As we all know, Hurricane Helene has had an immense impact on Alabama, Georgia, North Carolina, Tennessee, Virginia, and Florida. On October 2nd, the IRS announced that affected taxpayers of these states, 41 counties in Florida, and any area designated by the Federal Emergency Management Agency will receive tax relief. Due to the effects of Hurricane Milton, the IRS has expanded the relief benefits to all counties in Florida.
The IRS has exercised its authority to provide relief to taxpayers by postponing certain deadlines to individuals and business owners in the affected areas. For individuals and businesses in the designated areas affected by Hurricane Helene and Milton, the IRS has extended the deadline for filing returns, and making tax payments, including relief from late fees and penalties, until May 1, 2025. This deadline will now apply to:
(1) Individuals or businesses with 2024 returns that are normally due during March or April 2025;
(2) Individuals with valid extensions to file their 2023 returns which were due on October 15, 2024; and
(3) businesses with valid extensions for their 2023 returns which were due on October 15, 2024.
Separately, on October 11, 2024, FinCEN announced that victims of Hurricanes Helene and Milton who are required to file foreign bank and financial reports now have until May 1, 2025, to file for the calendar year 2023.
It’s important to note that individuals with valid extensions to file their 2023 returns will not receive relief for tax payments due with their 2023 returns, since those payments were due on April 15, 2024.
Also worth noting is that any affected taxpayer with an estimated income tax payment originally due on or after Sept. 22, 2024, will now have that payment postponed through May 1, 2025, and will not be subject to penalties for failure to pay as long as the payment is made on or before May 1, 2025. Taxpayers may also receive relief for participating in retirement plans or individual retirement arrangement(s) (IRAs) depending on the rules and guidance set up by the plan. Taxpayers can also claim uninsured or unreimbursed disaster-related losses on either the 2024 return filed next year or on their 2023 return, if not already filed.
Dealing with the effects of these storms is hard enough, but having the addition of dealing with tax filings and payments can make things even more stressful. If you have questions or concerns regarding your tax filing obligations, our KN+S tax professionals are here to assist.
Eric Zhang, Audit & Tax Associate at Katz, Nannis + Solomon, P.C. If you have any questions or would like to speak with one of our tax professionals, please contact our office at 781-453-8700.