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13729: Disaster Relief - Messages, Payments, Data Entry, and IRS Announcements


Hurricane + Disaster Relief

Can I arrange a later payment if the deadline is extended? How do I include disaster info in Drake Tax? Where can I find a list of IRS disaster relief announcements?  

 

Choose from the following sections to learn more about entering disaster information in Drake Tax: 

The following EF Messages are produced preventing e-file of the federal return when an invalid date is entered:

  • Individual (1040), Fiduciary (1041) and Tax Exempt (990) - EF Message 5299
  • Corporate (1120) - EF Messages 0008 and 0009
  • S-corp (1120-S) - EF Messages 0036 and 0037

Generally, you are unable to choose a direct debit payment date that is after the due date for all filers. Payments can be arranged with the PMT screen, and you can enter a Requested Payment Date on the PMT screen, however, it must meet the following guidelines or you cannot e-file the federal return as it would be rejected (IRS reject FPYMT-072-01). The EF message that is produced varies depending on the return type being filed, however, the federal guidelines are all the same:

  • The date cannot be prior to five days before the current date.
  • If the return is transmitted to the IRS on or before the due date in the current processing year, the Requested Payment Date cannot be later than the regular due date.
  • If the return is transmitted to the IRS after the due date, the Requested Payment Date cannot be later than the current date.

IMPORTANT: The IRS rules apply even when a disaster declaration extends the payment due date for certain taxpayers. The IRS would reject the return with reject FPYMT-072-01 if the payment shows a later date. The only way to schedule a payment for a later date is online at https://www.irs.gov/payments (1040 filers) or https://www.eftps.gov/eftps/ (1120, 1120-S, 1041, 990 filers).

Some states may have different guidelines. The PMT screen has an override field to enter a Requested Payment Date for the state payment. You will need to review the Transaction Summary in view mode to verify payment dates and check for EF messages for the state return to ensure that it can be arranged for the desired date and e-filed. You may need to make payment arrangements outside of Drake Tax if attempting to pay after the original due date for all filers. 

Letter and Filing Instructions

You can use the COMM screen to adjust the return due dates that appear on the letter and filing instructions. This does not affect payment dates (see above for more details on payments). 

Data Entry

For applicable taxpayers to receive the relief indicated below, nothing is required to be entered or indicated if the taxpayer’s address of record is located in the disaster area. If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment, or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.

Taxpayers with an address outside the disaster area that qualify for relief will need to contact the IRS at (866) 562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

A Disaster Designation entry field is available on the MISC screen. This field should be used to indicate if the return is subject to disaster special rules. Be sure to include the type of disaster and location of the disaster area. The disaster designation field is limited to 75 characters, including spaces. 

In Drake18 and Drake17, some common disasters can be selected from a drop list. The designated name is limited to 50 characters, including spaces. Be sure to enter the type of disaster and location of the disaster area in the lower box. 

In Drake16 and prior, a Disaster designation field is located on the PRNT screen in 1040 returns. An entry in this field will print on state returns that require it. The field accepts up to 22 characters. The literal is also transmitted if the return is electronically filed, but nothing is printed on the federal 1040.

See the IRS Tax Relief in Disaster Situations web page for announcements. Some recent relief announcements are included below:

IRS Notice CP14

The IRS recently sent notices to taxpayers who had a balance due for tax year 2022. Taxpayers in a federally declared disaster area should review the insert that explains that they still have until the extended deadline to pay their amount due. Per the IRS alert: 

"The IRS reassures California taxpayers that they continue to have an automatic extension until later this year to file and pay their taxes for those covered by disaster declarations in the state. The IRS Notice CP14, the current mailings being received by some taxpayers, are for taxpayers who have a balance due, and they are sent out as a legal requirement. While the notice received by taxpayers says they need to pay in 21 days, most California taxpayers have until later this year to pay under the disaster declaration. Taxpayers in federally declared disaster areas in other states who receive this notice also have additional time to pay; a full listing of disaster areas in various states is available. These letters include a special insert that notes the payment date listed in the letter does not apply to those covered by a disaster declaration, and the disaster dates remain in effect."


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