Hurricane Ian has come and gone, but the devastation that was left behind has impacted residents and businesses in many ways. In its aftermath, many businesses will face challenging decisions, especially in responding to a loss event.
On September 29, the Internal Revenue Service announced that victims of Hurricane Ian in Florida will now have until February 15, 2023, to file various individual and business tax returns and make tax payments.
Individuals and households affected by Ian, who reside or have a business anywhere in the state of Florida, qualify for tax relief. The declaration allows the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area.
How will this apply to you? It is advisable to consult your CPA. Certain deadlines falling on or after September 23, 2022, and before February. 15, 2023, are postponed through February 15, 2023. This means individuals who had a valid extension to file their 2021 return due to run out on October 17, 2022, will now have until February 15, 2023, to file.
Here’s what else the IRS website has to say:
Covered Disaster Area
According to the IRS, they automatically identify taxpayers located in the covered disaster area and applies filing and payment relief.
Small Business Disaster Loan
These low-interest loans from the Small Business Administration can help homeowners, small businesses, and non-profits recover from a declared disaster. As of September 30, application deadlines of physical damage are November 28, 2022, and economic injury is June 29, 2023. Find out if you are eligible for an SBA Disaster Loan.
Affected taxpayers, eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts, are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. §301.7508A-1(c) are in the covered disaster area, are also entitled to relief. All relief workers affiliated with a recognized government or philanthropic organization assisting in relief activities in the covered disaster area are entitled to relief, and any individuals visiting the covered disaster area who were killed or injured as a result of the disaster are included in this tax postponement.
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. See Publication 547 for details.
Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684, Casualties and Thefts and its instructions.
Affected taxpayers claiming the disaster loss on their return should put the Disaster Designation, “FL Hurricane Ian” in bold letters at the top of the form. Be sure to include the FEMA disaster declaration number, DR-4673-FL- on any return. See Publication 547 for details.
The IRS will waive the usual fees and requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation “FL Hurricane Ian” in bold letters at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.
What if your claim is denied? Make sure you read your policy and claim denial letter clearly. There could be a simple reason why it was denied.
How do you dispute a low claim settlement? This might be a good time to enlist the help of Fiske & Company. Your business may face many challenging decisions and you will have questions, especially in responding to a loss event.
Deciding on a professional accounting team can be a challenging one. Fiske & Company is here to help our clients with the most complicated and sometimes tedious insurance claims process.
Bringing in an experienced tax and business valuation expert is advisable. Give us a call today to discuss your individual situation.
Have business interruption insurance? Let Fiske & Company help prepare the financials to ensure your claim is well thought out with the proper back up. Contact us at (954) 236-8600 or firstname.lastname@example.org for more information.