IRS provides tax relief in response to the Maui fire

 Aug. 21, 2023

The Internal Revenue Service announced that victims of wildfires in parts of Hawaii that began on Aug. 8, 2023, now have until Feb. 15, 2024, to file various individual and business tax returns and make tax payments.

For people who live in Maui or have businesses in Maui, you may now have until February 15, 2024 to file certain 2022 tax returns.  This is available for personal taxes as well as entity tax returns.  

Please note that although you are not able to extend 2022 taxes that were due earlier in April, any remaining 2023 estimated taxes as well as other taxes that are due after August 8, 2023 can be delayed through the February 15, 2024 date.   

For those who suffered casualty losses, those losses may be deducted in 2022 or 2023 taxes.

Additional time is also granted for those who are involved in a 1031 exchange transaction.   

Tax relief payments received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents may be tax-free.   

Those needing to access IRA money may also avoid the 10% early distribution penalty and have additional time to repay those funds back into the retirement account. 

For more information regarding each of these tax relief items, visit the IRS website. Be sure to speak with your tax advisor on whether you qualify for any of these.

Please share this with anyone you know who may benefit. And if you are interested in helping those in need, a few clients of ours have joined forces to create a nonprofit charity aimed specifically to help the people of Maui rebuild at the Makai Foundation. Checkout this non-profit to make your tax-deductible donation.