Tennessee Victims of Severe Storms, Tornadoes and Flooding Granted Tax Relief (TN-2020-01)

The president has declared a federal disaster area in Tennessee. The disaster is due to severe storms, tornadoes and flooding, which began on March 3, 2020. The disaster area includes:

Davidson
Putnam
Wilson

Thus, taxpayers who live or have a business in the disaster area may qualify for tax relief.

Tennessee Filing Deadlines Extended

The IRS extended certain deadlines falling on or after March 3, 2020, and before July 15, 2020, to July 15, 2020. The extension includes filing for most returns, including:

individual, corporate, estate and trust income tax returns;
partnership and S corporation income tax returns;
estate, gift and generation-skipping transfer tax returns;
the Form 5500 series returns, and
employment and certain excise tax returns.

However, the extension does not include information returns in the Form W-2, 1098, or 1099 series or Forms 1042-S or 8027.

Tennessee Payment Deadlines Extended

Also, the relief includes extra time to make tax payments. This includes estimated tax payments due on or after March 3, 2020, and before July 15, 2020. In addition, taxpayers had until July 15, 2020, to perform other time-sensitive actions due on or after March 3, 2020, and before July 15, 2020.

The IRS excused late penalties for employment and excise tax deposits due on or after March 3, 2020, and before March 18, 2020. But, the taxpayer must make the deposits by March 18, 2020.

Casualty Losses

Affected taxpayers can claim disaster-related casualty losses on their federal income tax return. Taxpayers may get relief sooner by claiming their losses on their 2019 or 2020 return. Individuals may deduct personal property losses not covered by insurance or other reimbursements.

Taxpayers claiming a disaster loss on their 2019 or 2020 return should write the disaster designation: \”Tennessee Severe Storms, Tornadoes and Flooding\” at the top of the return. This will allow the IRS to speed refund processing.

Also, the IRS will provide affected taxpayers with copies of prior year returns without charge. To get this expedited service, taxpayers should:

1. add the disaster designation at the top of Form 4506, Request for a Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, and

2. submit it to the IRS.