December 2018 Client Profile

Mark runs a small architectural firm in a North Carolina region that Hurricane Florence flooded badly, and he hasn’t been able to file his company or individual federal taxes, including his 2018 third-quarter estimated tax returns. Will he still owe a penalty when he files and pays?

The IRS announced that Hurricane Florence victims in parts of North Carolina and elsewhere in federally declared disaster areas have until Jan. 31, 2019 to file and pay some individual and business taxes that were due after Sept. 7.

This includes third-quarter estimated income tax payments that were due on Sept. 17, 2018 and quarterly payroll and excise tax returns normally due on Oct. 31, 2018. Taxpayers who had a valid extension to file their 2017 returns
by Oct. 15, 2018 also have more time to file.

Additionally, Mark may be able to deduct Florence-related casualty losses on his 2018 tax return. He should talk to his tax professional as soon as feasible to learn more about meeting tax obligations during this trying time.

Client Profile is based on a hypothetical situation. The solutions discussed here may or may not be appropriate for you.