How the IRS adjusts filing deadlines for those impacted by natural disasters 

When natural disasters strike, they can have a devastating effect on individuals and businesses. The immediate priorities for those affected are often safety, securing shelter, and beginning the recovery process. In recognition of the challenges faced during these times, the Internal Revenue Service offers important tax relief to impacted taxpayers, including the adjustment of filing deadlines. 

IRS disaster relief: How it works

The IRS has established procedures for offering tax relief to taxpayers in federally declared disaster areas. When the president issues a disaster declaration, the IRS automatically provides relief, which includes extending tax filing deadlines for those in the impacted areas. This relief is crucial for individuals and businesses grappling with the aftermath of a disaster, as it gives them more time to focus on immediate needs rather than worrying about tax compliance.

Key aspects of IRS relief 

Filing Deadline Extensions: One of the most significant forms of relief provided by the IRS is the extension of tax filing deadlines. The IRS automatically postpones various tax filing and payment deadlines, including those for individual income tax returns, corporate income tax returns, and estimated tax payments. This helps taxpayers avoid late filing penalties, interest, and fines while they focus on recovery efforts.

Eligibility for Relief: Taxpayers residing or owning businesses in areas covered by federal disaster declarations are generally eligible for tax relief. The IRS uses the address of record to determine eligibility and automatically applies extensions for taxpayers in these regions. In some cases, taxpayers located outside the affected areas but whose records are kept in the disaster zone may also qualify for relief.

Extended Deadlines for Payments: The IRS relief extends beyond just the filing of tax returns. In many cases, the deadlines for making tax payments are also postponed. This is particularly important for businesses and individuals who owe quarterly estimated tax payments or other taxes that are normally due during or immediately after a disaster event.

Claiming Disaster Losses on Tax Returns: Affected taxpayers may be able to claim disaster-related losses on their tax returns, either in the year the disaster occurred or the previous tax year. This flexibility can provide financial relief more quickly. For example, if a disaster occurred in 2024, taxpayers could amend their 2023 return to reflect the losses and potentially receive a quicker refund.

Special relief for Florida taxpayers

One of the most recent and notable instances of IRS disaster relief involves taxpayers in the state of Florida. As a result of recent natural disasters, including hurricanes and severe storms (think Hurricanes Helene and Milton), all of Florida has been declared a federally recognized disaster area. In response, the IRS has extended important filing and payment deadlines for taxpayers in the state.

For Florida residents and businesses affected by these disasters, the IRS has extended the filing and payment deadlines to May 1, 2025. This includes a variety of tax obligations that would normally be due during the months of March and April 2025. Here’s a detailed breakdown of what this means:

2024 Individual and Business Tax Returns: Taxpayers in Florida will now have until May 1, 2025, to file their 2024 federal individual and business income tax returns. These returns are typically due in mid-April (April 15 or the next business day). This extension gives taxpayers more time to file and make any necessary tax payments without incurring late fees or interest.

2023 Individual and Corporate Returns with Valid Extensions: For taxpayers who requested an extension for their 2023 individual or corporate income tax returns, the new May 1, 2025, deadline also applies. This provides additional time for those who may have been delayed in their filing due to the disaster recovery process. Normally, these extended returns would be due in October 2024, but the IRS relief measures provide nearly seven more months to file.

Quarterly Estimated Tax Payments: Many taxpayers, including self-employed individuals and businesses, are required to make quarterly estimated tax payments throughout the year. These payments are usually due in mid-January, April, June, and September. For Florida taxpayers, any quarterly estimated tax payments that would have been due in March or April 2025 have also been postponed to May 1, 2025. This relief can help individuals and businesses preserve cash flow while they recover from the disaster.

How to confirm eligibility/access relief

The IRS relief is generally automatic for those living in disaster areas, meaning that eligible taxpayers do not need to apply for an extension or request relief. However, taxpayers are encouraged to confirm their eligibility by checking the IRS website, which maintains updated lists of disaster areas and corresponding relief measures. Additionally, taxpayers who reside outside the affected area but believe they qualify for relief because of business operations or tax records located in the disaster zone should contact the IRS to ensure they receive the appropriate extensions.

For those needing further assistance, the IRS has established a dedicated disaster assistance hotline that can provide guidance on available relief options, including information on filing extensions, payment deferrals, and how to claim disaster-related losses on a tax return.

Stay informed about the IRS changes

Natural disasters create enormous challenges, and the IRS understands that filing taxes is often the last thing on the minds of those impacted. By extending filing and payment deadlines, the IRS provides taxpayers with the flexibility they need to focus on recovery without the added burden of tax compliance deadlines. In the case of Florida, affected taxpayers now have until May 1, 2025, to file various individual and business returns and make tax payments. 

This relief is an essential part of the federal government’s disaster response, offering valuable breathing room for those recovering from storms, hurricanes, and other natural events. 

By staying informed about these IRS relief measures, taxpayers can better navigate their financial responsibilities even in the face of disaster.

Aaron Taylor is with Bush Wealth Management. This information should not be construed by any client or prospective client as the rendering of personalized investment advice.  For more information, please visit BushWealth.com for full disclosures.