Note: This is a long posting which has the MA announcement following the federal announcement
MA-2011-30, June 16, 2011
BOSTON — Victims of severe storms and tornadoes on June 1 in parts of Massachusetts may qualify for tax relief from the Internal Revenue Service.
The President has declared the following counties a federal disaster area: Hampden and Worcester counties. Individuals who reside or have a business in these counties may qualify for tax relief.
The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after June 1 and on or before Aug. 8 have been postponed to Aug. 8. This includes the estimated tax payment for the second quarter of 2011 normally due June 15.
In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after June 1 and on or before June 16, as long as the deposits were made by June 16.
If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.
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 1-866-562-5227 to request this tax relief.
Covered Disaster Area
The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.
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.
Grant of Relief
Under section 7508A, the IRS gives affected taxpayers until Aug. 8 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after June 1 and on or before Aug. 8.
The IRS also gives affected taxpayers until Aug. 8 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after June 1 and on or before Aug. 8.
This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.
The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after June 1 and on or before June 16 provided the taxpayer made these deposits by June 16.
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 this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.
Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.
Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “Massachusetts/ Severe Storms and Tornadoes” at the top of the form so that the IRS can expedite the processing of the refund.
Other Relief
The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation 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.
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 IRS website or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.
Related Information
Disaster Assistance and Emergency Relief for Individuals and Businesses
Recent IRS Disaster Relief Announcements
| Tax AdministrationTechnical Information Release 11-4 | Massachusetts Department of Revenue |
Extension of Time for Certain Tax Filings
and Payments for Taxpayers Affected by June 2011
Severe Storms and Tornadoes
I. Introduction
This TIR announces that the Massachusetts Department of Revenue (“Department”) will grant automatic extensions of time until August 8, 2011 for certain tax filings and payments otherwise required to be made by taxpayers between June 1, 2011 and August 8, 2011. On June 15, 2011, the President of the United States declared a disaster area for certain counties in Central Massachusetts – specifically Hampden and Worcester – due to severe storms and tornadoes that struck the area on June 1, 2011. Following that declaration, the Internal Revenue Service (”IRS”) announced extensions of time for certain federal tax filing and payment deadlines. See
http://www.irs.gov/newsroom/article/0,,id=240651,00.html(June 16, 2011) (the “IRS Release”). See also G.L. c. 62C, § 87.
II. Grant of Relief
The due date for certain returns and tax payments required from affected taxpayers will be extended until August 8, 2011, consistent with the guidance stated in the IRS Release. This extension applies to most tax returns and tax payments, including estimated tax payments, that either have an original or extended due date occurring between June 1, 2011 and August 8, 2011. For example, this extension applies to the June 15 deadline for making estimated tax payments. Also, the extension applies to filing corporate excise or unrelated business income tax returns in the instance of a corporation or non-profit corporation with a fiscal year end that has a filing due date within the extension period,[1] estate and trust income tax returns, estate tax returns, partnership returns, and S corporation returns, as well as payments that are due with such returns.
This extension does notapply to trustee tax returns and payments, including sales or use tax returns and payments, meals tax returns and payments, room occupancy tax returns and payments, and employer and other withholding tax returns and payments. However, the Department expects that late file and late pay penalties will generally be waived with respect to such trustee tax returns and payments where the taxpayer has reasonable cause for the late filing and payment under existing Departmental procedures for reasonable cause. See AP 633.
In addition, this extension does not apply to taxpayers that have previously filed their returns but not yet made payment.
During the time of this extension, when applicable, no interest or penalties will accrue. However, a taxpayer that does not meet the extended August 8, 2011 due date will owe interest and penalties dating back to the original tax return or tax payment due date.
The extension of time granted under this TIR shall not affect tax deficiencies existing prior to the period beginning June 1, 2011, nor will it apply to claims for abatement, making elections, the filing of any other tax documents with the Department, or filings with the Appellate Tax Board or tax appeals filed with Massachusetts Courts.
III. Affected Taxpayers
For purposes of this TIR, “affected taxpayers” are any individuals who live, and businesses whose principal place of business is located, in the federal disaster area, which consists of the following Massachusetts counties: Hampden and Worcester. Affected taxpayers also include individuals and businesses whose tax records, including records needed for tax deposits, are located in these counties, and relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area.
IV. To Claim the Extension
The Department’s computer systems will identify taxpayers located in the covered disaster area and apply automatic filing and payment relief for electronically filed returns. If for some reason the taxpayer is unable to file electronically, the taxpayer’s paper forms and returns should be marked at top in red ink with the notation “2011 Tornadoes.” Any affected taxpayer who files and pays by the extended deadline and still receives late filing or payment penalties should contact the Department’s Customer Service Bureau.
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