ECNETNews reports that the Internal Revenue Service (IRS) has launched significant tax relief measures for individuals and businesses affected by Hurricane Helene, impacting areas across seven states. The relief covers the entirety of Alabama, Georgia, North Carolina, and South Carolina, along with parts of Florida, Tennessee, and Virginia.
Affected taxpayers can now take advantage of extended deadlines to file both federal individual and business tax returns, with a new cutoff date set for May 1, 2025. This extension applies to various tax filings, including 2024 returns typically due in March and April 2025, as well as valid extensions for 2023 individual and corporate returns and quarterly estimated tax payments.
The IRS is extending this relief to all areas recognized by the Federal Emergency Management Agency (FEMA) as affected by the hurricane. This includes all counties in Alabama, Georgia, North Carolina, and South Carolina, 41 counties in Florida, eight in Tennessee, and several areas in Virginia, with possible extensions as FEMA makes additional disaster declarations.
Key Relief Provisions
Tax relief includes postponed filing and payment deadlines starting from:
- September 22, 2024, in Alabama
- September 23, 2024, in Florida
- September 24, 2024, in Georgia
- September 25, 2024, in North Carolina, South Carolina, and Virginia
- September 26, 2024, in Tennessee
This means individuals and businesses affected by the hurricane will have until May 1, 2025, to meet their filing and tax payment obligations for the following:
- 2024 returns due in March or April 2025
- 2023 federal returns under valid extensions (note: payments for previous returns remain due on their original dates)
- Quarterly estimated income tax payments due on January 15, 2025, and April 15, 2025
- Quarterly payroll and excise tax returns due on October 31, 2024, January 31, 2025, and April 30, 2025
Furthermore, businesses making payroll and excise tax deposits will receive penalty relief. For detailed information on state-specific relief periods, the IRS’s Around the Nation page is available for reference.
Automatic Relief Process
The IRS will automatically implement filing and penalty relief for taxpayers with a recorded IRS address in the designated disaster areas, eliminating the need for these individuals to contact the agency directly.
Taxpayers who might have relocated to affected regions after filing their returns, or those receiving late payment penalty notices, should reach out to the number on the notice to request penalty waivers.
Additionally, assistance will be offered to taxpayers residing outside the disaster zones if their necessary documentation is located within the disaster area. Affected individuals can connect with the IRS at 866-562-5227, and tax preparers with clients in safe zones may utilize the Bulk Requests from Practitioners for Disaster Relief feature.
Further Tax Relief Options
Taxpayers within federally designated disaster areas who have incurred uninsured losses may claim those losses on their 2024 or 2023 tax returns. The deadline for making this claim is October 15, 2025. It’s vital to include the FEMA declaration number when filing for disaster losses.
Qualified disaster relief payments, which cover essential expenses, are typically excluded from gross income and do not incur tax liabilities. For additional information, refer to Publication 525 regarding taxable vs. nontaxable income.
Taxpayers participating in retirement plans may also benefit from special disaster distributions or hardship withdrawals without incurring the usual 10% early withdrawal penalty. Specific rules and guidance can be found through their retirement plan.
As the situation evolves, the IRS may announce additional disaster-related relief measures.
