The Internal Revenue Service (IRS) announced Friday that it is extending tax filing deadlines to wildfire victims in Maui and Hawaii counties.
Hawaiian residents impacted by the wildfires that occurred earlier this month will have until February 15, 2024, to file their federal individual and business tax returns and make tax payments, said the IRS in a release. Original deadlines for tax filing and payment deadlines would generally occur from August 8, 2023, through February 15, 2024.
Added relief may also be available to impacted Hawaiians participating in a retirement plan or individual retirement arrangement. For example, a taxpayer could be eligible for a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years, said the IRS.
Taxpayers may also be eligible to make a hardship withdrawal if allowed by their plan. Each plan or individual retirement arrangement has specific rules and guidance for their participants to follow.
The IRS also said it is abating its penalties for failure to make payroll and excise tax deposits due between August 8 and September 7, as long as deposits are made by September 7.
The IRS is offering the relief to any area designated by the Federal Emergency Management Agency (FEMA), including individuals and households that reside or have businesses in Hawaii or Maui counties. The agency automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area, therefore these taxpayers do not need to contact the agency to get relief.
However, if a taxpayer moved to a disaster area after filing their return, the affected taxpayer could receive a late filing or late payment penalty notice from the IRS for the postponement period. In these cases, taxpayers can contact the IRS at 866-562-5227 to have the penalty abated, and can find a more detailed list regarding eligible locations on the disaster relief page on IRS.gov.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
