IRS grants tax extensions to those affected by Hurricane Irma


IRS grants tax extensions to those affected by Hurricane Irma

As expected, the Department of Labor has announced employee benefit plan compliance guidance and relief for victims of Hurricane Irma that parallels that of Hurricane Harvey. This donation is in addition to the $3.5 million that the company committed last week to Hurricane Harvey relief. The support is in addition to the $1 million the company pledged after Hurricane Harvey.FedEx is proud to use its global network to help the American Red Cross, Direct Relief, International Medical Corps, Heart to Heart International, Salvation Army, Team Rubicon and Water Mission respond to these unprecedented disasters.

Plans will be allowed to make loans or hardship distributions before the plan is formally amended to provide for such features. If a plan requires certain documentation before a distribution is made, the plan can relax this requirement as described in IRS Announcement 2017-13.

House Ways and Means Committee Chairman Rep. Kevin Brady, R-Texas, is considering legislation that would not only suspend, in hurricane-affected regions, the 10 percent penalty imposed when 401 (k) plan participants tap their 401 (k) retirement savings before age 59.5.

$100,000 for Habitat for Humanity to help rebuild homes across the southeast.

The guidance provided in this statement generally applies to employee benefit plans, plan sponsors, employers and employees, and service providers to such employers who were located in a county identified for individual assistance by the Federal Emergency Management Agency (FEMA) because of the devastation caused by Hurricane Irma or Harvey. Affected businesses will have until January 31, 2018, to file returns and pay any taxes that were due during this period, including quarterly estimated tax payments.

Dates for the tax relief filing were first set on September 4 for Florida and September 5 for Puerto Rico and the Virgin Islands. If, however, an affected taxpayer receives a late filing or late payment penalty notice that has a filing, payment, or deposit due date falling within the extension period, the taxpayer must contact the number provided in the notice to have the penalty abated. Additional information on other possible return or payment actions that may qualify for the extension is available on the IRS disaster relief page.

But May said that the government has been holding regular meetings to coordinate its response. For example, if affected plans have premium filing deadlines from September 4, 2017, through January 31, 2018, the PBGC will waive applicable penalties but not the applicable interest charge.

"Our thoughts and prayers are with everyone impacted by Hurricane Irma", said David J. Bronczek, president and chief operating officer of FedEx Corp.