Individuals and businesses located in the counties of Bay, Gladwin, Isabella and Midland Counties and the Saginaw Chippewa Indian Tribe within Isabella County may qualify for tax relief due to the severe flooding which occurred June, 2017. Those areas have been given Federal disaster status, which allows certain benefits to those affected.
The IRS has authority to postpone certain deadlines falling on or after June 22, 2017 up until October 31, 2017. This includes income tax returns with an original or extended due date between June 22, 2017 and October 31, 2017, estimated tax payment due September 15, 2017 and quarterly payroll tax returns which were due July 31, 2017.
For those who experienced significant damage due to the flood, casualty losses may be claimed on their tax returns to offset taxable income. Because our area received the Federal disaster declaration, taxpayers may choose whether to claim the loss on an amended 2016 return to obtain a speedier refund, or on their 2017 return. Measurement of the loss is very specific, and any reimbursements, such as insurance and FEMA payments, reduce the deductible loss. Also, you must be able to itemize deductions on your Federal income tax return to receive a tax reduction benefit from the loss.
Below is a link to the IRS notice dated August 3, 2017 providing more detailed information. If you feel any of the tax relief provisions can apply to your situation, please contact our office for assistance.