IRS to Provide Tax Relief to Flood Victims

by | Oct 7, 2015 | Uncategorized

IRS Provides Tax Relief to South Carolina Flood Victims; Oct. 15 Tax Deadline Extended to Feb. 16

WASHINGTON ––South Carolina flood victims, including individuals and businesses that previously received a tax-filing extension to Oct. 15, will have until Feb. 16, 2016, to file their returns and pay any taxes due, the Internal Revenue Service announced today. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief.
Following this week’s disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA), the IRS said that affected taxpayers in Berkeley, Charleston, Clarendon, Dorchester, Georgetown, Horry, Lexington, Orangeburg, Richland, Sumter and Williamsburg Counties will receive this and other special tax relief. Other locations may be added in coming days, based on damage assessments by FEMA.
The tax relief postpones various tax filing and payment deadlines that occurred starting on Oct. 1, 2015. As a result, affected individuals and businesses will have until Feb. 16, 2016, to file these returns and pay any taxes due. Besides the Oct. 15 extension deadline, this also includes the Jan. 15, 2016, deadline for making quarterly estimated tax payments. A variety of business tax deadlines are also affected including the Nov. 2, 2015, and Feb. 1, 2016, deadlines for quarterly payroll and excise tax returns.
The IRS will abate any interest, late-payment or late-filing penalty that would otherwise apply. The agency automatically provides this relief to any taxpayer with an IRS address of record located in the disaster area. Taxpayers need not contact the IRS to get this relief.

Beyond Designated Disaster Areas
The IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227.
Individuals and businesses who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either last year’s or this year’s return. Claiming these casualty loss deductions on either an original or amended 2014 return will get the taxpayer an earlier refund but waiting to claim them on a 2015 return could result in greater tax savings depending upon other income factors.
In addition, the IRS is waiving late-deposit penalties for federal payroll and excise tax deposits normally due on or after Oct. 1 and before Oct. 16 if the deposits are made by Oct. 16, 2015. Details on available relief can be found on the disaster relief page on IRS.gov.
The tax relief is part of a coordinated federal response to the damage caused by severe storms and flooding and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.
Disaster victims in other parts of the country also qualify for tax relief, based on federal disaster declarations issued earlier this year. Currently, individuals and businesses in parts of California, Kentucky, Texas and the Northern Mariana Islands may qualify for filing and payment relief. See the IRS Disaster Relief page for details.

Thank you to the IRS Newswire for sending this information and providing the details in issue number IR-2015-112.

SC Identity Theft Protection News

by | Oct 25, 2013 | Uncategorized

In 2012, the SC Department of Revenue was hacked and nearly every South Carolina citizen and business became at risk of identity theft. In response the State of South Carolina has offered free credit monitoring through Experian. That contract expires this month.

New coverage begins October 24 through CSIdentity Corp.  The State of South Carolina is paying CSIdentity up to $8.5 million to provide credit monitoring to anyone affected by the breach of state computers, so there is no charge to you for the service. However, the initial service is not transferable between the two companies.  Therefore, you will need to sign-up again for the free credit monitoring.

Eligible taxpayers can now sign up for the identity protection through CSIdentity by doing one of the following:

Click here
Visit www.scidprotection.com
Call 855-880-2743

Enrollment will remain open until October 1, 2014, and CSIdentity’s service will end October 31, 2014, unless renewed by the State of South Carolina.

More information regarding the changeover also is available through the South Carolina Department of Revenue website, www.sctax.org.

S.C. recognized for business friendly policies.

by | Dec 21, 2012 | Uncategorized

The Small Business & Entrepreneurship Council ranked South Carolina as one of the nations entrepreneur-friendly states. The index takes a look at 46 different policy measures including an assortment of tax, regulatory, and government spending measures. The Palmetto State was ranked No.14 on the council’s annual index of states with the friendliest policies and lowest costs for small business. According to the council, South Carolina earned its ranking for our fairly low individual capital gains tax, no inheritance tax, low consumption- based taxes, low fuel taxes; and a low number of health insurance mandates. However, our 7% personal income tax plus high dividend and interest taxes were listed as negatives, along with high workers compensation costs and a high crime rate.

South Dakota ranked as the councils No. 1 entrepreneur-friendly state followed by Nevada at No. 2; Texas, No. 3; Wyoming, No.4; and Florida, No.5.

In contrast, the states with the least favorable policies include Maine at No. 46; New York at 47, Vermont at 48, New Jersey at 49, and California at No. 50.

“Small businesses are benefiting from policy competition between the states and it is encouraging to see leadership on key issues such as fiscal reform, sensible spending, and tax and regulatory relief.” Karen Kerrigan council president  and CEO.

For more information on the Small Business & Entrepreneurship Council click here.