FRANKFORT, Ky. (September 1, 2021) — The Kentucky Department of Revenue (DOR) will honor the recently announced IRS special tax relief for taxpayers in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance due to the effects of Hurricane Ida.
Under the provisions of KRS 131.081(11), Kentucky honors federal extensions related to disaster relief for filing of income tax returns, including payment of tax due. This extension to file and pay taxes does not apply to sales tax and other types of taxes. However, taxpayers with disaster-related delays who are seeking filing extensions or that have been assessed penalties for taxes other than income may contact the DOR to request an extension or a waiver of penalties.
Individuals and households affected by Hurricane Ida who reside or have a business in the FEMA disaster area qualify for tax relief. The declaration permits DOR to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after August 26, 2021 are postponed through January 3, 2022. This includes the October 15, 2021 extended deadline for filing 2020 individual income tax returns and paying any tax due.
The Kentucky tax extension allows affected taxpayers until January 3, 2022 to file Kentucky income tax returns and submit tax payments for the following taxes: individual income tax; corporate income tax; income tax withholding; and limited liability entity tax. The January 3, 2022 deadline also applies to quarterly estimated income tax payments, normally due on September 15, 2021.
Late filing and payment penalties will be waived for those affected taxpayers seeking this relief. Kentucky's tax laws have no provision for the waiver of interest.
Taxpayers are advised to label the top margin of the tax forms filed under this relief provision in large, red letters with the words "Hurricane Ida Relief."
Taxpayers requiring additional information or assistance on individual income taxes may contact the Department of Revenue at (502) 564-4581. For questions related to Corporation Income Tax and Pass-through Entities, contact (502) 564-8139.