FRANKFORT, Ky. (May 14, 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 severe storms, flooding, landslides and mudslides in Kentucky that began February 27, 2021.
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 type of taxes. However, taxpayers with disaster-related delays that 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 severe storms, flooding, landslides and mudslides that reside or have a business in Bell, Boyd, Breathitt, Calloway, Carter, Casey, Clark, Clay, Cumberland, Edmonson, Elliott, Estill, Floyd, Franklin, Graves, Harlan, Jackson, Johnson, Knott, Knox, Lawrence, Lee, Leslie, Letcher, Lincoln, Magoffin, Marion, Martin, Mason, Menifee, Morgan, Ohio, Owsley, Perry, Pike, Powell, Pulaski, Rockcastle, Union, Whitley, and Wolfe counties 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 February 27, 2021, and before June 30, 2021 are postponed through June 30, 2021. This includes the May 17 deadline for filing 2020 individual income tax returns and paying any tax due.
The Kentucky tax extension allows affected taxpayers until June 30, 2021 to file Kentucky income tax returns and submit tax payments for the following taxes: individual income tax; corporate income tax; and income tax withholding. The June 30, 2021 deadline also applies to the first quarter estimated tax payment of income tax, normally due on April 15, and the second quarter payment normally due on June 15.
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 "Kentucky Severe Storm 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.