IRS Relief Extensions for Hurricane Helene Victims

Hurricane Helene has wreaked havoc on numerous communities, leaving behind a trail of physical, emotional, and financial challenges. Recognizing this significant impact, the IRS has announced special disaster-related tax relief provisions aimed at alleviating financial pressure on affected individuals and businesses.

IRS Tax Relief for Affected Areas

On October 1, 2024, the IRS declared tax relief for disaster areas designated by FEMA, which includes entire states like Alabama, Georgia, North Carolina, and South Carolina, along with parts of Florida, Tennessee, and Virginia.

Please ensure to check the complete list of eligible states and counties on the IRS website to confirm your qualification for this relief.

Claiming Uninsured Disaster Losses

Individuals and businesses suffering uninsured or unreimbursed disaster-related losses have the opportunity to claim these as deductions. These losses can be reported on the 2024 tax return, or, alternately, claimed on the 2023 return. Evaluating the more advantageous tax year for these deductions is crucial, and consultation with accounting firms like ours is advisable for the best outcome.

Individual Tax Relief Overview

Individuals in the devastated areas now have until May 1, 2025, to file their 2024 federal tax returns or submit any pending 2023 returns that were under an extension. While the filing deadline for 2023 returns has been extended, taxes due for 2023 were expected by April 15, 2024, and are not eligible for further relief. Additionally, estimated tax payments due on January 15 and April 15, 2025, are also deferred until May 1, 2025.

Business Tax Relief Overview

Relief provisions for businesses include extensions for corporate tax returns due in March or April 2025, now postponed to May 1, 2025. Quarterly estimated tax payments are likewise extended to May 1, 2025, instead of the original January 15 or April 15 deadlines. The deadlines for quarterly payroll and excise tax returns have been moved to May 1, 2025, from the previous due dates of October 31, 2024, January 31, 2025, and April 30, 2025.

Additionally, businesses might be eligible for IRS penalty relief for late payroll and excise tax deposits. As relief varies by state, verifying specific guidelines through consultation or IRS resources is essential.

Taking timely advantage of these extended deadlines and other relief options is crucial to minimizing further financial strain. Although tax relief won't solve all issues, it's an important step toward recovery. To ensure you're maximizing these relief opportunities, reach out to our accounting team today.