Tax Breaks

Tax Deadlines Extended for Tennessee Flood Victims

Residents and businesses impacted by the recent storms and flooding in Tennessee get more time to file and pay certain federal taxes.

Residents of certain Tennessee counties can wait until January 3, 2022, to file and pay certain federal taxes. The IRS extended various tax deadlines because of the severe storms and flooding that occurred on August 21, 2021, in parts of the state that were declared a disaster area by the Federal Emergency Management Agency (FEMA). The tax relief applies to residents of Dickson, Hickman, Houston, and Humphreys Counties who were affected by the storms and flooding.

Various federal tax filing and payment due dates for individuals and businesses from August 21 to January 2 will be shifted to January 3. This includes the October 15, 2021, due date for filing 2020 income tax returns that were extended (the original due date was May 17, 2021).

Tennessee storm and flood victims will also get more time to make the quarterly estimated tax payments that are due on September 15, 2021.

Penalties on payroll and excise tax deposits due from August 21 to September 6 will also be waived if the deposits are made by September 7, 2021.

You don't have to contact the IRS to get this relief. However, if you receive a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, you should call the number on the notice to have the penalty abated.

The IRS will also waive fees for obtaining copies of previously filed tax returns for taxpayers affected by the storms and flooding. When requesting copies of a tax return or a tax return transcript, write "Tennessee – Severe Storms and Flooding" in bold letters at the top of Form 4506 (copy of return) or Form 4506-T (transcript) and send it to the IRS.

In addition, the IRS will work with any taxpayer who lives outside Tennessee, but whose records necessary to meet a deadline occurring during the postponement period are located in the state. Taxpayers qualifying for relief who live in another state need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2021 return normally filed next year), or the return for the prior year. This means that taxpayers can, if they choose, claim these losses on their 2020 return. Be sure to write the FEMA declaration number (FEMA 4609-DR) on any return claiming a loss. It's also a good idea for affected taxpayers claiming the disaster loss on a 2020 return to put the Disaster Designation ("Tennessee – Severe Storms and Flooding") in bold letters at the top of the form. See IRS Publication 547 for details.

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