Hurricane Helene hit Florida on September 26, 2024, as a Category 4 hurricane, causing widespread devastation. The storm extended across 500 miles, affecting multiple states and resulting in at least 130 deaths, with many still missing. The aftermath led to flooding and power outages, making the recovery process slow and challenging.
In response to the disaster, the IRS has announced tax relief for individuals and businesses in the affected areas. This relief includes 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 tax payments, extending the traditional deadline of April 15, 2025.
The tax relief applies to counties and states designated by FEMA as disaster areas, offering an extension on tax filing and payment deadlines. Penalties for failing to make payroll and excise tax deposits will also be abated for affected taxpayers in specific timeframes. The relief periods vary by state and allow for flexible timing to alleviate financial burdens on individuals and businesses struggling to recover from the hurricane.
Taxpayers in the disaster area do not need to take any action to receive relief, as the IRS will automatically provide filing and penalty relief to those with an IRS address of record in the affected areas. However, individuals or businesses outside the disaster area but with necessary records located within the affected area should contact the IRS for assistance. Additionally, tax preparers serving clients outside the disaster area can request relief for their clients through the bulk requests option on the IRS website.
Casualty loss deductions are available for individuals and businesses in federally declared disaster areas, allowing for deductions on tax returns for losses incurred due to the hurricane. Taxpayers should consult with a tax professional for assistance in claiming these deductions and ensuring compliance with necessary requirements. Relief payments received for disaster-related expenses can be excluded from gross income, providing financial assistance to those in need.
For further information and details on other tax-related actions qualifying for relief, taxpayers can visit the IRS disaster assistance page. The page offers resources and guidance on filing extensions, penalty abatements, and exclusions for disaster relief payments. Additionally, retirement plan participants affected by the hurricane may be eligible for special distributions or hardship withdrawals, subject to specific rules and guidance from their plan administrators.
