IRS Extends 2021 Tax Filing Deadline for Kentucky Tornado Victims

Editorial team of TFX

• 27.12.21 • 5 min read

The Internal Revenue Service said that victims of this weekend's storms in Kentucky will have the last date to file taxes for 2021 on May 16, 2022, to file various individual and corporate tax forms and make tax payments.

A massive, long-tracked tornado struck Western Kentucky on December 10, 2021, causing serious to catastrophic damage in a number of towns, including Mayfield, Benton, Dawson Springs, and Bremen, according to the National Weather Service. The tornado traveled through eleven counties in the Jackson Purchase and Western Coal Field regions, covering a distance of 165.7 miles (266.7 km), and was engulfed in rain at various points. There were 58 verified fatalities as a result of this tornado, which was the deadliest and longest-tracked tornado in an outbreak that produced multiple severe tornadoes throughout several states.

Following the latest disaster proclamation issued by the Federal Emergency Management Agency (FEMA), the IRS is providing this assistance to taxpayers who have been impacted by storms, tornadoes, and flooding that began on December 10 in parts of Kentucky and have continued since then, by extending the deadline for tax returns for  2021.

Residents and business owners in the following counties are currently eligible for tax relief: Caldwell, Christian, Fulton, Graves; Hart; Hickman; Hopkins; Logan; Lyon; Marshall; Ohio; Taylor; Warren. However, the IRS will grant the same compensation to any additional localities in Kentucky or surrounding states that have been designated by FEMA. The most up-to-date list of qualified municipalities can always be found on the disaster relief portion of the IRS.gov website.

"As Kentucky families and businesses continue to faithfully follow public health guidance to help reduce the spread of the coronavirus while many are also recovering from widespread natural disasters that have impacted the Commonwealth over the last month, I am pleased to grant some extra time to prepare, file and pay state taxes," said Kentucky Gov. Andy Beshear.

"Families who are expecting a refund can be assured that our Department of Revenue staff are diligently working to swiftly process returns and get those dollars back to Kentuckians as quickly as possible."

The tax relief postpones a number of tax filing and payment deadlines that were set to take effect on December 10, 2021, and earlier. As a result, individuals and businesses who were affected will have until May 16 to complete their tax returns and pay any taxes that were initially due during this time frame. This comprises individual income tax returns for 2021 that are due on April 18, as well as numerous business returns for 2021 that are typically due on March 15 and April 18. This means, among other things, that impacted taxpayers will have until May 16 to make IRA contributions for the year 2021.

Farmers who elect to forego making anticipated tax payments and who ordinarily file their returns by March 1 will now have until May 16, 2022, to file their 2021 return and pay any tax that may be owed.

The deadline of May 16 also applies to quarterly estimated income tax payments and dates, which are due on January 18 and April 18 of the following year. It also implies that individual taxpayers can forego making the fourth quarter estimated tax payment, which is ordinarily due on January 18, 2022, and instead include it with the 2021 return they submit on or before May 16, 2021, instead of making the payment on its own. Aside from that, the quarterly payroll and excise tax returns that were formerly due on January 31 and May 2, 2022, respectively, are now due on May 16.

Penalty reductions on payroll and excise tax deposits that are due on or after December 10 and before December 27 will be applied if the payments are received before the deadline of December 27, 2021.

The IRS disaster relief page contains information on various returns, payments, and tax-related actions that may be eligible for the additional time period.

The IRS immediately grants filing and penalty relief to any taxpayer who has an IRS address of record in the disaster region. As a result, taxpayers will not be required to contact the agency in order to receive this relief. Taxpayers who are subject to late filing or late payment penalties from the IRS and whose original or extended filing, payment, or deposit due date falls within the postponement period are encouraged to call the toll-free number listed on the notice to request an abatement.

Additionally, the IRS will assist with any taxpayer who lives outside of the catastrophe area but whose records are required to meet a deadline that occurs during the deferral period are located in the impacted area to ensure that they make the deadline. Taxpayers who qualify for disaster aid but do not live in the disaster region should call the Internal Revenue Service at 866-562-5227. Additionally, employees aiding with relief efforts who are linked with a recognized government or philanthropic organization are included in this category.

If you live or operate your business in a federally declared disaster area and have suffered uninsured or unreimbursed disaster-related losses, you have the option of claiming them on either the tax return for the year the loss occurred (in this case, the 2021 return is normally filed the following year) or the tax return for the prior year (in this case, the 2020 return normally filed the following year). Make sure to include the FEMA declaration number – 4630DR – on any tax return in which you claim a financial loss. For more information, see Publication 547.

As part of coordinated government response to damage caused by these storms, FEMA has issued tax relief that has been determined to be reasonable based on local damage estimates. DisasterAssistance.gov is a useful resource for information on catastrophe recovery.