ECNETNews reports that the Internal Revenue Service (IRS) has implemented tax relief measures for individuals and businesses in 25 counties across Minnesota that have been severely impacted by storms and flooding starting June 16, 2024. Taxpayers in these designated areas now have an extended deadline until February 3, 2025, to file federal tax returns and remit tax payments.
Affected Counties
The IRS is providing relief to areas recognized by the Federal Emergency Management Agency (FEMA). Currently, the counties eligible for assistance include Blue Earth, Carver, Cass, Cook, Cottonwood, Faribault, Fillmore, Freeborn, Goodhue, Itasca, Jackson, Lake, Le Sueur, Mower, Murray, Nicollet, Nobles, Pipestone, Rice, Rock, St. Louis, Steele, Wabasha, Waseca, and Watonwan, with potential for more counties to be included as further assessments are conducted.
Relief for Filing and Payments
This tax relief postpones various deadlines for tax filings and payments that fell between June 16, 2024, and February 3, 2025. Consequently, those affected will have until February 3, 2025, to file their tax returns and make necessary payments that were originally due during this timeframe, which includes:
- Individual, business, or tax-exempt organization returns with valid extensions to file 2023 federal returns.
- Quarterly estimated income tax payments originally due on June 17, September 16, 2024, and January 15, 2025.
- Quarterly payroll and excise tax returns due on July 31, October 31, 2024, and January 31, 2025.
Moreover, penalties for late payroll and excise tax deposits due between June 16 and July 1, 2024, will be forgiven if deposits are made by July 1, 2024.
Automatic Tax Relief and Support
The IRS will automatically grant filing and penalty relief to taxpayers who have an IRS address located within the impacted disaster areas. Taxpayers who relocated to these areas after filing a return and receive late filing or payment penalties should reach out to the IRS for penalty abatement. Additionally, the IRS will assist taxpayers living outside the disaster region but whose vital tax records are within the affected areas.
Options for Additional Tax Relief
Individuals and businesses suffering uninsured or unreimbursed losses due to the declared disaster can opt to claim such losses on either their 2024 return (to be filed next year) or their 2023 return (to be filed this year). They have until six months after the due date of their federal income tax return for the disaster year to make this decision, with a final deadline of October 15, 2025, for individuals.
Qualified disaster relief payments, including those received from various government entities for personal, family, living, or funeral expenses, as well as home repair or rehabilitation costs, are generally excluded from gross income. Additional relief options may also be available for participants in retirement plans or IRAs, offering special disaster distribution and hardship withdrawal options.
