Storm-Related Tax Filing Extensions

By Stanley Rose October 11, 2024

The IRS often provides automatic extensions of time to file tax returns for specific areas that are adversely impacted by natural disasters. We updated our readers regarding such extensions impacting the northeastern states in previous articles published in February and April.

More recently, the IRS allowed significant deferrals for filers located in areas impacted by Hurricanes Helene and Debby (and other storms); and just earlier today (October 11, 2024), relief was provided for areas devastated by Hurricane Milton.

Space does not allow a complete discussion of each of the impacted areas and the nuances applicable to each one, but we will address the basics of the federal relief; an overview of deferrals related to Debby, Helene, and Milton; and provide links to further information, most of which can be found on the IRS website in lists sorted by date or state.

First, the relief varies from storm to storm and even between locations within each storm, usually county by county. Generally, the relief allows deferral of the filing of federal tax returns and the related payment of tax (those due with the returns, as well as quarterly estimated payments, and sometimes payroll taxes), providing a new, later date for actions normally due during a prescribed time frame. The ending date usually is identical for each area impacted by a storm, but the starting date varies, as the same storm begins affecting locations on different days as it moves through a region. Each pronouncement must be scrutinized, though; as some draw distinctions between payroll and income tax, or reference filings that accomplish certain elections.

In some unfortunate cases, the same location is hit with successive storms. The original filing deadline may not be encompassed by the dates referenced by the second pronouncement, but if the first pronouncement provides extended filing dates, and those dates are bracketed by the time period for which relief is granted in the second pronouncement, the taxpayer generally receives that second extension, tacked onto the first one, providing a longer time frame to file.

Each pronouncement announcing relief explains who it applies to, and in most cases, the language references “affected taxpayers,” which generally means those living in, or conducting business in, a geographical area described in the document. Generally, the relief will be automatic for taxpayers with addresses located within those areas. However, the IRS upon request usually will accommodate taxpayers with addresses outside of those areas, if they can establish that they were impacted. Examples might include moves into or from an affected area, or records located within them.

Relief is not limited solely to storms. IRS relief resulting from droughts and middle east terrorist attacks is also available.

It is important to note that FinCEN Forms 114 (Foreign Bank Account Reports) are not under the purview of the IRS; they are handled by a different division of the Treasury Department. Deferrals of FBAR filings usually follow deferrals of income tax filings, but they are not one and the same.

Finally, relief provided by the IRS does not necessarily cover filings required by state or local jurisdictions. Usually, states are quick to act on the heels of IRS relief, but they generally are not automatically linked, and must be researched separately. (We do not attempt to cover state relief in this space.)

Following is some basic information on federal relief applicable to three recent hurricanes.

Hurricane Debby

Affected taxpayers in SC, most of FL & NC, and part of GA and PA with filings normally due between early August (dates vary based on the state) and 2/3/25 may file/make payments as late as 2/3/25. See more here.

Hurricane Helene

Affected taxpayers anywhere in AL, GA, NC, or SC and parts of FL, TN or VA, with filings normally due between late September (dates vary based on the state) and 5/1/25 may file forms and make payments as late as 5/1/25. See more here.

Hurricane Milton

Unlike the relatively straightforward nature of identifying the dates for which relief was granted for Debby and Helene, Milton’s relief is a bit more complex because (1) parts of the state were impacted by all three storms and (2) payroll tax deposits receive very specific relief that varies from income tax-related relief. The entirety of FL receives some sort of relief, but the filings and payments that qualify vary, depending on the date that those actions would have been due in the absence of any storms. For that reason, readers should carefully review IR-2024-264 to determine how it applies to them, but some highlights are as follows:

• For deadlines normally falling between 10/5/24 through 5/1/25, the taxpayers throughout the state may file and pay certain of those taxes as late as 5/1/25. This includes income tax returns, like 1040 forms that were properly extended under routine (non storm-related) rules in April, as well as similarly-positioned corporate and tax-exempt entity returns.
• Income tax deposits originally due during that period (such as Q4 2024 estimates for individuals normally due 1/15/25) may also be delayed until 5/1/25.
• The relief even applies to calendar year 2024 income tax returns, and related payments, due on 3/15/25 and 4/15/25. (For example, 2024 Forms 1040, or extensions, due six months from now may be filed a couple weeks late, in early May. Ditto for taxes that normally would accompany them.)

Interestingly, payroll tax deposits are treated very differently. Those due on or after 10/5/24 through 10/21/24 are deferred only through 10/21/24, and this relief applies to specific counties listed in the IRS notice (IR-2024-264).

As mentioned earlier, taxpayers affected by Milton who also were impacted by Debby and/or Helene will find language in IR-2024-264 that extends previous relief even further, as a result of Milton. 2023 FBARs receive similar relief, and those specs may be found on FinCEN’s website separately for Milton, Helene and Debby.

For more information, please contact Stanley Rose or your BNN tax advisor at 800.244.7444.