Copyright: Trong Nguyen

The Internal Revenue Service (IRS) on August 28 announced postponed tax filing deadlines for victims of Hurricane Harvey. Additionally, owners of Low-Income Housing Tax Credit (LIHTC) properties in affected areas are eligible for relief from certain LIHTC provisions.

With regard to filing deadlines, affected individual and business taxpayers will have until January 31, 2018, to file returns and make payments originally due starting on August 23, 2017. For example, this includes the September 15, 2017, and January 16, 2018 deadlines for making quarterly estimated tax payments. Notably, taxpayers with addresses of record located in the disaster area are automatically provided filing and penalty relief. Taxpayers do not need to contact the IRS to request relief, but if a taxpayer receives a late filing or payment penalty notice, the taxpayer should call the IRS to request assistance. Additional details can be found here.

Additionally, IRS regulations also provide relief to owners of LIHTC properties in hurricane-affected areas. Revenue Procedure 2014-49 provides, among other provisions, relief for carryover allocation, recapture and compliance monitoring. Owners may also be eligible for additional tax credits for rehabilitation, though not for restoration. Finally, the Revenue Procedure establishes rules with respect to providing emergency housing relief in LIHTC properties for displaced individuals. Information can be found here