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UPDATE: The Taxman Still Cometh, but It's a Little Later for Some Kentuckians Impacted by Severe Storms

UPDATE: The IRS has announced tax relief for taxpayers in the following additional counties due to severe storms and flooding that began February 27, 2021: Anderson, Bell, Calloway, Clark, Edmonson, Fayette, Graves, Greenup, Harlan, Jessamine, Laurel, Leslie, Letcher, Madison, Menifee, Owsley, Perry, Pike, Powell, Pulaski, Union, Warren, Whitley and Woodford counties. Additionally, the Kentucky Department of Revenue has agreed to apply the same rules as the IRS for filing and payment of income tax withholding for these taxpayers. 

Kentucky residents and businesses impacted by late-February storms and flooding can cross looming tax deadlines off their immediate list of worries. For those in impacted counties, the IRS has extended certain deadlines falling on or after February 27, 2021 to June 30, 2021. These include:

  • 2020 individual income tax returns and paying any tax due, previously due May 17
  • 2020 IRA contributions
  • First quarter estimated tax payment, normally due on April 15
  • Second quarter payment, normally due on June 15
  • Quarterly payroll and excise tax returns normally due on April 30, 2021

Park Bench in Flood WatersIn addition, the extension applies to tax-exempt organizations operating on a calendar-year basis, that have a 2020 return due on May 17, 2021. Also, penalties on deposits due on or after February 27, 2021 and before March 15, 2021, will be abated as long as the tax deposits were made by March 15, 2021.

Taxpayers eligible for the deadline extension to file returns, pay taxes and perform other time-sensitive actions include individuals who live, and businesses whose principal place of business is located, in the covered disaster area (by county): 

* Counties added as of this update.

  • Anderson*
  • Edmonson*
  • Jessamine*
  • Madison*
  • Pike
  • Bell*
  • Elliott
  • Johnson
  • Magoffin
  • Powell
  • Boyd
  • Estill
  • Knott
  • Marion
  • Pulaski
  • Breathitt
  • Fayette*
  • Knox
  • Martin
  • Rockcastle
  • Calloway*
  • Floyd
  • Laurel*
  • Mason
  • Union*
  • Carter*
  • Franklin
  • Lawrence
  • Menifee*
  • Warren*
  • Casey
  • Graves*
  • Lee
  • Morgan
  • Whitley*
  • Clark*
  • Greenup*
  • Leslie*
  • Ohio
  • Wolfe
  • Clay
  • Harlan*
  • Letcher*
  • Owsley
  • Woodford*
  • Cumberland
  • Jackson
  • Lincoln
  • Perry*
 

*Counties added as of this update.

Taxpayers not in the covered disaster area but whose necessary records are in the covered disaster area are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

If you have any questions about filing accommodations for disaster relief or other tax questions, please contact your McBrayer attorney.

Kenton BallKenton L. Ball is Of Counsel with McBrayer law in the Lexington office.  Mr. Ball focuses his practice areas to taxation, tax compliance, tax controversy, tax planning, transaction tax, and corporate & business tax law.  He can be reached at kball@mcbrayerfirm.com or
(859) 231-8780, ext. 1222.  We take a team approach to deliver effective counsel to all our clients, so other attorneys in the firm may perform these services as well.

This article does not constitute legal advice.

Lexington, KYLouisville, KYFrankfort, KY: MML&K Government SolutionsWashington, D.C.