IRS Issues Extensions to Arkansas Storm Victims

On the evening of March 31, 2023, a powerful storm system swept across Arkansas, leaving a trail of destruction in its wake. The storm brought strong winds, heavy rains and tornadoes that caused significant damage to homes, businesses and infrastructure. The Governor of Arkansas, Sarah Huckabee Sanders, declared a state of emergency to help mobilize resources and support for the affected areas.

The federal government quickly responded to the disaster by announcing tax relief measures for the storm victims. The Internal Revenue Service (IRS) declared that taxpayers in the affected areas of Arkansas (Pulaski, Lonoke and Cross counties) will receive automatic filing and payment extensions until July 31, 2023. This means eligible taxpayers will not need to file their tax returns or make payments until the new deadline. This extension will apply to all tax types, including individual, corporate and trust income tax returns, as well as quarterly estimated income tax payments.

The IRS also announced that tax relief measures would apply to taxpayers who reside outside the affected areas but whose records, including tax professionals and businesses, are in the impacted regions. This extension will allow taxpayers to focus on recovering from the storm and not worry about filing taxes.

Taxpayers whose address of record with the IRS is located within the disaster area will automatically receive filing and penalty relief so there is no need to contact the agency. However, if an affected taxpayer receives a late filing or late-payment penalty notice from the IRS, they should call the telephone number on the notice to have the penalty abated.

Click to view the current list of eligible localities on the IRS Tax Relief in Disaster Situations page or on the Governor’s Executive Order.

Adams Brown will continue to monitor how disaster relief impacts tax situations at the federal, state and local levels. Please contact our Arkansas office if you have any questions regarding this tax extension.