Due to the recent extraordinary storm, the IRS has provided tax relief to Hurricane Harvey victims residing in the affected areas. The relief provides an additional extension of time to file most federal income tax filings and payments until January 31, 2018. The relief is intended to apply to filing deadlines and payment requirements that were originally due starting August 23, 2017.
The tax relief is currently available to Texas counties of Aransas, Austin, Bastrop, Bee, Brazoria, Calhoun, Chambers, Colorado, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Hardin, Harris, Jackson, Jasper, Jefferson, Karnes, Kleberg, Lavaca, Lee, Liberty, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio, Tyler, Victoria, Waller, Walker and Wharton. The IRS may expand this listing in the future.
You will not need to contact the IRS to get this relief. It will automatically be provided to any taxpayers with an address located in the above counties. You can view the announcement from the IRS here.
Additionally, for those of you that incurred a material casualty loss there may be some opportunity to claim this loss on your 2016 tax filing, instead of waiting until your 2017 filing.
The IRS issued Announcement 2017-11, Relief for victims of Hurricane Harvey, for plan sponsors who want to provide an option for employees to gain access to their retirement assets as a result of the devastation caused by the hurricane. The IRS announced that plans can make loans and hardship/unforeseeable emergency distributions to victims of Hurricane Harvey and members of their families who live or work in the disaster area.
The Department of Labor has also announced relief measures for plan sponsors impacted by the hurricane. See Release Number 17-1216-NAT for additional information.
Please let us know if we can answer any questions, or be of any assistance to you. As always, contact your Weinstein Spira advisor at (713) 622-7000 or via email.