IRS Offers Tax Relief for Tennessee Storm Victims

Dangerous tornadoes, severe storms, and straight-line winds that occurred starting on March 31 have left parts of Tennessee in a state of disaster. As a result the IRS has offered tax relief to victims of these storms. If these storms impacted you, we want you to know TurboTax is here for you, and we want to keep you up to date with important tax relief information that may help you in this time of need.

The Federal Emergency Management Agency (FEMA) declared the recent events as a disaster. The IRS announced that victims of the harsh storms that occurred in parts of Tennessee now have until July 31, 2023, to file various individual and business tax returns and make certain tax payments.

What are the extended tax and payment deadlines in Tennessee?

The tax relief postpones various tax filing and payment deadlines that occurred starting on March 31, 2023. As a result, affected individuals, and households that reside or have business in Cannon, Hardeman, Hardin, Haywood, Lewis, Macon, McNairy, Rutherford, Tipton and Wayne counties have until July 31, 2023, to file returns and pay any taxes that were originally due during this period. These include:

• 2022 Individual and Business Returns: 2022 individual tax returns and payments that were due on April 18, 2023 as well as various 2022 business returns along with payments normally due on April 18 have an extended deadline until July 31, 2023.
• 2022 IRA Contributions: Affected taxpayers will have until July 31, 2023 to make 2022 IRA contributions to make an impact on their 2022 taxes.
• Quarterly Estimated Tax Payment: Quarterly estimated tax payments normally due April 18, 2023 and June 15, 2023 have been extended until July 31, 2023. 
• Quarterly Payroll and Excise Tax Returns: Quarterly payroll and excise tax returns that are normally due on April 30, 2023, are also extended until July 31, 2023. In addition, penalties on payroll and excise tax deposits due on or after March 31 and before April 18, 2023 will be abated as long as the deposits were made by April 18, 2023.

What do I need to do to claim the tax extension? 

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Taxpayers do not need to contact the IRS to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

The current list of eligible localities is always available on the disaster relief page on IRS.gov.

Do surrounding areas outside of Tennessee qualify for an extension? 

The IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers, assisting the relief activities, who are affiliated with a recognized government or philanthropic organization.

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

Individuals or businesses who suffered uninsured or unreimbursed disaster-related casualty losses can choose to claim them on either the tax return for the year the loss occurred (2023 return normally filed next year in this instance) or the loss can be deducted on the tax return for the prior year (2022, normally filed this tax season). Individuals may also deduct personal property losses that are not covered by insurance or other reimbursements. 

Be sure to write the following FEMA declaration number on any return claiming a loss:  

• 4701-DR 

The tax relief is part of a coordinated federal response to the damage caused by the harsh storms and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.

If you are not a victim, but you are looking to help those in need, this is a great opportunity to donate or volunteer your time to legitimate 501(c)(3) not-for-profit charities who are providing relief efforts for storm victims.