion counties—which have all been declared federal disaster areas by the Federal Emergency Management Agency.

But a quarterly estimated tax payment due Sept. 15, 2020, would qualify for the postponement for taxpayers in the affected areas. If you need a copy of their tax return file Form 4506, Request for Copy of Tax Return. The IRS waives the usual fees and expedites requests for copies of tax returns for taxpayers who need them to apply for disaster-related benefits or to file amended returns claiming disaster-related losses. To speed up the process, when filing Form 4506 (or Form 4506-T), taxpayers should state on the form whether the request is disaster-related and list the state and type of event.

Washington National Tax Observations

In addition, it applies to tax-exempt organizations, operating on a calendar-year basis, that had a valid extension due to run out on Nov. 16, 2020. In addition, penalties on deposits due on or after September 7, 2020 and before September 22, 2020, will be abated as long as the tax deposits were made by September 22, 2020. Qualifying taxpayers have until November 30, 2020, to file returns and submit payments for sales and use tax, severance and excise tax, and withholding tax returns and payments due between August 24 and November 2, 2020. The extended due date for corporate income and franchise tax, individual income tax, fiduciary income tax, partnership tax, and partnership composite tax returns and payments due between August 24 and November 2, 2020, is December 31, 2020.

Additionally, any taxpayer in a locality later added by the Federal Emergency Management Agency or the IRS will receive the same relief. Late filing and payment penalties will be waived for those affected taxpayers seeking this relief. The tax relief is part of a coordinated federal response to the damage caused by wildfires and straight-line winds and is based on local damage assessments by FEMA. In addition, penalties on payroll and excise tax deposits due on or after September 7 and before September 22, will be abated as long as the deposits are made by September 22, 2020. In California, Louisiana, and Texas, taxpayers affected by severe weather or fires may be eligible for an extension to file and pay taxes due.

Tax Tools

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• 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.
• Also, Senate Democrats have introduced legislation to offer tax relief to individuals, businesses and states affected by wildfires like the ones devastating California, Oregon and Washington State, along with other presidentially declared disasters, such as Hurricane Sally.
• Individuals and households who reside or have a business in Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn and Marion counties qualify for tax relief.
• It’s important to check with each state in which taxes are filed to determine if a deferral is permitted.

Individuals and households who reside or have a business in Benton, Clackamas, Columbia, Coos, Deschutes, Douglas, Jackson, Jefferson, Josephine, Klamath, Lake, Lane, Lincoln, Linn, Marion, Multnomah, Tillamook, Wasco, Washington, and Yamhill counties qualify for tax relief. Taxpayers in localities added later to the disaster area will automatically receive the same filing and payment relief. Individuals and households who reside or have a business in Clackamas, Douglas, Jackson, Klamath, Lane, Lincoln, Linn and Marion counties qualify for tax relief. Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in certain areas will receive tax relief. Taxpayers with a business or residence in counties hit hard by Hurricane Hanna or Hurricane Laura may be eligible for tax relief.

Time for Tax Tasks

Penalties on payroll and excise tax deposits due on or after Sept. 7 and before Sept. 22 will be abated as long as the deposits are made by Sept. 22. Since hurricanes, tornadoes, and earthquakes seem to be a permanent fixture in national headlines, it’s 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. While some states automatically conform to an IRS deferral due to a major-disaster declaration, not all do. It’s important to check with each state in which taxes are filed to determine if a deferral is permitted. Aldrich Advisors will continue to provide updates with additional disaster relief as it becomes available.

The Internal Revenue Service announced that victims of the Oregon wildfires and straight-line winds that began on Sept. 7 now have until Jan. 15, 2021 to file various individual and business tax returns and make tax payments. The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year. The January 15, 2021 deadline applies to the third quarter estimated tax payment due on September 15, 2020. It also applies to the quarterly payroll and excise tax returns normally due on November 2, 2020.

Tax Return Filing Deadlines

Extensions will be granted in 30-day increments, and taxpayers may request up to three extensions (for a total of 90 days). If you’re in an area that FEMA designates as a major disaster, you might be able to claim your uninsured disaster losses on your taxes. You also get the option to claim them on either the return for the actual tax year the loss occurred or the prior tax year. This means you get to pick the filing that will create a better tax result for you. Any counties or areas added later to the Oregon disaster area by Federal Emergency Management Agency (FEMA) and will automatically receive the same filing and payment relief. The IRS also keeps track of these disaster-eligible areas on its own disaster relief page.