By Theresa Fry, Senior Vice President and Manager, IRA’s and Retirement PlanningPrint This Post
Hurricanes Florence and Michael have had a significant and devastating impact on many U.S. taxpayers. Individuals and businesses impacted by Hurricane Florence, located in certain counties of North Carolina, South Carolina, and Virginia, will have various tax deadlines postponed until January 31, 2019. Those impacted by Hurricane Michael, located in certain counties of Florida and Georgia will have them extended until February 28, 2019.
This includes additional time to file for individuals and businesses with a valid extension that were scheduled to file their 2017 income tax returns on October 15, 2018. More information can be found on the IRS website at www.irs.gov.
If you have been impacted by Hurricanes Florence and Michael, the California wildfires, or the volcanic eruption and storms impacting Hawaii, you may want to keep a watchful eye on the news coming out of Congress over the coming weeks. Additional disaster-related tax relief has been proposed by the House of Representatives through a bill called the “Retirement, Savings, and Other Tax Relief Act of 2018”. If passed into law before the end of year, it would provide penalty-free access to retirement accounts for disaster-related distributions, the ability to spread the income tax liability for those distributions over a three-year period, and the ability to repay disaster-related distributions to the retirement accounts later.
Benjamin F. Edwards & Co. does not provide tax advice, therefore it is also important to consult with your tax professional for additional guidance tailored to your specific situation.