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The IRS has introduced disaster tax relief measures for all individuals and businesses impacted by Hurricane Helene. This applies to the entire states of Alabama, Georgia, North Carolina, South Carolina, and specific regions of Florida, Tennessee, and Virginia. Taxpayers in these areas now have until May 1, 2025, to file federal individual and business tax returns and make payments.
Key Details of the Relief
This extended deadline includes 2024 individual and business returns typically due in March and April 2025, 2023 individual and corporate returns with valid extensions, and quarterly estimated tax payments. The IRS is providing relief to all areas designated by FEMA. In addition to full coverage for Alabama, Georgia, North Carolina, and South Carolina, 41 counties in Florida, eight in Tennessee, and six counties plus one city in Virginia are included in the relief zone.
Eligible taxpayers include individuals and businesses in the declared disaster areas, with relief also extending to future areas designated by FEMA related to Hurricane Helene. The full list of eligible areas is available on the IRS’s Tax Relief in Disaster Situations page on IRS.gov.
Filing and Payment Deadlines
The tax relief extends various filing and payment deadlines based on specific state start dates:
Alabama: Starting September 22, 2024
Florida: Starting September 23, 2024
Georgia: Starting September 24, 2024
North Carolina, South Carolina, Virginia: Starting September 25, 2024
Tennessee: Starting September 26, 2024
The relief period ends on May 1, 2025, meaning taxpayers in these areas have until this date to file returns and pay taxes originally due during this time.
Examples of Extensions
2024 Returns Due in March or April 2025: Individual and business returns due in early 2025 are now postponed to May 1, 2025.
2023 Returns with Valid Extensions: Extended 2023 returns are eligible, though payments due last spring remain ineligible.
2024 Estimated Tax Payments: Payments due January 15, 2025, and April 15, 2025, are now postponed.
Quarterly Payroll and Excise Tax Returns: Returns due October 31, 2024, January 31, and April 30, 2025, are postponed.
Penalty relief is also available for businesses needing to make payroll and excise tax deposits. Relief periods differ by state, and additional information can be found on the IRS’s Around the Nation page.
IRS Automatic Relief and Address Changes
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record within the disaster area. Taxpayers who moved to the affected area after filing a return may receive a late filing or payment penalty notice and should contact the IRS at the number on the notice to request penalty abatement.
The IRS will also assist taxpayers living outside the disaster area if their records necessary to meet filing deadlines are located in affected regions. Such individuals and relief workers can call the IRS at 866-562-5227 for assistance, and practitioners with clients in disaster areas can use the Bulk Requests from Practitioners for Disaster Relief option on IRS.gov.
Additional Relief Options
Uninsured or unreimbursed disaster-related losses can be claimed on either the 2024 return or the prior year’s 2023 return. Individual taxpayers have until October 15, 2025, to make this election. When claiming a loss, include the FEMA declaration number on the return.
Qualified Disaster Relief Payments
Qualified disaster relief payments are generally excluded from gross income. This exclusion covers government-issued payments for personal, family, living, funeral expenses, home repairs, or content replacement. More details are available in IRS Publication 525, Taxable and Nontaxable Income.
Special Relief for Retirement Accounts
Taxpayers affected by Hurricane Helene may also be eligible for specific disaster-related benefits related to retirement plans or IRAs. These can include special disaster distributions exempt from the 10% early distribution tax or hardship withdrawals. For more information, contact our office.
This coordinated federal response is based on damage assessments by FEMA. For disaster recovery resources, visit disasterassistance.gov.
Need Assistance? If you need support understanding how this disaster relief might affect you or your business, please reach out to us for expert tax preparation assistance.
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