MS-2023-02, March 27, 2023

      Victims of severe storms, straight-line winds and tornadoes in Mississippi from March 24, 2023, to March 25, 2023, now have until July 31, 2023, to file various individual and business tax returns and make tax payments. The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief.

     Following the disaster declaration issued by the Federal Emergency Management Agency, individuals and households affected by severe storms, straight-line winds and tornadoes that reside or have a business in Carroll, Humphreys, Monroe, and Sharkey counties qualify for tax relief.

     The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after March 24, 2023, and before July 31, 2023, are granted additional time to file through July 31, 2023. As a result, affected individuals and businesses will have until July 31 to file returns and pay any taxes that were originally due during this period. This includes 2022 individual income tax returns due on April 18, as well as various 2022 business returns normally due on April 18. Among other things, this means that eligible taxpayers will have until July 31 to make 2022 contributions to their IRAs and health savings accounts.

     The July 31, 2023, deadline also applies to any payment normally due during this period, including quarterly estimated tax payments, quarterly payroll and excise tax returns. In addition, penalties on payroll and excise tax deposits due on or after March 24, 2023, and before April 10, 2023, will be abated as long as the tax deposits were made by April 10, 2023.

     If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.  The IRS encouraged affected taxpayers to file for an extension electronically by April 18, 2023, if the taxpayer feels more time is needed to complete the tax return before the July 31, 2023, deadline.

 MDOR Follows Federal Tornado Tax Relief Extensions  

      MDOR announced that Mississippi will follow federal extensions granted to victims of the severe weather. Taxpayers who reside or have a business in Carroll, Humphreys, Monroe, and Sharkey counties have until July 31, 2023, to file individual income tax returns, corporate income and franchise tax returns, pass-through entity tax returns and quarterly estimated payments that were originally due during this period.

     Any disaster area taxpayer who receives a penalty notice should contact the MDOR office at (601) 923-7700 to receive abatement. In addition, MDOR will work with any taxpayer who resides elsewhere but whose books, records, or tax professionals are located in the disaster areas.

     The extension does not automatically apply to any other tax types or payments due on prior liabilities. Relief may be granted on a case-by-case basis for these circumstances. Any taxpayer that is impacted and needs an extension should contact the MDOR office at the number above.