The Internal Revenue Service announced disaster tax relief for all individuals and businesses affected by Hurricane Helene, including the entire states of Alabama, Georgia, North Carolina and South Carolina and parts of Florida, Tennessee and Virginia. 

Taxpayers in these areas now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments. Among other things, this includes 2024 individual and business returns normally due during March and April 2025, 2023 individual and corporate returns with valid extensions and quarterly estimated tax payments.    

Which states qualify

Besides all of Alabama, Georgia, North Carolina and South Carolina, this currently includes 41 counties in Florida, eight counties in Tennessee and six counties and one city in Virginia.

Individuals and households that reside or have a business in any one of these localities qualify for tax relief. The same relief will be available to other states and localities that receive FEMA disaster declarations related to Hurricane Helene.

Filing and payment relief 

The tax relief postpones various tax filing and payment deadlines that occurred beginning on Sept. 22, 2024, in Alabama; Sept. 23 in Florida; Sept. 24 in Georgia; Sept. 25 in North Carolina, South Carolina and Virginia; and Sept. 26 in Tennessee. In all of these states, the relief period ends on May 1, 2025 (postponement period). As a result, affected individuals and businesses will have until May 1, 2025, to file returns and pay any taxes that were originally due during this period. 

This means, for example, that the May 1, 2025, deadline will now apply to: 

• Any individual or business that has a 2024 return normally due during March or April 2025.
• Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the hurricane occurred. 
• 2024 quarterly estimated income tax payments normally due on Jan. 15, 2025, and 2025 estimated tax payments normally due on April 15, 2025.
• Quarterly payroll and excise tax returns normally due on Oct. 31, 2024, and Jan. 31 and April 30, 2025. 

In addition, the IRS is also providing penalty relief to businesses that make payroll and excise tax deposits. Relief periods vary by state. Visit the Around the Nation page for details. 

Additional tax relief

• Disaster assistance and emergency relief are available for various tax-related actions during the postponement period, with deadlines extended to May 1, 2025, for areas impacted by Tropical Storm Debby.
• Taxpayers in disaster areas with an IRS address of record automatically receive filing and penalty relief without needing to contact the IRS.
• Taxpayers who move to the disaster area after filing and receive a late filing or payment penalty notice can contact the IRS to have the penalty abated.
• The IRS will assist taxpayers outside the disaster area who cannot meet deadlines due to necessary records being in the affected area. They can contact the IRS for relief at 866-562-5227.
• Tax preparers for clients outside the disaster area can use the IRS’s "Bulk Requests from Practitioners for Disaster Relief" option.
• Individuals and businesses in federally declared disaster areas can claim uninsured or unreimbursed disaster-related losses on either the 2024 or 2023 tax returns. They have until Oct. 15, 2025, to make the election.
• Qualified disaster relief payments from a government agency are generally excluded from gross income for personal, family, living, or funeral expenses, as well as home repairs or rehabilitation.
• Additional relief may apply to retirement plans or IRAs, including special disaster distributions exempt from the 10% early distribution tax or hardship withdrawals.
• The IRS may offer more disaster relief in the future as part of a coordinated federal response with FEMA. For more information, visit disasterassistance.gov.

Mark Sullivan Consulting is here to support taxpayers affected by recent natural disasters. We understand the complexities and stress that come with navigating tax relief during such challenging times, and our experienced team is ready to help you make sense of the available IRS relief options. Whether you're facing filing delays, penalty notices, or need assistance claiming disaster-related losses, we are committed to guiding you through every step of the process with compassion and expertise. Let us take the burden off your shoulders so you can focus on recovery.

Request a free consultation HERE with Mark W. Sullivan, EA 

About the author

Mark opened Mark Sullivan Consulting, PLLC in October 2022 after decade of tax consulting in FinTech. He is fairly new to the Phoenix area having moved here from St. Louis, Missouri in July 2020.

Mark has over 30 years of experience, including several years with the IRS as a Revenue Officer and over 16 years as director at a firm that specialized in civil and criminal tax accounting, IRS representation and forensic accounting. He has been admitted as an expert witness for civil and criminal tax cases in both State and Federal courts. Since relocating to Arizona and returning to practice, he has concentrated on tax compliance for individuals and businesses, advisory and representation services.

Mark graduated from the St. Louis University with a Bachelor of Arts in Sociology – International Relations degree. He has an unlimited licensed to practice as an Enrolled Agent nationwide and is a member of the National Association of Enrolled Agents.

A long-time Jeep enthusiast, Mark enjoys off-roading in his 2006 Jeep Wrangler LJ around the Southwest or wherever he goes on vacation.

Copyright 2024

Mark Sullivan Consulting, PLLC.

Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.

Additional references:

IR-2024-253 (October 1, 2024)