IRS provides tax relief for victims of Hurricane Helene and Tropical Storm Debby
Extended tax deadlines for disaster-affected taxpayers
The IRS has announced comprehensive tax relief for individuals and businesses affected by Hurricane Helene and Tropical Storm Debby.
These taxpayers, located across multiple states, will benefit from postponed deadlines for filing federal tax returns and making payments. The extended deadline for most affected areas is now May 1, 2025.
Overview of affected areas
- Hurricane Helene relief: The relief applies to all counties in Alabama, Georgia, North Carolina, and South Carolina, as well as certain counties in Florida, Tennessee, and Virginia. Taxpayers in these areas are eligible for extended deadlines for various tax filings and payments.
- Tropical Storm Debby relief: Certain counties in Florida affected by Tropical Storm Debby now have their deadlines postponed to May 1, 2025. However, for the 20 counties that received Debby-related relief but not Helene-related relief, the deadlines remain February 3, 2025.
Tax relief details
The tax relief postpones a range of tax filing and payment deadlines that occurred or will occur during the period from August 1, 2024, through May 1, 2025.
Affected individuals and businesses have until May 1, 2025, to file their returns and pay any taxes originally due during this period.
This includes:
- Individual and business tax returns: Applies to those with valid extensions for their 2023 returns, which were originally set to expire on October 15, 2024.
- Quarterly estimated tax payments: Deadlines for payments due on September 16, 2024, January 15, 2025, and April 15, 2025, are extended to May 1, 2025.
- Quarterly payroll and excise tax returns: Deadlines for filings due on October 31, 2024, January 31, 2025, and April 30, 2025, are postponed to May 1, 2025.
- Penalty abatement: Penalties for payroll and excise tax deposits due on or after September 23, 2024, and before October 8, 2024, will be abated as long as deposits are made by October 8, 2024.
Casualty losses and other relief options
Taxpayers in federally declared disaster areas have the option to claim disaster-related casualty losses on either the return for the year the loss occurred (2024) or the prior year’s return (2023).
This provides flexibility in determining the most advantageous filing year to claim these losses.
Additionally, affected taxpayers are eligible for:
- Qualified disaster relief payments: These payments are generally excluded from gross income. They can include amounts received from government agencies for necessary personal, family, living, or funeral expenses, as well as for repairs to homes and replacement of personal property.
- Retirement plan relief: Special provisions for disaster distributions from retirement plans or IRAs allow for early withdrawals without the additional 10% tax and permit spreading income over three years. Taxpayers may also be eligible for hardship withdrawals depending on plan rules.
Who qualifies for the relief?
The IRS automatically identifies taxpayers whose principal residence or place of business is located in the covered disaster area based on previously filed returns.
These taxpayers do not need to contact the IRS to get relief.
Taxpayers outside the covered area, but whose records necessary to meet a deadline are located in the disaster area, should contact the IRS Disaster Hotline at 866-562-5227 to request relief.
This also includes workers assisting with disaster relief efforts affiliated with recognized government or philanthropic organizations.
Additional considerations for relief eligibility
Affected taxpayers who receive late filing or late payment penalty notices for deadlines falling within the postponement period should contact the IRS using the number provided on the notice to have the penalties abated.
Tax professionals and preparers located in the disaster area can use the Bulk Requests from Practitioners for Disaster Relief option on IRS.gov for clients located outside the disaster area.
Key takeaways
- Affected taxpayers in designated disaster areas have until May 1, 2025, to file federal returns and make payments that were originally due from August 1, 2024, through May 1, 2025.
- Penalty relief is automatically applied, but taxpayers outside the disaster area should contact the IRS for assistance if necessary.
- The relief includes options for claiming casualty losses, retirement plan withdrawals, and other disaster-related tax provisions.