The states of Louisiana and Mississippi are responding to the recent flooding first with guidance on disaster recovery payments and income taxes. This guidance alerts us to their state revenue bulletins for details on these programs. Our prayers continue to be with you and your families.
From CCH State Tax Review, Vol 77, Issue 35:
The Louisiana Department of Revenue provided answers to frequently asked questions about personal income tax aspects of disaster recovery payments and income. Among other things, the answers addressed donations to or payments from a”GoFundMe” or other crowdfunding website; time spent as a volunteer; providing living space and meals for displaced persons; donating clothing, food, household goods, or other similar items; records required to substantiate a charitable deduction; casualty and theft losses for damaged or destroyed homes, household items, and vehicles; mitigation or qualified disaster relief payments; FEMA payments; and insurance payments. Revenue Information Bulletin No. 16-048, Louisiana Department of Revenue, August 22, 2016
The Mississippi Department of Revenue has announced that it will follow federal extensions granted to Louisiana residents directly affected by the severe storms and flooding that took place on August 11, 2016. Taxpayers residing in Louisiana counties designated as federally declared disaster areas have until January 17, 2017 to file individual income, corporate income and pass-through entity tax returns due on or after August 11, 2016, and before January 17, 2017. The department automatically provides interest and penalty relief on original or extended filing and payment due dates, including extended filing or payment due dates, that fall within the postponed period. Therefore, taxpayers residing in affected Louisiana counties do not need to contact the department to get relief. Relief does not provide an extension for payments on prior liabilities. Notice 80-16-003, Mississippi Department of Revenue, August 18, 2016
If you have any questions or would like guidance on this matter, please contact our office at 314-993-4285.