Hurricane Helene struck Florida on September 26, 2024, as a dangerous Category 4 storm, causing widespread devastation. As the recovery effort begins, the IRS has announced tax relief measures for individuals and businesses affected by the hurricane. This relief applies to areas designated by FEMA in Alabama, Georgia, North Carolina, South Carolina, Tennessee, Virginia, and certain counties in Florida. Affected taxpayers now have until May 1, 2025, to file various federal tax returns and make payments, extending the deadline beyond the usual April 15th due date.
The tax relief postpones various tax filing and payment deadlines for individuals and businesses affected by Hurricane Helene. Taxpayers in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia have until May 1, 2025, to meet their tax obligations. Penalties for failing to make payroll and excise tax deposits will be abated for a limited period in each state. The deadline also applies to quarterly estimated income tax payments, payroll, and excise tax returns due during the specified period, providing much-needed relief to those struggling in the aftermath of the storm.
To receive relief, most taxpayers do not need to take any action as the IRS will automatically provide filing and penalty relief to those in the disaster area. However, if an affected taxpayer does not have an IRS address of record in the disaster area, they should call the IRS to have any penalties abated. Taxpayers outside the disaster area who need to meet a deadline located in the affected area can contact the IRS for assistance. Additionally, disaster area tax preparers with clients outside the disaster area can utilize bulk requests for relief through the IRS.
Individuals and businesses in federally declared disaster areas are entitled to casualty loss deductions due to Hurricane Helene, despite restrictions imposed by the Tax Cuts and Jobs Act. Taxpayers can claim a casualty loss deduction for the year of the loss or the prior year, with an extended deadline until October 15, 2025. Qualified disaster relief payments received by affected taxpayers are generally excluded from gross income, providing financial assistance for recovery efforts. Additional relief options may be available for those participating in retirement plans or IRAs, with specific rules and guidance varying by plan.
For more information on disaster assistance, relief payments, and tax-related actions qualifying for relief, taxpayers can visit the IRS disaster assistance and emergency relief for individuals and businesses page. This resource provides detailed information on how individuals and businesses impacted by Hurricane Helene can navigate the tax implications of the storm and access the relief measures put in place by the IRS. With the extended deadline and penalty abatements, taxpayers in the affected areas can focus on recovery efforts without the added stress of looming tax obligations.
