On 10 September 2020, the Internal Revenue Service (IRS) has announced tax relief for tropical storm ‘Isaias’ victims in Puerto Rico. IRS states that tax returns and makes tax payments for individual and business has been extended until 30 November 2020.

Individuals and households who reside or have a business in the municipalities of Aguada, Hormigueros, Mayagüez, and Rincón qualify for tax relief. Taxpayers in localities added later to the disaster area will automatically receive the same filing and payment relief.

The declaration permits the IRS 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 29 July 2020, and before 30 November 2020, are postponed through November 30, 2020. This includes individual and business tax filers that had a valid extension to file their 2019 return due to run out on 15 October 2020. The IRS noted, however, that because tax payments related to these 2019 returns were due on 15 July 2020, those payments are not eligible for this relief.

The November 30 deadline applies to the third quarter estimated tax payment due on 15 September. It also applies to the quarterly payroll and excise tax returns normally due on 2 November. In addition, it applies to tax-exempt organizations, operating on a calendar-year basis, which had a valid extension due to run out on November 16. In addition, penalties on deposits due on or after 29 July 2020, and before 13 August 2020, will be abated as long as the tax deposits were made by 13 August 2020.