Important Alert: The IRS Extends the Tax Deadline for North and South Carolina Taxpayers Impacted by Hurricane Ian
Update: On October 7, 2022, the North Carolina Department of Revenue (NCDOR) issued guidance on the relief they would be providing to NC taxpayers in response to the IRS relief that has been granted. Click Here – for additional information on the relief provided by the NCDOR.
Update: On October 10, 2022, the South Carolina Department of Revenue (SCDOR) issued guidance on the relief they would be providing to SC taxpayers in response to the IRS relief that has been granted. Click Here – for additional information on the relief provided by the SCDOR.
As a result of the impacts of Hurricane Ian in the Carolinas, the IRS has announced that they will be providing tax relief to taxpayers in both North and South Carolina.
Please note that the relief provided by the IRS is only applicable to a taxpayer’s federal tax filing and payment obligations. This relief does not impact any tax filing or payment deadline that exists for state tax purposes. Those deadlines will remain the same unless the states issue separate guidance. Because many state filings use the taxable income from the federal return as their starting point in calculating the state tax liability, while the IRS has granted relief for federal tax filings, in many cases the federal returns will still need to be timely completed in order to get the state return(s) accurately and timely filed.
The federal relief states that for all taxpayers who reside in or whose principal place of business is located within North or South Carolina, the IRS is automatically extending a wide variety of filing and payment deadlines to February 15, 2023.
For North Carolina taxpayers, certain deadlines falling on or after September 28, 2022, and before February 15, 2023, are now postponed through February 15, 2023.
For South Carolina taxpayers, certain deadlines falling on or after September 25, 2022, and before February 15, 2023, are now postponed through February 15, 2023.
This relief applies to a variety of different tax, and payment, deadlines that fall within the timeframes referenced above. The following are some of the more notable federal deadlines that are now extended to February 15, 2023:
• Taxpayers who have not yet filed their 2021 federal income tax return that is on extension and due October 15, 2022 are now due February 15, 2023. The IRS has noted that because the payment related to a 2021 individual tax return was due on April 17, 2022, any payment of tax due related to a 2021 individual tax return will not be eligible for relief and should be paid as soon as possible.
• Any estimated income tax payments due within the relief period. For example, both individual and calendar year corporations have 4th quarter federal estimated tax payments due within the relief period. Both of which will now be due February 15, 2023.
• Any business entity, including tax-exempt organizations, that have an original or extended tax return filing or payment deadline within the relief period. For example, many fiscal year-end taxpayers may have filing and/or payment deadlines that fall within this window that will now be extended to February 15, 2023.
As noted above, at this time, neither North Carolina or South Carolina has issued any guidance stating that they will be extending the filing (or payment) deadlines for any state income tax returns or payments. Therefore, all state filings are still due by their original, or extended, deadline. This means that while the federal returns may now be due February 15, 2023, it will likely still need to be completed by the deadline that existed prior to this relief, in order to accurately and timely file any required state return(s).
If you have any questions about how this relief impacts you or your business, please don’t hesitate to reach out to your trusted BRC tax advisor.