North Carolina Victims of Hurricane Florence Granted Tax Relief

President Donald Trump has declared a federal disaster area in North Carolina. The disaster is due to Hurricane Florence, which began on September 7, 2018.

The disaster area includes the following counties in North Carolina: Beaufort, Bladen, Brunswick, Carteret, Columbus, Craven, Cumberland, Duplin, Harnett, Lenoir, Jones, New Hanover, Onslow, Pamlico, Pender, Robeson, Sampson, and Wayne.

Taxpayers who live or have a business in the disaster area may qualify for tax relief.

Filing Deadlines Extended

The IRS has extended certain deadlines falling on or after September 7, 2018, and before January 31, 2019, to January 31, 2019. The extension includes filing for most returns, including:

  • individual, corporate, estate and trust income tax returns;
  • partnership and S corporation income tax returns;
  • estate, gift and generation-skipping transfer tax returns;
  • the Form 5500 series returns, and
  • employment and certain excise tax returns.

However, the extension does not include information returns in the Form W-2, 1098, or 1099 series or Forms 1042-S or 8027.

Payment Deadlines Extended

The relief also includes extra time to make tax payments. This includes estimated tax payments due on or after September 7, 2018, and before January 31, 2019. In addition, taxpayers have until January 31, 2019, to perform other time-sensitive actions due on or after September 7, 2018, and before January 31, 2019.

Penalties on employment and excise tax deposits due on or after September 7, 2018, and before September 24, 2018, will be abated, as long as the deposits were made by September 24, 2018.

Casualty Losses

Affected taxpayers can claim disaster-related casualty losses on their federal income tax return. Individuals may deduct personal property losses not covered by insurance or other reimbursements.

Taxpayers claiming a disaster loss on their 2017 return should write the disaster designation “North Carolina, Hurricane Florence” at the top of the return, to allow the IRS to speed refund processing.

Other Relief

The IRS will provide affected taxpayers with copies of prior year returns without charge. To get this expedited service, taxpayers should add the disaster designation in red ink at the top of Form 4506, Request for a Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, and submit it to the IRS.

Other Locations

Taxpayers in localities added later to the disaster area, including those in other states, will automatically receive the same filing and payment relief.