Insights for Alaska's small businesses
Welcome to the Denali Bookkeeping Services blog, your trusted source for financial guidance and news tailored for small businesses in Wasilla and across Alaska. We're dedicated to helping you navigate the complexities of bookkeeping and finance. Stay informed with our expert articles, shared every 7 days, to empower your business for success. We're glad you're here to learn and grow with us!
Alaska earthquake relief: automatic extensions
In the wake of the devastating earthquake on November 30, 2018, in Alaska, small business owners and individuals may qualify for significant tax relief from the Internal Revenue Service. Following the President's major disaster declaration, the IRS has announced automatic filing and payment relief for affected taxpayers. If your business or residence is located in the Municipality of Anchorage, Kenai Peninsula Borough, or Matanuska-Susitna Borough, you are likely covered.
Eligibility and deadlines for tax relief
The IRS permits postponement for certain deadlines falling between November 30, 2018, and April 30, 2019. This includes 2018 individual income tax returns and payments due April 15, 2019, quarterly estimated income tax payments for January 15 and April 15, 2019, and quarterly payroll and excise tax returns due January 31, 2019. Penalties on payroll and excise tax deposits due between November 30, 2018, and December 17, 2018, will be abated if made by December 17, 2018. If you receive a late penalty notice for a period within the postponement, call the number on the notice. The IRS automatically identifies taxpayers in the covered disaster area; however, if you are outside the area but your records are affected, call the IRS disaster hotline at 866-562-5227 to request this tax relief. Affected taxpayers are defined as those living or having a business in the covered area, those with necessary records in the area, and relief workers or individuals injured/killed in the disaster.
Understanding casualty losses and how to claim them
Under section 7508A, affected taxpayers have until April 30, 2019, to file most tax returns and perform other time-sensitive actions due within the postponement period. This includes various income, estate, trust, partnership, S corporation, gift, and employment tax returns, as well as Form 5500 series returns and relief pertaining to like-kind exchanges. Important exceptions include information returns like W-2s and 1099s, although penalty relief for certain deposits still applies. Additionally, affected taxpayers can claim disaster-related casualty losses on their federal income tax return for either the year of the event or the prior year. Consult Publication 547 and Form 4684 for details, and mark "Alaska, Earthquake" on your forms for expedited processing. The IRS will also waive fees and expedite requests for copies of past tax returns (Form 4506, Form 4506-T) when you include the disaster designation. For general tax questions, call 800-829-1040, or 800-829-3676 to order forms. Denali Bookkeeping Services is here to help you navigate these details. Contact us for personalized assistance.