The Kentucky Department of Revenue will honor the recently announced IRS special tax relief for taxpayers in any area designated by FEMA as qualifying for individual assistance due to flooding. Individuals and households who reside or have a business in Breathitt, Clay, Floyd, Johnson, Knott, Leslie, Letcher, Magoffin, Martin, Owsley, Perry, Pike and Wolfe counties qualify for this income tax relief. Affected taxpayers with a valid extension will have until Nov. 15, 2022, to file Kentucky tax returns for individual income tax, corporate income tax, and limited liability entity tax.
Estimated income tax payments due on Sept. 15, 2022, are also allowed an extension until Nov. 15, 2022. Payroll withholding filings and payments due between July 26 and Nov. 15, 2022, are also eligible for this extension. Late filing and payment penalties will be waived for those affected taxpayers seeking relief based on these tax categories. Kentucky's tax laws do not allow interest to be waived due to natural disasters.
Taxpayers should label the top margin of the tax forms filed under this relief provision in large, red letters with the words "Kentucky Flood Relief."