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The Internal Revenue Service (IRS) has announced disaster tax relief for individuals and businesses impacted by Hurricane Helene. This relief extends to the entire states of Alabama, Georgia, North Carolina, and South Carolina, as well as parts of Florida, Tennessee, and Virginia.
Taxpayers in these areas now have until May 1, 2025, to file various federal individual and business tax returns and make payments. This includes 2024 individual and business returns typically due in March and April 2025, as well as 2023 returns with valid extensions and quarterly estimated tax payments.
The IRS is offering relief to all areas designated by the Federal Emergency Management Agency (FEMA). In addition to Alabama, Georgia, North Carolina, and South Carolina, the relief currently covers 41 counties in Florida, eight counties in Tennessee, and six counties and one city in Virginia.
Individuals and businesses located in these designated areas are eligible for tax relief, which will also extend to other regions receiving FEMA disaster declarations related to Hurricane Helene. A current list of eligible areas is available on the IRS’s Tax Relief in Disaster Situations page.
The tax relief postpones various filing and payment deadlines starting from September 22, 2024, in Alabama; September 23 in Florida; September 24 in Georgia; September 25 in North Carolina, South Carolina, and Virginia; and September 26 in Tennessee. The relief period will end on May 1, 2025. Therefore, affected individuals and businesses will have until this date to file returns and pay taxes originally due during this timeframe.
This means the May 1, 2025, deadline will now apply to:
Individuals or businesses with a 2024 return normally due in March or April 2025.
Any individual, business, or tax-exempt organization with a valid extension to file their 2023 federal return (note that payments due last spring are not eligible for this extra time).
2024 quarterly estimated income tax payments due on January 15, 2025, and estimated payments for 2025 due on April 15, 2025.
Quarterly payroll and excise tax returns normally due on October 31, 2024, and January 31 and April 30, 2025.
Additionally, the IRS is providing penalty relief for businesses making payroll and excise tax deposits, with specific relief periods varying by state. More information can be found on the IRS’s Around the Nation page.
The Disaster Assistance and Emergency Relief page outlines other returns, payments, and tax-related actions that qualify for relief during the postponement period. Notably, areas that previously received relief following Tropical Storm Debby will have their deadlines further extended to May 1, 2025.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address located in the disaster area; no action is required from these taxpayers.
Taxpayers who may not have an IRS address in the disaster area—such as those who moved there after filing their return—might receive late filing or payment penalty notices. In such cases, they should contact the number on the notice to request a penalty abatement.
The IRS will also assist any taxpayer living outside the disaster area whose necessary records are located within it. Affected taxpayers residing outside the disaster area should call the IRS at 866-562-5227 for assistance. This also applies to workers involved in relief efforts affiliated with recognized organizations. Tax preparers with clients in the disaster area can use the Bulk Requests from Practitioners for Disaster Relief option on IRS.gov.
Individuals and businesses in federally declared disaster areas who experienced uninsured or unreimbursed losses can choose to claim these on either their current year return (2024) or the previous year's return (2023). They have until six months after the due date of their federal income tax return for the disaster year to make this election, which for individual taxpayers means until October 15, 2025. It's essential to include the FEMA declaration number on any return claiming a loss. For further details, refer to Publication 547, Casualties, Disasters, and Thefts.
Qualified disaster relief payments are generally excluded from gross income, allowing affected taxpayers to exclude amounts received from government agencies for reasonable personal, family, living, or funeral expenses, as well as for home repairs or content replacements. See Publication 525, Taxable and Nontaxable Income, for more information.
Additional relief options may be available for taxpayers participating in retirement plans or individual retirement arrangements (IRAs). For example, they might qualify for a special disaster distribution exempt from the 10% early withdrawal penalty, which allows them to spread the income over three years. Hardship withdrawals may also be possible, but each plan or IRA has specific rules to follow.
The IRS may announce further disaster relief measures in the future.
This tax relief is part of a coordinated federal response to the storm's damage, based on local assessments by FEMA. For more information on disaster recovery, visit disasterassistance.gov.
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