IRS Announces Tax Relief for Hurricane Helene Victims

The Internal Revenue Service (IRS) has extended tax relief to individuals and businesses affected by Hurricane Helene across Alabama, Georgia, North Carolina, South Carolina, and parts of Florida, Tennessee, and Virginia. Those in these disaster-stricken areas now have until May 1, 2025, to file their federal tax returns and make payments.

This extension applies to various tax deadlines, including 2024 individual and business returns due in March and April of 2025, as well as 2023 returns with valid extensions and quarterly estimated tax payments.

FEMA-Designated Relief Areas

The tax relief covers all of Alabama, Georgia, North Carolina, and South Carolina, and select counties in Florida, Tennessee, and Virginia. The IRS is offering this relief to any locality designated by FEMA in response to Hurricane Helene. Additional areas that may receive a FEMA disaster declaration will also be eligible for the same tax relief. For a full list of eligible locations, visit the “Tax Relief in Disaster Situations” page on IRS.gov.

Extended Filing and Payment Deadlines

The relief postpones tax deadlines starting from late September 2024 across the affected states. Taxpayers now have until May 1, 2025, to file their returns and make payments. Key deadlines include:

  • 2024 federal tax returns for individuals and businesses typically due in March or April 2025.
  • 2023 tax returns for those with valid extensions.
  • 2024 quarterly estimated income tax payments due on January 15 and 2025 estimated tax payments   April 15, 2025.
  • Quarterly Payroll and excise tax returns due October 31, 2024, January 31, 2025, and April 30, 2025.

Additionally, businesses affected by the disaster may qualify for penalty relief on payroll and excise tax deposits. More information on specific state deadlines can be found on the IRS’s “Around the Nation” page.

Automatic Taxpayer Relief

The IRS is automatically providing this tax relief to those with addresses of record in the disaster areas. Taxpayers do not need to take additional action to qualify. However, if you have moved to the affected area after filing your return or if your records are located in the disaster zone, you may need to contact the IRS if you receive a penalty notice.

Taxpayers outside the disaster area but whose records are located within it can also receive relief. These individuals should contact the IRS directly or refer to the “Bulk Requests from Practitioners for Disaster Relief” option available on IRS.gov.

Additional Tax Considerations

Those in the declared disaster areas who suffered uninsured or unreimbursed losses can claim those losses on either their 2024 return or their 2023 return. Taxpayers choosing to do so have until October 15, 2025, to make this election. Be sure to include the FEMA declaration number on any claim for disaster-related losses. For more details, see IRS Publication 547, Casualties, Disasters, and Thefts.

Qualified disaster relief payments are generally excluded from gross income. This includes payments for necessary personal, family, or funeral expenses, as well as home repairs. Details can be found in IRS Publication 525, Taxable and Nontaxable Income.

Additional relief may also be available for retirement plan or IRA participants. Special disaster-related withdrawals may be eligible for exceptions from the 10% early distribution tax, with the option to spread the income over three years. Hardship withdrawals may also be available, depending on the specific plan rules.

Ongoing Relief Efforts

The IRS will continue to coordinate with FEMA and other federal agencies to assess the situation and may provide further disaster relief as needed. For more information on recovery efforts, visit disasterassistance.gov.

Tax Preparation Assistance

Taxpayers affected by the hurricane can access free tax preparation services through the Volunteer Income Tax Assistance (VITA) program or Tax Counseling for the Elderly (TCE) sites. Those with an AGI of $79,000 or less can also use the IRS Free File program. Members of the military and eligible veterans can use MilTax, a free service offered by the Department of Defense, to file their federal and state tax returns.

For additional information, visit the IRS website or consult tax professionals to ensure you maximize your available relief options.

Contact your local BJM Group to know if you qualify for a tax relief. We have branches in the following areas: Augusta GA, Valdosta GA, Peachtree City GA, Duluth GA and Dunedin FL.