The Inside Income Service (IRS) has introduced tax aid for people and companies in 25 Minnesota counties affected by extreme storms and flooding that started on June 16, 2024. Taxpayers in these areas now have till February 3, 2025, to file numerous federal tax returns and make tax funds.
Affected Areas
The IRS is providing aid to any space designated by the Federal Emergency Administration Company (FEMA). At present, this consists of the next counties in Minnesota: Blue Earth, Carver, Cass, Cook dinner, Cottonwood, Faribault, Fillmore, Freeborn, Goodhue, Itasca, Jackson, Lake, Le Sueur, Mower, Murray, Nicollet, Nobles, Pipestone, Rice, Rock, St. Louis, Steele, Wabasha, Waseca, and Watonwan. Extra counties could also be added as injury assessments proceed.
Submitting and Cost Reduction
The tax aid postpones numerous tax submitting and cost deadlines that occurred from June 16, 2024, by means of February 3, 2025. Consequently, affected people and companies may have till February 3, 2025, to file returns and pay any taxes that have been initially due throughout this era. This consists of:
- Particular person, enterprise, or tax-exempt group returns with legitimate extensions to file their 2023 federal returns.
- Quarterly estimated earnings tax funds due on June 17, September 16, 2024, and January 15, 2025.
- Quarterly payroll and excise tax returns due on July 31, October 31, 2024, and January 31, 2025.
Moreover, penalties for failing to make payroll and excise tax deposits due between June 16 and July 1, 2024, can be abated if the deposits have been made by July 1, 2024.
Automated Reduction and Extra Help
The IRS will routinely present submitting and penalty aid to taxpayers with an IRS deal with of document positioned within the catastrophe space. Taxpayers who moved to the catastrophe space after submitting their return and obtain a late submitting or late cost penalty discover ought to contact the IRS to have the penalty abated. The IRS can even work with taxpayers who stay exterior the catastrophe space however whose data needed to satisfy a deadline through the postponement interval are positioned within the affected space.
Extra Tax Reduction Choices
People and companies in federally declared catastrophe areas who suffered uninsured or unreimbursed disaster-related losses can select to assert these losses on both their 2024 return (filed subsequent 12 months) or their 2023 return (filed this 12 months). Taxpayers have as much as six months after the due date of their federal earnings tax return for the catastrophe 12 months to make this election, with a deadline of October 15, 2025, for particular person taxpayers.
Certified catastrophe aid funds, together with these obtained from authorities businesses for private, household, dwelling, or funeral bills, in addition to for the restore or rehabilitation of a house or its contents, are usually excluded from gross earnings. Extra aid can also be accessible for members in retirement plans or IRAs, comparable to particular catastrophe distributions and hardship withdrawals.
