The Internal Revenue Service (IRS) has granted disaster tax relief for individuals and businesses affected by Hurricane Helene. This includes those impacted in the entire states of Alabama, Georgia, North Carolina, and South Carolina, as well as parts of Florida, Tennessee, and Virginia.
Taxpayers in these locations now have until May 1, 2025, to file federal individual and business tax returns and make tax payments. This includes 2024 returns normally due in March and April 2025, as well as 2023 individual and corporate returns with valid extensions and quarterly estimated tax payments.
The relief extends to all areas designated by the Federal Emergency Management Agency (FEMA). In addition to all of Alabama, Georgia, North Carolina and South Carolina, this includes 41 counties in Florida, eight counties in Tennessee, and six counties in Virginia. Individuals and households located in these regions qualify for the extended deadlines.
Key deadlines postponed to May 1, 2025, include:
2024 individual and business returns normally due in March or April 2025.
2023 federal returns for individuals, businesses or tax-exempt organizations that have valid extensions to file these returns. (Note: payments due earlier are not eligible for extension.)
2024 quarterly estimated income tax payments normally due on Jan. 15, 2025 and 2025 estimated tax payments normally due on April 15, 2025.
Quarterly payroll and excise tax returns normally due on Oct. 31, 2024, and Jan. 31 and Apr. 30, 2025.
Additionally, the IRS is providing penalty relief to businesses in these areas that make payroll and excise tax deposits. Relief periods vary by state. The IRS is automatically providing filing and penalty relief to any taxpayer with an IRS address located in the disaster area. These taxpayers do not need to contact the IRS to get this relief. Taxpayers who moved to the disaster area after filing their returns may need to contact the IRS to address any potential penalties.
The IRS will also work with taxpayers who live outside the disaster area but whose records are located in the affected area. These taxpayers need to contact the IRS at 866-562-5227.
Special Disaster Distributions
Individuals and businesses in the federally declared disaster areas who suffered uninsured or unreimbursed disaster-related losses on either their 2023 or 2024 tax returns, with an extended election period until October 15, 2025. Qualified disaster relief payments are generally excluded from gross income.
Affected taxpayers who participate in a retirement plan or individual retirement arrangement may be eligible to take a special disaster distribution without being subject to the 10% early-distribution penalty. This special distribution also allows taxpayers to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each retirement plan and IRA have their own rules and guidance that participants must follow.
For further details on eligibility and relief options, affected taxpayers are encouraged to visit IRS.gov or call the IRS directly. The IRS may also provide additional relief as assessments continue.
