Many Victims of Hurricane Matthew Qualify for Late-Filing Penalty Relief

The Internal Revenue Service today advised taxpayers affected by Hurricane Matthew but not yet covered by a federal disaster declaration with individual assistance that they may qualify for relief from penalties if they are unable to meet Monday’s extended deadline for filing 2015 tax returns.

The IRS noted that additional individual assistance areas could be added to the federal disaster area in coming days based on continuing damage assessments by the Federal Emergency Management Agency (FEMA). These additional disaster declarations will pave the way for additional extensions and other relief from the IRS. This means that the IRS will automatically provide retroactive extensions and other relief to any locality added to the federal disaster area at a later date. In areas with disaster declarations for individual assistance, taxpayers will have until  March 15, 2017 to file returns otherwise due on Monday, October  17.

“The hurricane and flooding have hit many different states hard, and the timing of this is especially tough for taxpayers and tax professionals planning to file by the Oct. 17 extension deadline,” said IRS Commissioner John Koskinen. “We have been watching this situation unfold and remain in close touch with FEMA. We will do everything we can to work with taxpayers who are in affected areas.”

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Double Check ACA Information on Your Return

If you received an extension of time to file your 2015 federal tax return, you have until Oct. 17 to double check your return and information on it that is related to the Affordable Care Act. The health care law includes  the individual shared responsibility provision and the premium tax credit that may affect your return.

Many people already have minimum essential coverage. If this applies to you, you'll simply report your coverage when you file your tax return by checking a box on your Form 1040, 1040A or 1040EZ.

Most taxpayers simply need to check a box on their tax return to indicate you had health coverage for all of 2015. For any month that you or anyone in your family did not have minimum essential coverage, you need to either claim or report a coverage exemption or make a shared responsibility payment when you file your tax return.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999