Hurricane Debby

FICPA sends letter to FinCEN requesting FBAR and BOI filing relief after Debby

133345 — Tue, 20 Aug 2024 18:17:05 +0000

FICPA sends letter to FinCEN requesting FBAR and BOI filing relief after Debby

133345 Tue, 08/20/2024 - 14:17

August 20, 2024

FICPA President & CEO Shelly Weir on Monday submitted a letter to the Director of the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), Andrea Gacki, requesting that FinCEN provide filing relief to those impacted by Hurricane Debby in Florida.

The IRS has offered an extension to 61 Florida counties through Feb. 3, 2025. The FICPA the same relief for
affected residents of Florida who have an FBAR and/or BOI filing requirement.

Read the full letter below:

Topics

Hurricane Debby

DOR grants corporate income tax relief to those impacted by Debby; deadline extended to Feb. 18, 2025

133345 — Tue, 13 Aug 2024 22:50:43 +0000

DOR grants corporate income tax relief to those impacted by Debby; deadline extended to Feb. 18, 2025

By FICPA Staff

133345 Tue, 08/13/2024 - 18:50

August 13, 2024

Updated Aug. 14, 2024, 9:45 a.m.

The Florida Department of Revenue (DOR) has announced that it will follow the tax relief granted by the Internal Revenue Service (IRS) for taxpayers impacted by Hurricane Debby.

A memorandum from DOR Executive Director Jim Zingale, dated Monday, Aug. 12, states:

Corporate income tax return information submitted by taxpayers to the IRS is necessary for the filing of a Florida corporate income tax return with the Department. As a result ... due dates and extension periods for filing Florida corporate income tax returns and paying tentative tax are suspended until Tuesday, Feb. 18, 2025, which is 15 days after the federal filing extension provided for this disaster. ...

As of the date of this memorandum, the suspension of due dates and extension periods for corporate income tax is in effect and applies to affected taxpayers within the following Florida counties: Alachua, Baker, Bay, Bradford, Brevard, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Escambia, Flagler, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Holmes, Jackson, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Monroe, Nassau, Okaloosa, Okeechobee, Orange, Osceola, Pasco, Pinellas, Polk, Putnam, Santa Rosa, Sarasota, Seminole, St. Johns, Sumter, Suwannee, Taylor, Union, Volusia, Walton, Wakulla, and Washington counties designated by the IRS for tax relief from this disaster situation.

This memorandum also applies to affected taxpayers located in other states that are required to file a Florida corporate income tax return. As the IRS grants this tax relief for more counties, they will be included as well.

The full DOR memo is embedded below.

The FICPA will keep its members advised of any other revised filing dates post-Debby and throughout hurricane season.

Topics

Hurricane Debby

Florida Department of Revenue

IRS issues tax relief to 61 Florida counties impacted by Hurricane Debby; deadlines extended to Feb. 3, 2025

133345 — Fri, 09 Aug 2024 21:00:56 +0000

IRS issues tax relief to 61 Florida counties impacted by Hurricane Debby; deadlines extended to Feb. 3, 2025

Internal Revenue Service Release

133345 Fri, 08/09/2024 - 17:00

August 9, 2024

WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in Florida that were affected by severe storms and flooding that began on Aug. 1, 2024. These taxpayers now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.

Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in Alachua, Baker, Bay, Bradford, Brevard, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Escambia, Flagler, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Holmes, Jackson, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Monroe, Nassau, Okaloosa, Okeechobee, Orange, Osceola, Pasco, Pinellas, Polk, Putnam, Santa Rosa, Sarasota, Seminole, St. Johns, Sumter, Suwannee, Taylor, Union, Volusia, Walton, Wakulla and Washington 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 Aug. 1, 2024, and before Feb. 3, 2025, are granted additional time to file through Feb. 3, 2025. As a result, affected individuals and businesses will have until Feb. 3, 2025, to file returns and pay any taxes that were originally due during this period.

The Feb. 3, 2025, filing deadline applies to:

Individuals who had a valid extension to file their 2023 return due to run out on Oct. 15, 2024. The IRS noted, however, that because tax payments related to these 2023 returns were due on April 15, 2024, those payments are not eligible for this relief.
Businesses with an original or extended due date including, among others, calendar-year partnerships and S corporations whose 2023 extensions run out on Sept. 16, 2024, and calendar-year corporations whose 2023 extensions run out on Oct. 15, 2024.

The Feb. 3, 2025, deadline also applies to any payment normally due during this period, including the quarterly estimated tax payments due on Sept. 16, 2024, and Jan. 5, 2025, and the quarterly payroll and excise tax returns normally due on Oct. 31, 2024, and Jan. 15, 2025. In addition, penalties on payroll and excise tax deposits due on or after Aug. 1, 2024, and before Aug. 16, 2024, will be abated as long as the tax deposits are made by Aug. 16, 2024.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original 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 automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS disaster hotline at 866-562-5227 to request this tax relief. Disaster area tax preparers with clients located outside the disaster area can choose to use the Bulk requests from practitioners for disaster relief option, described on IRS.gov.

Covered disaster area

The localities listed above constitutes a covered disaster area for purposes of Treas. Reg. §301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses (including tax-exempt organizations) whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Under section 7508A, the IRS gives affected taxpayers until Feb. 3, 2025, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns), that have either an original or extended due date occurring on or after Aug. 1, 2024, and before Feb. 3, 2025, are granted additional time to file through Feb. 3, 2025.

Affected taxpayers that have an estimated income tax payment originally due on or after Aug. 1, 2024, are postponed through Feb. 3, 2025, will not be subject to penalties for failure to pay estimated tax installments as long as such payments are paid on or before Feb. 3, 2025.

The IRS also gives affected taxpayers until Feb 3, 2025, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2018-58, 2018-50 IRB 990 (December 10, 2018), that are due to be performed on or after Aug. 1, 2024, and before Feb. 3, 2025, are granted additional time to file through Feb. 3, 2025.

This relief also includes the filing of Form 5500 series returns that were required to be filed on or after Aug. 1, 2024, and before Feb. 3, 2025, are postponed through Feb. 3, 2025, in the manner described in section 8 of Rev. Proc. 2018-58. The relief described in section 17 of Rev. Proc. 2018-58, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

Unless an act is specifically listed in Rev. Proc. 2018-58, the postponement of time to file and pay does not apply to information returns in the W-2, 1094, 1095, 1097, 1098 or 1099 series; to Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits. However, penalties on deposits due on or after Aug. 1, 2024, and before Feb. 3, 2025, will be abated as long as the tax deposits were made by Feb. 3, 2025.

Casualty losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred, or the prior year. In this instance, the 2024 return normally filed next year), or the return for the prior year (the 2023 return filed this year). Taxpayers have extra time – up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) – to make the election. See Publication 547 for details. Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684, Casualties and Thefts PDF and its instructions PDF. Affected taxpayers claiming the disaster loss on their return should put FEMA disaster declaration number, 3605-EM on any return. See Publication 547 for details.

Other relief

The IRS will waive the usual fees and requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned FEMA declaration number (3605-EM), in bold letters at the top of Form 4506, Request for Copy of Tax Return PDF, or Form 4506-T, Request for Transcript of Tax Return PDF, as appropriate, and submit it to the IRS.

Qualified disaster relief payments are generally excluded from gross income. This means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525 for details.

Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.

The IRS may provide additional disaster relief in the future.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Taxpayers may download forms and publications from the official IRS website, IRS.gov.

Topics

Internal Revenue Service

Hurricane Debby

Legislative Update: Navigating the aftermath of Hurricane Debby

133345 — Thu, 08 Aug 2024 16:33:19 +0000

Legislative Update: Navigating the aftermath of Hurricane Debby

FICPA Governmental Affairs Team

133345 Thu, 08/08/2024 - 12:33

August 9, 2024

Hurricane Debby on Monday made landfall as a Category 1 hurricane near the city of Steinhatchee in Florida's Big Bend region. The Steinhatchee River near Cross City rose nearly 8 feet as Debby came ashore, and state officials said residents in the area could expect continuing heavy flooding into the next week. The FICPA would like to extend its heartfelt sympathies to the individuals, families and businesses impacted by this storm.

With Debby's impact still being assessed by state and federal agencies, rest assured the FICPA will advocate for the profession and submit any appropriate relief requests as needed.

As part of the recovery, Gov. Ron DeSantis on Tuesday activated the Florida Small Business Emergency Bridge Loan Program, allocating $10 million for businesses affected by the storm. The program offers short-term, zero-interest loans to small businesses that have suffered economic or physical damage due to the hurricane. Florida small business owners in need of assistance, including sole proprietors, are encouraged to visit www.FloridaJobs.org/EBL to apply for the Florida Small Business Emergency Bridge Loan Program.

Unfortunately, Debby is probably not the last storm Florida will face this year. As a reminder, the recently passed FICPA priority legislation on automatic tax extensions included in HB 7073 – Taxation provides an automatic tax extension when a state of emergency has been declared within 5 days of a deadline. It does not appear that the extension will apply to this state of emergency- Governor's Executive Order. That said, the new statutory language is in place and will be triggered when applicable.

If you or a client needs any assistance with a specific storm-related question, please contact the FICPA Governmental Affairs office.

FICPA hosts first State and Federal Tax committee meetings of the member year

Over the past two weeks, the FICPA has continued its collaboration with practice leaders within the CPA profession. Both the State Tax and Federal Tax committees held their first meetings of the member year. These first organizational meetings are an important step in ensuring a productive year. The committees discussed the current legislative and regulatory polices within the tax accounting practice and coordinated communications to membership on emerging and sustaining issues. The FICPA’s membership provides insight into the profession and issues related to their unique practice areas. This collaboration from all sectors strengthens the profession in the state and beyond.

2024 Election update – it has begun

Early voting has officially kicked off in parts of the state, and all 67 counties in Florida will be open for early voting starting Saturday, Aug. 10. The arduous work of candidates will pay off on Election Day (Tuesday, Aug. 20), as the results of the Florida primary election come out. Many local and state races will be decided in open primaries, and those not decided in the primary will continue to the general election in November.

The Governmental Affairs Team continues to carefully monitor races that are important to the profession. If you are interested in hearing more about the election season, consider joining our next Capitol Connection: Election Edition livestream scheduled for Friday, Aug. 23 at 10 a.m, featuring everything you need to know about the 2024 Florida Primary Election in 30 minutes or less.

This will be a special edition of the Capitol Connection, where the Governmental Affairs team will break down the results of the primary election, giving electoral insight and looking ahead This is a premium opportunity normally reserved for contributors of the CPA/PAC but is being made available to all for the summer as a member benefit. If you need help registering for these virtual meetings, please contact any Governmental Affairs Team member.

Looking ahead

As we move forward from the impact of Hurricane Debby, the focus will be on continued recovery efforts. The FICPA will keep you informed about updates to recovery programs and financial assistance available to small businesses.

The FICPA will also keep members updated on any new developments or extended deadlines and provide guidance and support to navigate any challenges related to tax filings and emergency declarations.

And, of course, as the election season progresses, we will keep an eye on local and state races that could impact the CPA profession. The results from the primary election will set the stage for the general election, and the FICPA will continue to provide insights and analysis on election outcomes and their implications for the profession.

Topics

Legislative Update

Hurricane Debby