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Tax Update: The Internal Revenue Service announced on December 14, victims of this weekend's tornadoes in Kentucky will have until May 16, 2022, to file various individual and business tax returns and make tax payments.

Following the recent disaster declaration issued by the Federal Emergency Management Agency (FEMA), the IRS is providing this relief to taxpayers affected by storms, tornadoes and flooding that took place starting on December 10 in parts of Kentucky, including Caldwell, Christian, Fulton, Graves, Hart, Hickman, Hopkins, Logan, Lyon, Marshall, Muhlenberg, Ohio, Taylor and Warren counties. But the IRS will provide the same relief to any other localities designated by FEMA in Kentucky or neighboring states. The current list of eligible localities is always available on the disaster relief page on IRS.gov.

Tax Update: Kentucky Disaster Relief Sales and Use Tax Refund.  KRS 139.519 provides that a legal building owner with damaged property from a disaster in a federally declared disaster area may qualify for a refund of the sales and use tax paid on the purchase of building materials for repair of the existing building or for construction to replace a destroyed building in the disaster area.

A disaster declaration has been issued for counties that were affected by severe storms, tornados, and flooding from December 10 to December 11, 2021. Those counties are Caldwell, Fulton, Graves, Hopkins, Marshall, Muhlenberg, Taylor, and Warren.

For each building, the legal building owner may receive 100% of the Kentucky sales and use tax actually paid for building materials, reduced by the amount of vendor compensation allowed under KRS 139.570, up to a maximum refund of $6,000.

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