The IRS has granted relief on specific tax deadlines to individuals in Vermont who have been impacted by the recent flooding. This relief was announced in IRS News Release IR-2023-125.[1]  Generally, the relief will provide individuals impacted by the recent flooding in Vermont with an extended deadline until November 15, 2023, to file any tax return that was originally due after July 9, 2023, and before November 15, 2023.

Individuals and Entities Eligible for Relief

The news release outlines the eligibility criteria for individuals who qualify for the provided relief as follows:

The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA), including postponing various tax-filing and tax-payment deadlines for any taxpayer with an address of record in the disaster area. This means that individuals and households that reside or have a business in any of Vermont's 14 counties qualify for tax relief. The current list of eligible localities is always available on the disaster relief page on IRS.gov.[2]

Returns and Payments that Qualify for the November 15 Deadline

The tax relief postpones several tax filing and payment deadlines that have occurred since July 9, 2023. As a result, individuals and businesses affected by the recent flooding will now have until November 15 to both file their returns and pay any taxes that were initially due between July 9 and November 15.[3]

The IRS has provided a list of eligible returns and payments for the tax relief, which includes the following:

• Individuals who had a valid extension to file their 2022 return due to run out on Oct. 16, 2023. The IRS noted, however, that because tax payments related to these 2022 returns were due on April 18, 2023, those payments are not eligible for this relief.

• Quarterly estimated income tax payments, normally due on Sept. 15

• Quarterly payroll and excise tax returns, normally due on July 31 and Oct. 31

• Businesses with an original or extended due date including, among others, calendar-year partnerships and S corporations whose 2022 extensions run out on Sept. 15, and calendar-year corporations whose 2022 extensions run out on Oct. 16.[4]

Furthermore, penalties on payroll and excise tax deposits that were due after July 9 but before July 25 will be waived, provided that the deposits are made by July 25.[5]

The IRS notes that this is not a complete list of returns, payments and tax-related actions that qualify for additional, referring taxpayers to the IRS disaster relief page[6] for details.

The IRS states that relief should be automatically provided based on the taxpayer's address being located in an affected county. However, the agency also provides instructions on what to do if a taxpayer receives a notice regarding a late payment or late filing penalty.

The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Because it is automatic, these taxpayers need not contact the agency to get the relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.[7]

The news release provides the following instructions for taxpayers who are located outside the designated disaster area but have their records necessary to meet the deadline located within the disaster area:

In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.[8]

Disaster Loss Claims

The news release concludes by offering information on how individuals can claim disaster losses on their income tax return.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2023 return normally filed next year), or the return for the prior year (2022). Be sure to write the FEMA declaration number – 3595-EM − on any return claiming a loss. See Publication 547[9] for details.[10]

[1] “IRS: Vermont flooding victims now eligible for tax relief; Oct. 16 deadline, other dates extended to Nov. 15,” IR-2023-125, July 13, 2023, https://www.irs.gov/newsroom/irs-vermont-flooding-victims-now-eligible-for-tax-relief-oct-16-deadline-other-dates-extended-to-nov-15 (retrieved July 14, 2023)

[2] “IRS: Vermont flooding victims now eligible for tax relief; Oct. 16 deadline, other dates extended to Nov. 15,” IR-2023-125, July 13, 2023

[3] “IRS: Vermont flooding victims now eligible for tax relief; Oct. 16 deadline, other dates extended to Nov. 15,” IR-2023-125, July 13, 2023

[4] “IRS: Vermont flooding victims now eligible for tax relief; Oct. 16 deadline, other dates extended to Nov. 15,” IR-2023-125, July 13, 2023

[5] “IRS: Vermont flooding victims now eligible for tax relief; Oct. 16 deadline, other dates extended to Nov. 15,” IR-2023-125, July 13, 2023

[6] “Disaster Assistance and Emergency Relief for Individuals and Businesses,” IRS Website, June 16, 2023 revision, https://www.irs.gov/businesses/small-businesses-self-employed/disaster-assistance-and-emergency-relief-for-individuals-and-businesses (retrieved July 14, 2023)

[7] “IRS: Vermont flooding victims now eligible for tax relief; Oct. 16 deadline, other dates extended to Nov. 15,” IR-2023-125, July 13, 2023

[8] “IRS: Vermont flooding victims now eligible for tax relief; Oct. 16 deadline, other dates extended to Nov. 15,” IR-2023-125, July 13, 2023

[9] Publication 547 (2022), Casualties, Disasters, and Thefts, https://www.irs.gov/publications/p547 (retrieved July 14, 2023)

[10] “IRS: Vermont flooding victims now eligible for tax relief; Oct. 16 deadline, other dates extended to Nov. 15,” IR-2023-125, July 13, 2023