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A building and trees lit up by fire in Colorado
A house burns as a wind-driven wildfire forced evacuation of the Superior suburb of Boulder, Colorado, on December 30,2020.

Eric English/via REUTERS

  • The Marshall fire burned more than 6,000 acres in Boulder county, Colorado, destroying nearly 1,000 structures.
  • The IRS is giving residents affected by the fire until May 16 to file individual or business tax returns, and make tax payments.
  • Farmers who usually file returns or make payments due on March 1 also get an extension until May 16.

Starting on Thursday, December 31, the Marshall wildfires burned 6,000 acres in Denver’s Boulder County, destroying 991 structures and damaging another 127, reported The Denver Post. Many of the structures burned and damaged were family homes.

The fires followed months of drought in the Denver area, though AP News reports police are still investigating what actually started the fires. 

To support the families and businesses affected by the fires, the IRS is providing an extension for individual or business tax filing and tax payments.

The new deadline for Colorado fire victims is May 16

Individuals and businesses affected by the fires now have until May 16 to file tax returns and make tax payments. This includes:

  • Various 2021 tax returns, originally due on March 15 and April 18
  • Tax payments, originally due on April 18

Affected taxpayers also have until May 16 to make their 2021 IRA contributions, according the IRS.

Colorado fire victims may deduct disaster losses from their taxes

Under Topic No. 515 Casualty, Disaster, and Theft Losses, the IRS states that individuals, the self-employed, and small businesses may deduct disaster losses from their taxes. Generally, you may deduct disaster losses relating to your home, household items, property, and vehicles affected by natural disasters.

If your losses are covered by insurance, you can’t deduct insurance coverage from your taxes unless you received your reimbursement late, or the reimbursement does not cover the full total of your disaster losses. Generally, disaster losses are included in the tax return for the year that the disaster occurred. This means that disaster losses related to the Marshall fires must be included in your 2022 tax returns to be filed next year.

Be sure to write the FEMA declaration number 4634DR on any return claiming a loss related to the fire.

Farmers who normally file their returns and make tax payments now have until May 16

Farmers within the disaster area, who would normally make tax payments and file returns due on March 1, now have until May 16. 

The May 16 deadline applies to quarterly estimated income tax payments due on January 18 and April 18. The IRS also says farmers can skip making their fourth quarter estimated tax statements, normally due on January 18, 2022, and include it with the 2021 return they file, which is now due on May 16.

The IRS will also provide filing and penalty relief for affected taxpayers

You do not need to contact the IRS in order to waive filing and penalty fees if you are affected by the Marshall fires.

Additionally, the IRS will work with taxpayers who live outside the disaster area, but were affected by the fires. This includes “workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization,” according to the IRS.

Contact the IRS at 866-562-5227 for more information.

Read the original article on Business Insider

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