Ronald J. Cappuccio, J.D., LL.M.(Tax)

Ronald J. Cappuccio, J.D., LL.M.(Tax)
Tax Attorney and Business Lawyer

Wednesday, January 11, 2017

IRS Taxpayer Advocate calls for Congress to reform Internal Revenue Code

Tax season for individuals starts January 23, 2017 for the 2016 return. Unfortunately, most individuals are facing increasingly complex and confusing tax laws. It is not just businesses that are suffering. The National Taxpayer Advocate has called for Congress to simplify the Internal Revenue Code which takes individuals and businesses more than 6 billion hours a year to comply with filing.

The idea espoused by the Taxpayer Advocate the Congress was to have a neutral Tax Code and cut individual tax rates as well as business tax rates. This means that many of the exclusions, exemptions, deductions and credits would be eliminated as the trade-off for simplification and rate reduction.The recommendation is that Congress start with the tax code without any reductions and then only add back deductions, such as exclusion of capital gains on home sales, if the benefits outweigh the complexity of the provision. The idea is to have a simpler compliance mechanism and use tax is for collecting revenue for the government rather than influencing behavior.

The taxpayer advocate also criticized the Internal Revenue Service for poor service and a focus on enforcement of the tax laws rather than service and helping taxpayers. This makes sense!

Wednesday, January 04, 2017

115th Congress - Will we get Tax Reform and Simplification?

Yesterday, the 115th Congress convened.The Republicans are in charge of both the House and Senate and there is been a lot of talk about tax reduction and "tax reform". Does this mean we will get tax simplification? Since President Reagan signed the Internal Revenue Code of 1986, there have been more than 30,000 changes, excluding Obama care. The fact is the Internal Revenue Code is ridiculously complex and far too much time and money spent in our society both by individuals and businesses in complying and planning for our burdensome tax laws.

There definitely will be a push to lower corporate tax rates. This is good but let's also simplify our business tax structure.

Even more unnecessary and confusing is the personal side of the Internal Revenue Code. For example the alternative minimum tax, designed to force a few wealthy millionaires of the late 1960s to pay tax, has now resulted in more than 1/4 of the middle class paying this burdensome tax. The AMT must go!

There are also complicated and unnecessary rules dealing with real estate. For example there is something known as the "passive activity loss limitation." This is designed to prevent people from getting deductions for losses in real estate investment against their other income. The amount of time and effort to comply with this, plus the amount of litigation involving real estate deductions is an unnecessary drag upon the economy. This must go.

There is also a lot of talk about fraud and abuse. It is not the big so-called "loopholes" where most of the fraud occurs. Most fraud occurs with the earned income tax credit. This was originally designed as the "negative income tax" in the Nixon administration in order to be an efficient way for distributing welfare type payments from the government. Unfortunately it has become an area of massive abuse. If you don't believe me, wait until the first days of tax filing this season. You will see people lined up outside the big box tax preparation offices so they can get their "refund" which is actually more money than they paid in for taxes. This must go!

The next time any of our politicians talk about tax reform listen for "simplification." Simply adjusting tax rates is not enough to have the kind of impact we need to make our economy and lives simpler.

Monday, December 19, 2016

Take stock of your inventory accounting method’s impact on your tax bill

Take stock of your inventory accounting method’s impact on your tax bill

If your business involves the production, purchase or sale of merchandise, your inventory accounting method can significantly affect your tax liability. In some cases, using the last-in, first-out (LIFO) inventory accounting method, rather than first-in, first-out (FIFO), can reduce taxable income, giving cash flow a boost. Tax savings, however, aren’t the only factor to consider.

FIFO vs. LIFO
FIFO assumes that merchandise is sold in the order it was acquired or produced. Thus, the cost of goods sold is based on older — and often lower — prices. The LIFO method operates under the opposite assumption: It allocates the most recent costs to the cost of sales.
If your inventory costs generally rise over time, LIFO offers a definite tax advantage. By allocating the most recent — and, therefore, higher — costs first, it maximizes your cost of goods sold, which minimizes your taxable income. But LIFO involves more sophisticated record keeping and more complex calculations, so it’s more time-consuming and expensive than FIFO.

Other considerations

LIFO can create a problem if your inventory levels begin to decline. As higher inventory costs are used up, you’ll need to start dipping into lower-cost “layers” of inventory, triggering taxes on “phantom income” that the LIFO method previously has allowed you to defer. If you use LIFO and this phantom income becomes significant, consider switching to FIFO. It will allow you to spread out the tax on phantom income.

If you currently use FIFO and are contemplating a switch to LIFO, beware of the IRS’s LIFO conformity rule. It generally requires you to use the same inventory accounting method for tax and financial statement purposes. Switching to LIFO may reduce your tax bill, but it will also depress your earnings and reduce the value of inventories on your balance sheet, which may place you at a disadvantage in comparison to competitors that don’t use LIFO. There are various issues to address and forms to complete, so be fully informed and consult your tax advisor before making a switch.

The method you use to account for inventory can have a big impact on your tax bill and financial statements. These are only a few of the factors to consider when choosing an inventory accounting method. Contact us for help assessing which method will provide the best fit with your current financial situation.

Monday, December 12, 2016

Help prevent the year-end vacation-time scramble with a PTO contribution arrangement

Many businesses find themselves short-staffed from Thanksgiving through December 31 as employees take time off to spend with family and friends. But if you limit how many vacation days employees can roll over to the new year, you might find your workplace a ghost town as workers scramble to use, rather than lose, their time off. A paid time off (PTO) contribution arrangement may be the solution.
How it works
A PTO contribution program allows employees with unused vacation hours to elect to convert them to retirement plan contributions. If the plan has a 401(k) feature, it can treat these amounts as a pretax benefit, similar to normal employee deferrals. Alternatively, the plan can treat the amounts as employer profit sharing, converting excess PTO amounts to employer contributions.
A PTO contribution arrangement can be a better option than increasing the number of days employees can roll over. Why? Larger rollover limits can result in employees building up large balances that create a significant liability on your books.
Getting started
To offer a PTO contribution arrangement, simply amend your plan. However, you must still follow the plan document’s eligibility, vesting, rollover, distribution and loan terms. Additional rules apply.
To learn more about PTO contribution arrangements, including their tax implications, please contact us.

Tuesday, November 22, 2016

Is cash for keys cancellation of debt income?

When a house is foreclosed, or there is a deed in lieu of foreclosure, some mortgage companies make a deal with the owner or tenant. Usually the deal works like this: the owner agrees to leave the property on a certain date and broom swept condition without taking any of the appliances, copper pipes, etc. If the  home was left in the promise condition, the homeowner or tenant will receive a certain stipend from the mortgage company. Sounds good, right?

Nevertheless, the mortgage company than typically issues a 1099 for the cancellation of indebtedness income for the amount of the foreclosure and an additional 1099-MISC for the alleged miscellaneous income and cash for keys. The IRS has taken the position that the cash for keys income as ordinary income and should be taxed. In the case of Bobo vs. Commissioner, the US Tax Court determined that the foreclosure and the additional cash for keys payment were really one transaction. Since in that case, the taxpayer had an actual loss on the sale of their home, even with cash for keys payment there was no additional income.

Any time taxpayer receives a 1099s for a home foreclosure, settlement with a credit card company, or other loan, the matter should always be reviewed with a good tax lawyer to see if they amount of the 1099s is actually taxable or not.


Monday, November 21, 2016

NJ Ends Urban Enterprise Zones

The New Jersey Division of Taxation announced the end of urban enterprise zones for sales tax:

  • Bridgeton
  • Camden
  • Newark
  • Plainfield
  • Trenton

The former 3% rate for these urban enterprise zones for sales tax will be changed to the full rate of 6.875% starting January 1, 2017. It is possible that the New Jersey legislature a change this position, but it was part of the negotiated deal by the legislature when it radically increased the New Jersey gasoline tax.

Tuesday, November 01, 2016

New Jersey Phasing Out NJ Estate Tax

New Jersey has long had the highest state estate tax in the country. Any estate over $675,000 would owe tax to the state of New Jersey. This could be very substantial and was a significant reason for many taxpayers, especially retirees, to move from New Jersey to more tax-advantaged states such as Florida. Tax lawyers, and estate planners, have been arguing for many years that this is really costing New Jersey a lot in revenue and negatively affects the state.

Finally, after years of arguing, the New Jersey legislature passed a bill, signed by Governor Christie, that would reduce the New Jersey estate tax. Beginning January 1, 2017, only estates in excess of $2 million would be subject to the New Jersey estate tax. Starting January 1, 2018, if it is not repealed, the New Jersey estate tax would be eliminated.

There was a lot of political wrangling in order to get this passed. There is a slight reduction in New Jersey sales tax rate, but not the fact that many items are tax New Jersey that are not taxed elsewhere, and the legislature increased the gasoline tax by $0.30 a gallon. Instead of tightening their belts, the legislature chose to increase taxes in order to eliminate the estate tax. My choice would have been to simply cut the state budget!

Everyone within the state above $675,000 should have their Wills and Trusts, and entire Estate Plan reviewed immediately. Many of the actions we have taken to avoid New Jersey estate tax are no longer necessary. This is particularly true for estates with values between $675,00 and $5.5 million.

Monday, October 31, 2016

Sugar Tax Helps Beverage Companies!

The Internet is filled with reports from a recent article in the Journal of American Public Health showing that a sugar tax cuts consumption of sugar sweetened soda. This plays right into the hands of Bradford manufacturers! You are probably thinking I am crazy, but once again government does the wrong thing.

Sweetened sodas and diet sodas are sold for the same price. Nevertheless, diet sodas are much cheaper to manufacture than sodas with high fructose corn syrup and sodas with cane sugar. Therefore the tax on sweetened soft drinks increases the number of people drinking a diet soda, which is more profitable to the beverage industry, then naturally sugar sweetened soda and drinks.

So, governments by misusing taxes to force people to change behavior, have in fact increase the profit of beverage manufacturers and increase diet drinks rather than healthier all-natural sugar sweetened drinks. Obviously, the intake of the sugar sweetened drinks should be limited, but every study that is ever been done shows that diet sodas do not help people lose weight.

Let's get government out of taxing things to force people to change behavior. Let's just have taxes simply to collect the minimum money needed to run our government!

If you want to see the article in the Journal of American public health:
bit.ly/2ekY7Nu 

Wednesday, October 26, 2016

Is your LLC and S Corporation going to be Taxed at 25%?

Congress refuses to actually simplify the Internal Revenue Code. Since the 1986 tax Reform Act, Congress has passed more than 30,000 amendments to the Internal Revenue Code. Instead of simplification, Congress is now proposing a disguise tax increase for businesses.

Under our present federal corporate structure, if an individual owns a limited liability company or a sole proprietorship, the entity is not tax separately. Rather the income is added to the individual's own tax. That is also true for partnerships and limited partnerships. Congress wants to change this to add a 25% tax at the business level. This will mean that small businesses will now be facing the same double tax problem that large businesses have. In addition there will have to be a whole series of new forms and a complete rewrite of a portion of the Internal Revenue Code for this new scheme.

Instead of moving in the right direction, Congress is moving in the wrong direction!

Please see this interesting article discussing some of these issues in further detail:

http://news.cchgroup.com/2016/10/26/ways-means-now-building-legislation-based-gop-tax-reform-blueprint-staffer-says/?utm_campaign=Tax+News+Headlines+October+2016&utm_medium=EM-BRANDING&utm_source=TNH+10/26/2016+6:37:09+AM

Friday, October 21, 2016

Changes to the 1040

WHAT'S NEW ON THE 2016 DRAFT FORM 1040 AND RELATED FORMS AND SCHEDULES

IRS has released on its website a number of draft tax forms and instructions for the 2016 tax year, including Form 1040 and its related schedules.
This Practice Alert, which appears in two parts, highlights key changes made on the 2016 return. The first Part examined the draft Form 1040 itself. This Part II covers related draft forms and schedules.

FORM 1040—SCHEDULE A, ITEMIZED DEDUCTIONS
Line 1. Medical and dental expenses. The 2016 standard mileage rate for medically-related use of an auto is 19¢ per mile.
Line 21. Unreimbursed employee expenses. The 2016 standard mileage rate for business travel is 54¢ per mile.
Line 29. Limit on itemized deductions. Itemized deductions for taxpayers with adjusted gross incomes in excess of the "applicable amount" ($311,300 for joint filers or a surviving spouse, $285,350 for a head of household, $259,400 for a single individual who isn't a surviving spouse, and $155,650 for marrieds filing separately) may be reduced.
FORM 1040—SCHEDULE B, INTEREST AND ORDINARY DIVIDENDS
Line 1. Interest. Accrued interest on Series EE U.S. savings bonds issued in '86 is taxable.
Line 3. Excludable interest on Series EE or Series I U.S. savings bonds. The exclusion for education-related savings bond interest phases out at higher income levels. For 2016, the phaseout begins at modified AGI above $77,550 ($116,300 on a joint return).
FORM 1040—SCHEDULE C, PROFIT OR LOSS FROM BUSINESS
Line D. Employer ID number. For 2016, the Line D instructions provide that the sole owner of a limited liability company (LLC) that is not treated as a separate entity for federal income tax purposes, and that has an Employer ID number (EIN) issued in the LLC's legal name because it is required to file employment tax returns and/or certain excise tax returns, should enter the LLC's EIN here. In prior years, the Schedule C, Line D instructions provided that such a taxpayer wasn't to enter that EIN on Line D. Instead, the owner of such an LLC was instructed to enter here the EIN issued to him in his name as a sole proprietor, if there was such an EIN.
Part II. Expenses. Line 9. Car and truck expenses. The 2016 standard mileage rate for business travel is 54¢ per mile.
Part II. Expenses. Line 13. Depreciation and section 179 expense. See entries for Form 4562, below.
Part II. Expenses. Line 27a. Other expenses. Historically, taxpayers could elect to deduct costs of certain qualified film and television productions. Beginning in 2016, taxpayers can also elect to deduct costs of certain qualified live theatrical productions that have their first public performance for a paying audience in 2016.
FORM 4562, DEPRECIATION AND AMORTIZATION
Part I. Election to expense certain tangible property under Sec. 179. For tax years beginning in 2016, the maximum section 179 expense deduction is $500,000 ($535,000 for qualified enterprise zone property). This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,010,000.
Line 14. Special depreciation allowance for qualified property. Taxpayers can elect to claim the special depreciation allowance for certain specified plants bearing fruit and nuts that are planted or grafted after Dec. 31, 2015.
Part V. Listed property. First-year luxury auto limits for vehicles first placed in service in 2016 are $3,160 for autos and $3,560 for light trucks or vans.
Form 1040—SCHEDULE E, SUPPLEMENTAL INCOME AND LOSS
Standard mileage rate. The 2016 standard mileage rate for miles driven in connection with the taxpayer's rental activities is 54¢ per mile.
FORM 1040—SCHEDULE F, PROFIT OR LOSS FROM FARMING
Part II. Farm Expenses—Cash and Accrual Method. Line 10. Car and truck expenses. The 2016 standard mileage rate for business travel is 54¢ per mile

This is from a daily RIA alert which I find helpful.

Wednesday, October 19, 2016

Nanny Tax Threshold $2000 for 2017

You remember all the famous cases about politicians not reporting domestic employees for Social Security taxes? The unofficial term is the "nanny tax." The rule, as announced by the Social Security Administration, is quite simple. If you pay any individual domestic employee, such as a house cleaner gardener or babysitter less than $2000 per year, it does not have to be reported to the Social Security Administration and you do not have to collect and remit Social Security taxes. This is on a per employee basis. So, for example if you had one babysitter that you paid $1800 to during the course of the year and another one that you paid $1000, even though the combined total is $2800, more than $2000, you still do not have to report that. On the other hand if it were just one employee hired for $2800 you would have to report the entire $2800 and withhold Social Security and pay the employer's matching portion.

See the Social Security administration official announcement:

https://www.ssa.gov/OACT/COLA/CovThresh.html

Friday, October 07, 2016

Disaster victims in Florida qualify for tax relief

This is an article just announced on the Thompson Reuters Website:


DISASTER VICTIMS IN FLORIDA QUALIFY FOR TAX RELIEF

IRS has announced on its website that victims of Hurricane Hermine in counties of Florida that are designated as federal disaster areas qualifying for individual assistance have more time to make tax payments and file returns. Certain other time-sensitive acts also are postponed. This article summarizes the relief that's available and includes up-to-date disaster area designations and extended filing and deposit dates for all areas affected by storms, floods and other disasters in 2016.
Who gets relief. Only taxpayers considered to be affected taxpayers are eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts. Affected taxpayers are those listed in Reg. § 301.7508A-1(d)(1) and thus include:
  • Any individual whose principal residence, and any business entity whose principal place of business, is located in the counties designated as disaster areas;
  • Any individual who is a relief worker assisting in a covered disaster area, regardless of whether he is affiliated with recognized government or philanthropic organizations;
  • Any individual whose principal residence, and any business entity whose principal place of business, is not located in a covered disaster area, but whose records necessary to meet a filing or payment deadline are maintained in a covered disaster area;
  • Any estate or trust that has tax records necessary to meet a filing or payment deadline in a covered disaster area; and
  • Any spouse of an affected taxpayer, solely with regard to a joint return of the husband and wife.
What may be postponed. Under Code Sec. 7508A, IRS gives affected taxpayers until the extended date (specified by county, below) to file most tax returns (including individual, estate, trust, partnership, C corporation, and S corporation income tax returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date falling on or after the onset date of the disaster (specified by county, below), and on or before the extended date.
IRS also gives affected taxpayers until the extended date to perform other time-sensitive actions described in Reg. § 301.7508A-1(c)(1) and Rev Proc 2007-56, 2007-34 IRB 388, that are due to be performed on or after the onset date of the disaster, and on or before the extended date. This relief also includes the filing of Form 5500 series returns, in the way described in Rev Proc 2007-56, Sec. 8. Additionally, the relief described in Rev Proc 2007-56, Sec. 17, relating 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.
The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 or 5498 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. IRS, however, will abate penalties for failure to make timely employment and excise deposits, due on or after the onset date of the disaster, and on or before the deposit delayed date (specified by county, below), provided the taxpayer made these deposits by the deposit delayed date.
Affected areas and dates for storms, floods and other disasters occurring in 2016 (or in 2015, with extended dates going into 2016) that are federal disaster areas qualifying for individual assistance, as published on IRS's website, are carried below.
RIA observation: Effective for disasters declared in tax years beginning after Dec. 31, 2007, the term "federally declared disaster" replaced the previously used "presidential disaster area" term (see Code Sec. 1033(h)(3), as amended by Sec. 706(d)(1), Div. C, P.L. 110-343). The new term is substantially the same as the definition of "presidentially declared disaster" under former law. (T.D. 9443, 01/4/2009, see Weekly Alert ¶ 1 01/22/2009)
Arkansas: The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, straight-line winds and flooding that took place beginning on Dec. 26, 2015: Benton, Carroll, Crawford, Faulkner, Jackson, Jefferson, Lee, Little River, Perry, Sebastian, and Sevier counties.
For these Arkansas counties, the onset date of the disaster was Dec. 26, 2015, the extended date was May 16, 2016 (which includes the 2015 income tax returns normally due on Apr. 18, the Jan. 15 and Apr. 18 deadlines for making quarterly estimated tax payments, the Feb. 1 and May 2 deadlines for quarterly payroll and excise tax returns, and the special Mar. 1 deadline for farmers and fishermen who choose to forgo making estimated tax payments). The deposit delayed date was Jan. 11, 2016.
California: The following are federal disaster areas qualifying for individual assistance on account of the Valley and Butte fires that took place beginning on Sept. 12, 2015: Calaveras and Lake counties.
For these California counties, the onset date of the disaster was Sept. 12, 2015, the extended date was Jan. 15, 2016 (which includes individual returns on extension to October 17, the September 15 deadline for making quarterly estimated tax payments, the 2015 corporate and partnership returns on extension through September 15, and for quarterly payroll and excise tax returns). The deposit delayed date was Sept. 28, 2015.
Florida: The following are federal disaster areas qualifying for individual assistance on account of Hurricane Hermine that took place beginning on Aug. 31, 2016: Citrus, Dixie, Hernando, Hillsborough, Leon, Levy, Pasco, and Pinellas counties.
For these Florida counties, the onset date of the disaster was Aug. 31, 2016, the extended date is Jan. 17, 2017 (which includes the Sept. 15 estimated tax deadline, the 2014 corporate and partnership returns on extension thru Sept. 15, and the Oct. 15 deadline for those who received an extension to file their 2014 return). The deposit delayed date was Sept. 15, 2016.
Louisiana: The following are federal disaster areas qualifying for individual assistance on account of severe storms and flooding that took place beginning on Mar. 8, 2016: Allen, Ascension, Avoyelles, Beauregard, Bienville, Bossier, Caddo, Calcasieu, Caldwell, Catahoula, Claiborne, De Soto, East Carroll, Franklin, Grant, Jackson, La Salle, Lincoln, Livingston, Madison, Morehouse, Natchitoches, Ouachita, Rapides, Red River, Richland, Sabine, St. Helena, St. Tammany, Tangipahoa, Union, Vernon, Washington, Webster, West Carroll, and Winn parishes.
For these Louisiana parishes, the onset date of the disaster was Mar. 8, 2016, and the extended date was July 15, 2016 (which includes 2015 income tax returns normally due on April 18, the April 18 and June 15 deadlines for making quarterly estimated tax payments, and a variety of business tax deadlines including the May 2 deadlines for quarterly payroll and excise tax returns). The deposit delayed date was Mar. 23, 2016.
Louisiana: The following are federal disaster areas qualifying for individual assistance on account of severe storms and flooding that took place beginning on Aug. 11, 2016: Acadia, Ascension, Avoyelles, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Livingston, Pointe Coupee, St. Helena, St. James, St. Landry, St. Martin, St. Tammany, Tangipahoa, Vermilion, Washington, West Baton Rouge, and West Feliciana parishes.
For these Louisiana parishes, the onset date of the disaster was Aug. 11, 2016, and the extended date is Jan. 17, 2017 (which includes individual returns on extension to Oct. 17, the Sept. 15 deadline for making quarterly estimated tax payments, the 2015 corporate and partnership returns on extension through Sept. 15, and the Oct. 31 deadlines for quarterly payroll and excise tax returns). The deposit delayed date was Aug. 26, 2016.
Mississippi: The following are federal disaster areas qualifying for individual assistance on account of recent storms that took place beginning on Dec. 23, 2015: Benton, Coahoma, Marshall, Monroe, Panola, Prentiss, Quitman, and Tippah counties.
For these Mississippi counties, the onset date of the disaster was Dec. 23, 2015, and the extended date was May 16, 2016 (which includes the 2015 income tax returns normally due on Apr. 18, the Jan. 15 and Apr. 18 deadlines for making quarterly estimated tax payments, and a variety of business tax deadlines including the Feb. 1 and May 2 deadlines for quarterly payroll and excise tax returns and the special Mar. 1 deadline for farmers and fishermen who choose to forgo making estimated tax payments). The deposit delayed date was Jan. 7, 2016. (IR 2016-2)
Mississippi: The following are federal disaster areas qualifying for individual assistance on account of recent storms that took place beginning on Mar. 9, 2016: Bolivar, Clarke, Coahoma, Forrest, George, Greene, Jones, Marion, Panola, Pearl River, Perry, Quitman, Sunflower, Tallahatchie, Tunica, Wayne, and Washington counties.
For these Mississippi counties, the onset date of the disaster was Mar. 9, 2016, and the extended date was July 15, 2016 (which includes the 2015 income tax returns normally due on Apr. 18, the Apr. 18 and June 15 deadlines for making quarterly estimated tax payments, and a variety of business tax deadlines including the May 2 deadlines for quarterly payroll and excise tax returns). The deposit delayed date was Mar. 24, 2016.
Missouri: The following are federal disaster areas qualifying for individual assistance on account of recent storms that took place beginning on Dec. 23, 2015: Barry, Barton, Camden, Cape Girardeau, Cole, Crawford, Franklin, Gasconade, Greene, Hickory, Jasper, Jefferson, Laclede, Lawrence, Lincoln, Maries, McDonald, Morgan, Newton, Osage, Phelps, Polk, Pulaski, Scott, St. Charles, St. Francois, St. Louis, Ste. Genevieve, Stone, Taney, Texas, Webster, and Wright counties.
For these Missouri counties, the onset date of the disaster was Dec. 23, 2015, and the extended date was May 16, 2016 (which includes 2015 income tax returns normally due on April 18, the Jan. 15 and Apr. 18 deadlines for making quarterly estimated tax payments, and a variety of business tax deadlines including the Feb. 1 and May 2 deadlines for quarterly payroll and excise tax returns and the special March 1 deadline for farmers and fishermen who choose to forgo making estimated tax payments). The deposit delayed date was Jan. 7, 2016. (IR 2016-9)
South Carolina: The following are federal disaster areas qualifying for individual assistance on account of severe storms and flooding that took place beginning on Oct. 1, 2015: Bamberg, Berkeley, Calhoun, Charleston, Clarendon, Colleton, Darlington, Dorchester, Fairfield, Florence, Georgetown, Greenville, Greenwood, Horry, Kershaw, Lee, Lexington, Marion, Newberry, Orangeburg, Richland, Spartanburg, Sumter and Williamsburg counties.
For these South Carolina counties, the onset date of the disaster was Oct. 1, 2015, and the extended date was Feb. 16, 2016 (which includes the Oct. 15 deadline for those who received an extension to file their 2014 return). The deposit delayed date was Oct. 16, 2015.
Texas: The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, straight-line winds and flooding that took place beginning on Oct. 22, 2015: Bastrop, Brazoria, Caldwell, Cameron, Comal, Galveston, Guadalupe, Hardin, Harris, Hays, Hidalgo, Liberty, Navarro, Travis, Willacy, and Wilson counties.
For these Texas counties, the onset date of the disaster was Oct. 22, 2015, and the extended date was Feb. 29, 2016. The deposit delayed date was Nov. 6, 2015.
Texas: The following are federal disaster areas qualifying for individual assistance on account of severe storms, tornadoes, and flooding that took place beginning on Mar. 7, 2016: Erath, Gregg, Harrison, Henderson, Hood, Jasper, Limestone, Marion, Newton, Orange, Parker, Shelby, and Tyler counties.
For these Texas counties, the onset date of the disaster was Mar. 7, 2016, and the extended date was July 15, 2016 (which includes the 2015 income tax returns normally due on April 18, the April 18 and June 15 deadlines for making quarterly estimated tax payments, and a variety of business tax deadlines including the May 2 deadlines for quarterly payroll and excise tax returns). The deposit delayed date was Mar. 22, 2016.
Texas: The following are federal disaster areas qualifying for individual assistance on account of storms that took place beginning on Apr. 17, 2016: Anderson, Austin, Cherokee, Colorado, Fayette, Fort Bend, Grimes, Harris, Liberty, Montgomery, Parker, San Jacinto, Smith, Walker, Wharton, Wood counties.
For these Texas counties, the onset date of the disaster was Apr. 17, 2016, and the extended date was Sept. 1, 2016 (which includes 2015 income tax returns normally due on April 18, the April 18 and June 15 deadlines for making quarterly estimated tax payments, and a variety of business tax deadlines including the May 2 and Aug. 1 deadlines for quarterly payroll and excise tax returns). The deposit delayed date was May 2, 2016. (IR 2016-67)
Texas: The following are federal disaster areas qualifying for individual assistance on account of the severe storms and flooding that took place beginning on May 26, 2016: Austin, Bastrop, Brazoria, Brazos, Burleson, Eastland, Fayette, Fort Bend, Grimes, Harris, Hidalgo, Hood, Kleberg, Lee, Liberty, Montgomery, Palo Pinto, Parker, San Jacinto, Stephens, Travis, Tyler, Waller, and Washington counties.
For these Texas counties, the onset date of the disaster was May 26, 2016, and the extended date is Oct. 17, 2016 (which includes the June 15 and Sept. 15 deadlines for making quarterly estimated tax payments, the 2015 corporate and partnership returns on extension through Sept. 15, and the Aug. 1 deadlines for quarterly payroll and excise tax returns). The deposit delayed date was June 10, 2016.
West Virginia: The following are federal disaster areas qualifying for individual assistance on account of the severe storms, flooding, landslides, and mudslides that took place beginning on June 22, 2016: Clay, Fayette, Greenbrier, Jackson, Kanawha, Lincoln, Monroe, Roane, Summers, Nicholas, Pocahontas, and Webster counties.
For these West Virginia counties, the onset date of the disaster was June 22, 2016, and the extended date is Nov. 15, 2016 (which includes individual returns on extension to Oct. 17, the Sept. 15 deadline for making quarterly estimated tax payments, the 2015 corporate and partnership returns on extension through Sept. 15, and the Aug. 1 deadlines for quarterly payroll and excise tax returns). The deposit delayed date was July 7, 2016.
References: For postponement of tax deadlines due to disasters, see FTC 2d/FIN ¶ S-8500; United States Tax Reporter ¶ 75,08A4; TG ¶ 1944.