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IRS Announces Tax Relief for Kentucky Flood Victims

IRS Announces Tax Relief for Kentucky Flood Victims

This summer, the country has been hammered by extreme weather—from oppressive heat waves to torrential rains. In response to deadly flooding in Eastern Kentucky, the Internal Revenue Service announced tax relief for counties the Federal Emergency Management Agency declared disaster areas.  

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What is included in the Kentucky tax relief?

Deadlines for filing tax returns and making payments due on or after July 26, 2022, are pushed back to November 15, 2022, for declared disaster areas in Kentucky. Here are some of the deadlines affected by the tax relief:

  • August 1 quarterly payroll and excise tax returns
  • September 15 quarterly estimated income tax payments
  • October 17 individual extensions
  • October 31 quarterly payroll and excise tax returns

The IRS also notes they will abate “penalties on payroll and excise tax deposits due on or after July 26 and before August 10 … as long as the deposits are made by August 10, 2022.” Further, the agency says uninsured and unreimbursed losses from the flooding can be claimed on an individual or business return for either of the following years:

  • The year the loss occurred (in this instance, the 2022 return normally filed next year)
  • The return for the prior year (2021)

For more information about affected deadlines, visit “Disaster Assistance and Emergency Relief for Individuals and Businesses” on IRS.gov.

Who will receive this tax relief?

Taxpayers with a residence or business in declared disaster areas automatically receive this tax relief without taking any specific action. Currently, those counties include:

  • Breathitt
  • Clay
  • Floyd
  • Johnson
  • Knott
  • Leslie
  • Letcher
  • Magoffin
  • Martin
  • Owsley
  • Perry
  • Pike
  • Wolfe

As FEMA continues to assess the situation in Kentucky, they may add counties to the list of tax-relief beneficiaries. We will update this page if additional areas are announced.

Source: IR-2022-145

Ryan Norton

Whether designing superheroes, penciling caricatures, or just doodling, I always knew I was going to earn some sort of art degree while in college. That was my goal before I decided to trade Edgar Degas for Edgar Allan Poe during a Freshman English class. The BA in English soon morphed into a double-major in English and Philosophy, eventually becoming an MA in English. It only makes sense that I learned of a writing opportunity for a local marketing firm while teaching a first-year college English course. Before I knew it, I was writing and editing tax-related articles for Taxing Subjects, and this has been my home since 2014.