Tax Relief Announced for Storm Victims in Puerto Rico
Puerto Rico residents impacted by severe storms that hit the island in early Feb. 2022 have been given an extension until June 15, 2022, to file individual and business tax returns and make their payments, the IRS announced.
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The tax relief is available to those who live in the municipalities of Cataño, Dorado, Toa Baja, Vega Alta and Vega Baja and were negatively affected by severe storms, flooding and landslides. A recent disaster declaration issued by the Federal Emergency Management Agency (FEMA) has allowed the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in these disaster areas.
The relief means that tax deadlines falling on or after Feb. 4, 2022, and before June 15, 2022, are postponed through June 15. This includes 2021 individual and business tax returns that are normally due on April 18, and various 2021 business returns that are normally due on March 15, the IRS said. The June 15 deadline also applies to 2021 returns belonging to tax-exempt organizations, which are normally due on May 16.
Quarterly estimated tax payments that are normally due on April 18, 2022 have been extended to June 15, 2022, as have quarterly payroll and excise tax returns normally due on May 2. In addition, farmers who choose to forgo making estimated tax payments and normally file their returns by March 1 will now have until June 15 to file their 2021 return and pay any taxes due.
Penalties on payroll and excise tax deposits due on or after Feb. 4, 2022, and before Feb. 22, 2022, will be abated as long as the tax deposits were made by Feb. 22, 2022.
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Affected taxpayers who receive late filing or late payment penalty notices from the IRS that have original due dates that fall within the postponement period are advised to call the telephone number on the notice to have the IRS abate the penalty.
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