Hurricane Helene has left a profound impact, both physically and emotionally. For those navigating financial recovery, the IRS has announced special tax relief provisions aimed at easing this burden. On October 1, 2024, the IRS revealed tax relief for disaster areas designated by FEMA, including entire states like Alabama, Georgia, North Carolina, and South Carolina, and parts of Florida, Tennessee, and Virginia. Affected individuals and businesses are encouraged to check the complete list of eligible states and counties on the IRS website.

Individual Tax Relief Overview

Individuals in impacted areas now have until May 1, 2025, to file their 2024 federal tax returns or submit any remaining 2023 returns under extension. While the filing deadline for 2023 returns has been extended, taxes owed for 2023 were still due by April 15, 2024, and are not eligible for further relief. The IRS has also extended the due date for estimated tax payments originally due on January 15 and April 15, 2025, to May 1, 2025.

Business Tax Relief Overview

Businesses benefit from the extension of corporate tax returns due in March or April 2025, now moved to May 1, 2025, along with 2023 returns filed under an extension. Quarterly estimated tax payments typically due on January 15 or April 15 are also extended to May 1, 2025. Furthermore, quarterly payroll and excise tax returns are now due May 1, 2025, instead of their original dates—October 31, 2024, January 31, 2025, and April 30, 2025. The IRS offers penalty relief for late payroll and excise tax deposits, but such relief varies by state, making it crucial for business owners to review specific guidelines.

Claiming Uninsured Disaster Losses

Businesses and individuals who incurred uninsured or unreimbursed disaster-related losses can claim these as deductions on their taxes. They may opt to report these losses on their 2024 tax return or the 2023 return, depending on which is more beneficial. It's advisable to consult a trusted accounting firm to determine which year's deduction would be most advantageous.