The Internal Revenue Service (IRS) has announced significant tax relief measures for individuals and businesses affected by Hurricane Helene.
The relief extends to seven states, including the entirety of Alabama, Georgia, North Carolina, and South Carolina, as well as parts of Florida, Tennessee, and Virginia.
Extended Deadlines
Taxpayers in the designated disaster areas now have until May 1, 2025, to file various federal tax returns and make tax payments. This extension applies to:
- 2024 individual and business tax returns normally due in March or April 2025
- 2023 tax returns with valid extensions
- Quarterly estimated income tax payments due on January 15 and April 15, 2025
- Quarterly payroll and excise tax returns due on October 31, 2024, January 31, and April 30, 2025
Disaster Losses
The IRS is offering flexibility for claiming disaster-related losses. Affected taxpayers can choose to claim these losses on either their 2023 or 2024 tax returns. Individual taxpayers have until October 15, 2025, to make this decision.
Automatic Relief
Tax relief is automatically provided to taxpayers with an IRS address of record in the disaster area. These individuals do not need to contact the agency to receive this relief.
Additional Considerations
- Penalties for failing to make payroll and excise tax deposits will be abated
- Taxpayers must write the FEMA declaration number on returns claiming losses
- Those outside the disaster area who require relief must contact the IRS at (866) 562-5227
State-Specific Relief Periods
The tax relief applies from the following dates, depending on the state:
- Alabama: September 22, 2024
- Florida: September 23, 2024
- Georgia: September 24, 2024
- North Carolina, South Carolina, and Virginia: September 25, 2024
- Tennessee: September 26, 2024
IRA and HSA Considerations
The relief also extends to deadlines for individual retirement accounts (IRAs), Health Savings Accounts (HSAs), and Coverdell Education Savings Accounts (CESAs).
Exclusions from Relief
It’s important to note that the postponement does not apply to certain information returns, including W-2, 1094, 1095, 1097, 1098, or 1099 series; Forms 1042-S, 3921, 3922 or 8027; or to employment and excise tax deposits.
This comprehensive tax relief package aims to provide crucial support to those impacted by Hurricane Helene, allowing them to focus on recovery efforts without the added stress of immediate tax obligations.
FAQs
Who qualifies for this tax relief?
Taxpayers in designated disaster areas in Alabama, Georgia, North Carolina, South Carolina, and parts of Florida, Tennessee, and Virginia.
What is the new deadline for filing taxes?
May 1, 2025, for various federal tax returns and payments.
Can I claim Hurricane Helene losses on my tax return?
Yes, you can claim uninsured or unreimbursed losses on either your 2023 or 2024 tax return.
Do I need to contact the IRS to receive this relief?
No, relief is automatic for those with an IRS address of record in the disaster area.