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Floods

IRS Grants Tax Relief to Vermont Flooding Victims

Strategic Insights

— 2 min read

Taxpayers in Vermont's 14 counties affected by flooding are now eligible for extended tax deadlines, with the Internal Revenue Service (IRS) offering relief to individuals and businesses with addresses of record in the disaster area. This includes postponing tax-filing and tax-payment deadlines until November 15, 2023. The IRS has also provided automatic filing and penalty relief to affected taxpayers, who do not need to contact the agency to get the relief.

Key Takeaways:

  • Flooding victims in Vermont's 14 counties have until November 15, 2023, to file various individual and business tax returns and make tax payments.
  • The IRS has postponed tax-filing and tax-payment deadlines for taxpayers with an address of record in the disaster area, including individuals and households residing or having a business in the affected counties.
  • Affected taxpayers who had a valid extension to file their 2022 return due to run out on October 16, 2023, now have until November 15 to file.
  • Quarterly estimated income tax payments and quarterly payroll and excise tax returns due between July 9 and November 15 are eligible for the November 15 deadline.
  • Businesses with an original or extended due date, such as calendar-year partnerships and S corporations, are also eligible for the November 15 deadline.
  • The IRS will abate penalties on payroll and excise tax deposits due after July 9 and before July 25, as long as the deposits are made by July 25.
  • Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227 to obtain information on necessary steps to take.
  • Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the 2023 return or the 2022 return, provided they writing the FEMA declaration number "3595-EM" on the return and refer to Publication 547.

Statistics:

  • 14 counties in Vermont are eligible for tax relief.
  • The tax relief postpones various tax-filing and tax-payment deadlines for taxpayers with an address of record in the disaster area.
  • Approximately 1.4 million people live in the affected counties.
  • The tax relief deadline for individual and business tax returns and tax payments is November 15, 2023.
  • The IRS notes that tax payments related to 2022 returns are not eligible for this relief.

Sources:

  • "IRS postpones various tax deadlines for Vermont flooding victims, including 2022 returns" - IRS, Oct. 2, 2023
  • "IRS Grants Tax Relief to Flood Victims in Vermont" - IRS, July 9, 2023
  • Publication 547 - "Casualties, Disasters, and Thefts"

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