President Trump declared a major disaster in Muskogee, Tulsa and Wagoner counties.
Residents who live or have a business in these counties may qualify for the following tax relief:
- Certain deadlines falling between May 7 and September 16 are granted additional time to file through September 16th. This would include quarterly estimated tax payments that are due on June 17, and employment and excise returns due on July 31.
- Taxpayers will qualify for penalty abatement on payroll and excise tax deposits due between May 7 and May 22.
- 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 that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
- The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.
Affected Taxpayers
Taxpayers considered to be 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 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. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.
Casualty Losses
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.
Individuals may deduct personal property losses that are not covered by insurance or other reimbursements.
Affected taxpayers claiming the disaster loss should put the Disaster Designation, “Oklahoma, Severe Storms and Flooding.” at the top of the form so that the IRS can expedite the processing of the refund.
Other Relief
As usually the case, IRS may waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. If so, taxpayers should put the assigned Disaster Designation “Oklahoma, Severe Storms and Flooding.” in red ink 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. Please check with the IRS whether this waiver is available.
Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.
Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 800-829-3676. The IRS toll-free number for general tax questions is 800-829-1040.