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Posted

If Florida taxpayer qualifies for extension until Oct 15 2024 of filing and making IRA contributions for 2023 return based on federally declared disaster, and before that due date, another disaster hit, does that Oct 2024 deadline for 2023 return get extended into 2025?

This is a real taxpayer, but not my client.   Taxpayer wants to make a 2023 IRA contribution and claim that they are still able to do so under the disaster declaration as their due date of the return was extended a second time.   I know that they could have made the contribution up to Oct 2024, but I am not sure you can "Stack" those declarations.

Tom
Longview, TX

 

Posted (edited)

Maybe, but it may depend specifically on which disaster and what exactly was extended. The IRS publishes guidance for each specific disaster that has all the details.

I skimmed through and found one for FL related to Hurricanes Milton and then Debbie that may be the one you are asking about. IF that is the issue, then the answer appears to be yes if your client had a valid extension until 10/15/24. It was the 12th bullet point down listed under 2024 that encompasses all of FL relief, and there were other IRs for each of the specific disasters below it. Anyway, the one linked does "stack" the relief, as you put it.

https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-milton-various-deadlines-postponed-to-may-1-2025-in-all-of-florida

In the 4th paragraph under "Affected Taxpayers" it refers back to  Rev Proc 2018-58 for the additional deadlines for payments to be extended and IRA contribs is one of them. 

 

 

 

Edited by jklcpa
fixed typos only
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Posted (edited)

Here's the whole page of IRS newsroom announcements by year, if that isn't the one:

https://www.irs.gov/newsroom/tax-relief-in-disaster-situations.

Also, here's a link to Rev Proc 2018-58 . link to it. Look in Sec 8, item 11 where it says this:

Quote

11. Sec. 219(f)(3) A contribution to an IRA shall be deemed to have been
made by the taxpayer on the last day of the preceding
taxable year if the contribution is made on account of such
taxable year and is made not later than the time prescribed
for filing the return (not including extensions thereof) for
such taxable year.

 

Edited by jklcpa
fixed stuff, added link
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Posted
23 minutes ago, jklcpa said:

It was the 12th bullet point down listed under 2024 that encompasses all of FL relief, and there were other IRs for each of the specific disasters below it. Anyway, the one linked does "stack" the relief, as you put it.

https://www.irs.gov/newsroom/irs-announces-tax-relief-for-victims-of-milton-various-deadlines-postponed-to-may-1-2025-in-all-of-florida

 

How do you find this stuff?   I skimmed the pages as well and I never saw anything.   I suck at searching.

You are the best, as always.

Tom
Longview, TX

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Posted
3 minutes ago, BulldogTom said:

How do you find this stuff?   I skimmed the pages as well and I never saw anything.   I suck at searching.

You are the best, as always.

Tom
Longview, TX

Sometimes I'm lucky with searches, I guess.

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Posted

I live in Myrtle Beach SC and we are in those disaster areas. The filing deadline is extended until May 1, 2025. Yes, that means the IRA you are mentioning. Beware, I filed my LLC 1065 after Sept 15th that qualified for an extension and still got a late filing penalty. I called the IRS and got it taken care of but....... Funny thing was the notice contained an insert alerting me that I am in a declared disaster area and may qualify for relief. 

No Judy I don't think your lucky with searches and you are just plain good at it.

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Posted
On 1/23/2025 at 10:41 AM, Terry D EA said:

I live in Myrtle Beach SC and we are in those disaster areas. The filing deadline is extended until May 1, 2025. Yes, that means the IRA you are mentioning. Beware, I filed my LLC 1065 after Sept 15th that qualified for an extension and still got a late filing penalty. I called the IRS and got it taken care of but....... Funny thing was the notice contained an insert alerting me that I am in a declared disaster area and may qualify for relief. 

No Judy I don't think your lucky with searches and you are just plain good at it.

I think IRS goes by zip code and would be the reason you received that insert with the notice.  I am curious though, did you indicate the disaster area and reason for the late filing and then IRS ignored that?  If using Drake, that would be entered on the MISC screen.

 

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Posted

On 1/24/2025 at 12:01 PM, jklcpa said:

I think IRS goes by zip code and would be the reason you received that insert with the notice.  I am curious though, did you indicate the disaster area and reason for the late filing and then IRS ignored that?  If using Drake, that would be entered on the MISC screen.

 

The use of the zip code is never mentioned. All of the documents issued by the IRS indicated all 46 counties of SC. No, I did not give any reasons for the late filing. I do use Drake and really never thought of using the MISC screen for this. Good to know though for the future. I just did a terrible thing and assumed the IRS would follow their own rules. SC did without incident. No worries as it will not happen again. I have managed to get into a bad habit of putting my own return on extension and leaving it until the very last to take care of everyone else. 

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Posted
19 minutes ago, Terry D EA said:

The use of the zip code is never mentioned. All of the documents issued by the IRS indicated all 46 counties of SC. No, I did not give any reasons for the late filing. I do use Drake and really never thought of using the MISC screen for this. Good to know though for the future. I just did a terrible thing and assumed the IRS would follow their own rules. SC did without incident. No worries as it will not happen again. I have managed to get into a bad habit of putting my own return on extension and leaving it until the very last to take care of everyone else. 

re: the zip code, I realize that the official pronouncements indicate the county. I only mentioned the zip code because the IRS used that to include that ever so helpful insert for you to consider the disaster relief for your late filing. Without indicating why you filed late, the IRS' system just saw a late return but based on your zip code, said you might be able to use the disaster relief as the reason.  Your post trigger the memory of paper-filed returns with notations at the top such as "filed pursuant to blah, blah" and was the reason I asked.

My return is usually one of the earlier ones filed because I use it as the test.

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Posted

Judy,

After your earlier post, I did look into Drake and there is definitely a space to enter the reason for the late filing. So, it totally falls on me. Nonetheless, the IRS forgave the penalty. Like, Lee, mine is now first and is nearly finished for 2024. Like everything else in this business, you gotta take time for yourself. Thanks for all the information.

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