ECNETNews reports that the Internal Revenue Service (IRS) has announced significant tax relief for individuals and businesses across Louisiana affected by Tropical Storm Francine. Those impacted will have until February 3, 2025, to file federal tax returns and make necessary payments.
This assistance comes following the recent designation of affected areas by the Federal Emergency Management Agency (FEMA). All individuals and businesses in Louisiana are eligible for this relief. A comprehensive list of eligible localities is available on the IRS website under “Tax Relief in Disaster Situations.”
Filing and Payment Extensions
The IRS will be postponing various tax filing and payment deadlines for those impacted by the storm. This relief covers deadlines originally set between September 10, 2024, and February 3, 2025, allowing taxpayers in Louisiana until February 3, 2025, to file returns and pay taxes due during this period.
This extension is applicable to individuals and businesses that have valid extensions for their 2023 federal tax returns. However, payments for returns initially due prior to the storm are not included in this extended deadline. Notably, the new deadline applies to:
- Quarterly estimated income tax payments due on September 16, 2024, and January 15, 2025.
- Quarterly payroll and excise tax returns due on October 31, 2024, and January 31, 2025.
- Penalties for payroll and excise tax deposits scheduled on or after September 10, 2024, and before September 25, 2024, will be waived if the deposits are made by September 25, 2024.
Additional information regarding other returns, payments, and qualifying actions for relief during this extended period is available on the IRS website under “Disaster Assistance and Emergency Relief for Individuals and Businesses.”
Automatic Relief for Taxpayers
The IRS will automatically grant filing and penalty relief to all taxpayers whose address of record is within the designated disaster area, eliminating the need for these individuals and businesses to contact the IRS for relief.
Taxpayers who moved into the disaster area after filing their returns may still qualify for this relief. If they receive a penalty notice for late filing or payment, they are advised to call the number on the notice to request an abatement of the penalty.
The IRS is also extending support to taxpayers living outside the disaster area if their necessary records for meeting filing deadlines are located in the affected region. Those impacted are encouraged to contact the IRS directly for assistance. This includes workers involved in recognized governmental or charitable relief efforts and tax preparers with clients in the affected areas.
Options for Claiming Disaster Losses
Individuals and businesses in the disaster zone who have suffered uninsured or unreimbursed losses due to the storm can elect to claim these losses on either their 2024 or 2023 tax return. Taxpayers have until October 15, 2025, to make this selection. When reporting the loss, they should include the FEMA declaration number 3614-EM on their return. Further guidance is provided in Publication 547, which deals with casualties, disasters, and thefts.
Furthermore, qualified disaster relief payments are generally excluded from gross income, covering amounts received for necessary personal, family, living, or funeral expenses, along with repairs to homes or their contents. Detailed information on this exclusion can be found in Publication 525, related to taxable and nontaxable income.
Affected taxpayers may also qualify for special considerations concerning retirement plans and Individual Retirement Arrangements (IRAs), which may allow for special disaster distributions without the 10% early withdrawal penalty or hardships withdrawals, subject to the specific rules of each plan.
