The Kentucky Department of Revenue will honor recently announced Internal Revenue Service special tax relief for taxpayers in the Presidential Disaster Areas who were victims of severe storms, tornadoes, straight-line winds and flooding that started on Feb. 29. As of March 13, President Barack Obama has declared Bath, Campbell, Carroll, Grant, Grayson, Johnson, Kenton, LaRue, Laurel, Lawrence, Magoffin, Martin, Menifee, Montgomery, Morgan, Ohio, Pendleton, Rowan, Russell, Trimble and Wolfe counties federal disaster areas.
Individuals who reside or have a business in these counties may qualify for tax relief, according to a press release from the state's Finance and Administration Cabinet.
As a result, the IRS is postponing certain tax deadlines for those taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Feb. 29, and on or before May 31, have been postponed to May 31.
This includes an extension of the April 17 deadline for filing 2011 individual income tax returns, making income tax payments and making 2011 contributions to individual retirement accounts (IRA).
In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Feb. 29, and on or before March 15, as long as the deposits are made by March 15.
Additional information regarding this special tax relief may be found at www.irs.gov.
Under the provisions of KRS 131.081 (11), Kentucky honors federal extensions related to disaster relief for filing of income tax returns, including payment of tax due.
Late filing and payment penalties will be waived for those affected taxpayers who have an original or extended income tax filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period. Kentucky’s tax laws have no provision for the waiver of interest.
Taxpayers are advised to label the top margin of the tax forms filed under this relief provision in large, red letters with the words “February 2012 Storms.” Taxpayers requiring assistance with penalty waivers or additional tax information may contact the Department of Revenue at (502) 564-4581.
This extension to file and pay taxes does not apply to sales and other tax types. However, taxpayers who lost their sales tax return and need a replacement may contact the DOR Division of Sales and Use Tax at (502) 564-5170 for assistance. Taxpayers who are having difficulty meeting filing deadlines for their sales tax returns may also contact the Division of Sales and Use Tax which will work with them on a case-by-case basis.