The IRS has extended the due dates for filing individual and business tax returns and making tax payments to February 15, 2023, for victims of Hurricane Fiona.

The extension applies to taxpayers who reside or have a business in the federally declared disaster area, which includes all 78 municipalities of Puerto Rico. Taxpayers that are not located in the disaster area but have records in the disaster area also qualify for the extension.

The February 15, 2023 due date applies to:

• Individuals with an extension to file their 2021 tax return on or before October 17, 2022
• Quarterly estimated tax payments due January 17, 2023
• Quarterly payroll and excise tax returns due October 31, 2022, and January 31, 2023
• Calendar-year corporations with an extension to October 17, 2022 to file their 2021 tax returns
• Estate and trust income tax returns
• Estate, gift and generation-skipping transfer tax returns
• Partnership, S corporation and trust returns
• Annual information returns of tax-exempt organizations

Businesses with an original or extended due date after September 17, 2022, also have additional time to file their returns. The IRS also extended the due date to February 15, 2023, for time-sensitive actions that are described in Treas. Reg. Section 301.7508A-1(c)(1) and Revenue Procedure 2018-58 and must be completed on or after September 17, 2022 and before February 15, 2023.

The IRS will abate penalties on payroll and excise tax deposits due on or after September 17, 2022, and before October 3, 2022, if the tax deposits are made by October 3, 2022.

Taxpayers in the federally declared disaster area may claim disaster-related casualty losses on their federal income tax return. Taxpayers claiming a disaster loss due to Hurricane Fiona should put "Puerto Rico Hurricane Fiona" in bold at the top of Form 4864, Casualties and Thefts.

Implications

Businesses should note that the IRS disaster relief includes penalty relief for late deposits of excise and payroll tax that were due between September 17 and October 3, 2022, provided they are made no later than October 3, 2022.

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