Victims of Hurricane Ida now have until January 3, 2022, to file various individual and business tax returns and make tax payments. The relief applies to taxpayers in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual or public assistance. Currently, this relief applies to the entire state of Louisiana but other Ida-impacted localities in neighboring states may be added.
The relief postpones various tax filing and payment deadlines that occurred starting on August 26, 2021. This means that individuals who had a valid extension to file their 2020 tax return by October 15, 2021, will now have until January 3, 2022, to file those returns. However, the relief does not extend to the payments owed on those returns as those payments were due prior to August 26. The relief also extends the time to pay the quarterly estimated tax payments due on September 15.
Individuals and businesses who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the disaster occurred (the 2021 return normally filed in 2022) or the return for the prior year (2020) which may allow a taxpayer to benefit from a refund sooner. Taxpayers should use the FEMA declaration number 4611 for Hurricane Ida losses in Louisiana when claiming a loss.
More information about the various returns and taxes that are extended by this announcement can be found on the IRS disaster relief page: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations