IRS Tax Relief for Hurricane Helene Victims

Hurricane Helene has swept through communities, leaving a significant impact on both individuals and businesses. The physical destruction and emotional toll have been matched by financial strain. However, there is a silver lining amid the devastation, as the IRS has announced special disaster-related tax relief provisions. These efforts aim to ease financial pressures and offer a beacon of hope in these challenging times.

 

IRS Tax Relief for Affected Areas

On October 1, 2024, the IRS announced tax relief for areas designated as disaster zones by FEMA. This includes all of Alabama, Georgia, North Carolina, and South Carolina, as well as parts of Florida, Tennessee, and Virginia. If you reside or operate in any of these areas, be sure to confirm your eligibility by checking the full list of states and counties on the IRS website.

 

Claiming Uninsured Disaster Losses

Individuals and businesses that suffered uninsured or unreimbursed disaster-related losses can claim these as deductions. You have the option of reporting these losses on your 2024 tax return or electing to claim them on your 2023 return. Deciding which year's tax return is more advantageous requires careful consideration, and it might be beneficial to consult with an accounting firm for guidance.

 

Individual Tax Relief Overview

For those in impacted areas, there's an extension until May 1, 2025, to file 2024 federal tax returns or submit any remaining 2023 returns under extension. While the filing deadline for the 2023 return is extended, taxes due for 2023 were still expected to be paid by April 15, 2024, and aren't eligible for further relief. Additionally, estimated tax payments due on January 15 and April 15, 2025, are now also extended until May 1, 2025.

 

Business Tax Relief Overview

Relief extends to businesses as well, with corporate tax returns due in March or April 2025 pushed to May 1, 2025. This applies to 2023 returns filed under an extension as well. The deadline for quarterly estimated tax payments is similarly extended, now due May 1, 2025, instead of January 15 or April 15. This relief includes quarterly payroll and excise tax returns, which are also due on May 1, 2025, instead of the original due dates of October 31, 2024, January 31, 2025, and April 30, 2025. Additionally, the IRS is offering penalty relief for late payroll and excise tax deposits, but it's essential to check specific state guidelines.