THOUSANDS of people affected by the Colorado wildfires are getting a little relief from the Internal Revenue Service (IRS).
The IRS has extended the 2021 tax filing deadline for individuals and businesses affected by the fire.
Fire destroyed nearly 1,000 homes in the suburbs between Denver and Boulder on December 30, 2021.
Search teams are still looking for the two, while investigators are working to figure out what started. big fire burned about 6,000 acres.
Important dates adjusted
Affected individuals and businesses will have until May 16, 2022 to file and pay any taxes.
The tax relief has postponed various tax and tax payment deadlines starting December 30, 2021.
This includes Personal income tax return 2021 due on April 18th, as well as the normal 2021 various business activities returning on March 15th and April 18th.
It also means that affected taxpayers will have until May 16 to contribute their 2021 IRAs.
For business owners, quarterly payroll tax returns that are normally due on January 31 and May 2, 2022, are also due on May 16.
The excise tax return is also effective May 16. An excise tax is a tax levied on various goods, services and activities.
Penalties for wages and excise deposits due on or after December 30, 2021 and before January 14, 2022 will be waived as long as the deposits are made by the date January 14.
Who is eligible for a tax extension?
The IRS is providing this relief to taxpayers impacted by the wildfires that began December 30, 2021, in parts of Colorado.
The IRS automatically offers filing and penalty relief to any taxpayer whose IRS address on file is located in a disaster area.
Taxpayers do not need to contact the agency to receive this relief.
Relief available for affected taxpayers people who live or do business in Boulder County.
The IRS said it would provide similar relief to any other Colorado locality designated by the Federal Emergency Management Agency (FEMA).
Farmers who choose to waive estimated tax payments and normally file returns by March 1 will now have until May 16, 2022 to file their 2021 returns and pay any taxes due.
The IRS will work with any taxpayer who lives outside of the disaster area but has the necessary records to meet deadlines located in the affected area.
Taxpayers eligible for relief living outside the disaster area should contact the IRS at 866-562-5227.
This also includes staff supporting relief efforts affiliated with a government or recognized charity.
What should you do when you apply?
Individuals and businesses in a federally declared disaster area that have suffered uninsured or unreimbursed disaster-related damage may elect to claim for the year the loss occurred or to reimburse last year.
The IRS requires the FEMA declaration number, 4634DR, on any return claiming a loss.
The IRS establishes a disaster relief page with profit and payment details.
This isn’t the first time the IRS has offered extensions.
It recently extended the tax deadline for deadly Midwest tornadoes to December.
We explain Which states have tax filing extensions?.
Plus, much more about Important letter from the IRS that you need to keep for your 2021 tax return.
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https://www.the-sun.com/money/4393467/irs-extends-tax-deadline-colorado-wildfire-victims/ IRS extends tax payment deadline for thousands of people due to Colorado wildfires