Residents of certain Michigan counties can wait until November 1, 2021, to file federal tax returns and make tax payments that would normally be due before that date. The IRS extended the deadlines because of the severe storms, flooding and tornadoes that began on June 25, 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 Macomb, Oakland, Washtenaw and Wayne Counties.
Various federal tax filing and payment due dates for individuals and businesses from June 25 to October 31 will be shifted to November 1, 2021. Although this will not include tax payments related to 2020 returns that were due on May 17, 2021, it will include:
Quarterly estimated income tax payments normally due on September 15;Quarterly payroll and excise tax returns ordinarily due on August 2;Valid extension filings normally due on October 15; andFiling of Form 2290, Heavy Highway Vehicle Use Tax Return, normally due on August 31.
Penalties on payroll and excise tax deposits due from June 25 to July 12 will also be waived if the deposits were made by July 12, 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 storm. When requesting copies of a tax return or a tax return transcript, write “Michigan Severe Storms, Flooding, and Tornadoes” 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 Michigan, 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 4607-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 (“Michigan Severe Storms, Flooding, and Tornadoes”) in bold letters at the top of the form. See IRS Publication 547 for details.