Who is eligible for extended tax deadlines or other tax relief?
Most taxpayers impacted by natural disasters are eligible for tax relief, although the relief varies depending on the time of year and extent of the disaster. This includes individuals who live in an affected area. For businesses with a principal place of business in the affected area, the tax relief extends to any type of business owner (including sole proprietors, LLC members, partnership interests, and corporate entities), and to any shareholder in an S Corporation.
In general, the IRS extends tax filing due dates as well as due dates for paying taxes in disaster situations. If you were making payments on an IRS Installment Agreement and the IRS makes a disaster declaration for your area, the IRS offers a bit of a reprieve. Installment payments may be suspended until the end of the applicable postponement period.
When extensions are provided after a disaster declaration, the new tax deadlines generally extend to:
- Individual income tax returns and payments normally due April 15.
- Business tax returns and payments which would normally be due on March 15 and April 15.
- IRA contributions.
- Health Savings Account (HSA) contributions.
- Quarterly payroll and excise tax filings normally due January 31 and April 30.
- Estimated quarterly tax payments normally due January 15 and April 15.
The notices issued by the IRS explain the extent of the relief provided for each specific disaster.
What types of natural disasters qualify for tax relief?
The IRS issues notices after qualifying natural disasters occur. These notices provide new tax filing and payment deadlines and information about what states and counties are eligible for tax relief.
Current tax relief related to natural disasters includes the following:
Rhode Island storm, tornado and flood victims
Businesses in and residents of Providence County who were impacted by the storms in September 2023 have until June 17, 2024 to file and pay tax returns.
Connecticut storm and flood victims
Businesses in and residents of New London County, and the Tribal Nations of Mohegan and Mashantucket Pequot counties that were impacted by the storms and flooding in early January 2024 have until June 17, 2024 to file and pay tax returns.
Tennessee storm and tornado victims
Businesses in and residents of Cheatham, Davidson, Dickson, Gibson, Montgomery, Robertson, Stewart and Sumner and Weakley counties who were impacted by the tornados and severe storms in December 2023 have until June 17, 2024 to file and pay tax returns.
Maine storms and floods
Businesses in and residents of Androscoggin, Franklin, Hancock, Kennebec, Oxford, Penobscot, Piscataquis, Somerset, Waldo, and Washington counties affected by the severe storms and flooding in December 2023 have until June 17, 2024 to file and pay tax returns.
West Virginia storm, flood and landslide victims
Businesses in and residents of Boone, Calhoun, Clay, Harrison, and Kanawha counties who were affected by the severe storms that caused flooding, mudslides and landslides in August 2023 have until June 17, 2024 to file and pay tax returns.
Michigan storm, tornado and flood victims
Businesses in and residents of Eaton, Ingham, Ionia, Kent, Livingston, Macomb, Monroe, Oakland and Wayne counties who were affected by the storm, tornado and flooding in August 2023 have until June 17, 2024 to file and pay tax returns.
California flooding victims
Businesses in and residents of San Diego County who were impacted by the flooding in January 2024 have until June 17, 2024 to file and pay tax returns.
Washington wildfire victims
Businesses in and residents of Spokane County who were affected by the August 2023 wildfires have until June 17, 2024 to file and pay tax returns.
Alaska storm and landslide victims
Businesses in and residents of Wrangell Cooperative Association of Alaska Tribal Nation who were impacted by the severe storms, landslides and mudslides in November 2023 have until July 15, 2024 to file and pay tax returns.
Hawaii wildfire victims
Businesses in and residents of Maui and Hawaii counties who were impacted by the wildfires in August 2023 have until August 7, 2024 to file and pay tax returns. This extends the tax relief previously announced for those counties in Hawaii.
What other types of disasters have been eligible for tax relief in the past?
Several other natural disasters also qualified for tax relief in prior years. Now expired, relief was available for:
- Hurricane Nicole Victims.
- New York Storms in November and December 2022.
- Drought-stricken farmers and ranchers in 44 states.
- Severe storms and flooding in Alaska in September 2022.
- Puerto Rico victims of Hurricane Fiona.
- Mississippi water crisis victims.
- Victims of severe storms in several states.
The IRS also extended deadlines for COVID penalty relief for calendar year 2019 and 2020 tax returns for people and businesses located in certain FEMA-declared disaster areas. These extended deadlines are also now expired.
The IRS maintains an up-to-date state-by-state list of disaster-related tax relief on its website.
Do I need to prove that I was impacted by a natural disaster?
In most cases, taxpayers do not need to apply for natural disaster tax relief. In fact, it is unlikely that you would need to contact the IRS about a tax extension at all. The tax relief is automatic for any individuals or business taxpayers located in a federally declared disaster area.
What if I live outside a disaster area? Can I still take advantage of the extension?
You may be eligible for extended tax deadlines even if you live outside the affected area, or your primary place of business is not located inside a covered disaster area. There are several ways you may qualify:
- You use a tax professional whose business is located in a disaster area, and your taxpayer is unable to file returns or make payments on your behalf because of the disaster.
- Your tax records are located in a disaster area.
- You are an S Corporation shareholder or own an interest in a partnership located in a covered disaster area, and the business is unable to provide you with the Schedule K-1 or other documentation you need to prepare your tax filings.
If any of these exceptions apply, remember that you are not automatically eligible for tax filing deadline extensions or other applicable relief. Talk to your tax professional or contact the IRS Disaster Hotline to explain the circumstances and be prepared to provide the FEMA Disaster Declaration Number.
I live in a qualified disaster area, but received a notice that my filing was late. What are my options?
While the IRS automatically extends tax relief to disaster victims who live in covered areas, mistakes do happen. If you receive a notice that your tax filing or payment was late, and the notice tells you that you now owe a payment penalty as a result, contact the number on the letter you received. In most cases, it is a fairly simple matter to have the IRS apply the extended due date and waive your penalties.
If you need tax help, get matched with a Tax Pro via Rocket Tax™ to save time and money filling your tax returns. If you have more questions about taxes and tax extensions, reach out to a Rocket Lawyer network attorney for affordable legal advice.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.
