Key Takeaways:
- The IRS and several state tax authorities are offering automatic tax relief, extending filing and payment deadlines for taxpayers affected by 2024’s natural disasters, with eligibility based on zip codes in affected counties.
- Specific states impacted include Illinois, Louisiana, and multiple Southern states, with deadlines extended for quarterly estimated tax payments, payroll, and excise tax returns, as well as filing extensions for federal returns, but not for payments already due.
- Taxpayers whose tax preparers are in disaster areas may also qualify for relief, and state tax extensions may differ from federal guidelines, so further consultation may be needed. KRD’s offices are located in Cook County, IL. See below for specific Illinois relief provisions that may be available.
- Tax benefits in the form of casualty losses or disaster payments may be available to taxpayers located in FEMA designated disaster areas.
Taxpayers in Certain Illinois Counties and throughout the South are Affected
The year 2024 has brought several serious natural disasters to Americans in nearly all regions. As a result, the IRS and many state tax authorities are offering relief for filing deadlines and certain payments for taxpayers who are impacted by disasters.
This relief is provided automatically based on taxpayer zip codes for taxpayers in affected counties, and generally provides relief from late filing penalties for business tax returns that were due on September 15, individual tax returns due on October 15, and quarterly estimated tax payments for the third and fourth quarters of 2024.
Below are details of the tax filing and payment relief for taxpayers in the following locations:
Illinois
TaxpayersinCook, Fulton, Henry, St. Clair, Washington, Will and Winnebago, which sustained significant damage from severe storms, tornadoes and flooding on July 13, 2024, are included in this relief.
The new filing deadline of Feb. 3, 2025 will now apply to:
- Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return run out on September 15 or October 15, 2024. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the storms occurred.
- Quarterly estimated income tax payments normally due on Sept. 16, 2024, and Jan. 15, 2025.
- Quarterly payroll and excise tax returns normally due on July 31, Oct. 31, 2024, and Jan. 31, 2025.
Louisiana
Louisiana sustained significant damage from Hurricane Francine on September 11, 2024.
The new filing deadline of Feb. 3, 2025, will now apply to:
- Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return run out on September 15 or October 15, 2024. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the storms occurred.
- Quarterly estimated income tax payments normally due on Sept. 16, 2024, and Jan. 15, 2025.
- Quarterly payroll and excise tax returns normally due on July 31, Oct. 31, 2024, and Jan. 31, 2025.
In addition, penalties for failing to make payroll and excise tax deposits due on or after July 13, 2024, and before July 29, 2024, will be abated, as long as the deposits were made by July 29, 2024.
Multiple Southern States
Taxpayers in Alabama, Georgia, Florida, North Carolina, South Carolina, and parts of Tennessee and Virginia, which were hit by Hurricanes Helene and/or Milton in October 2024, are included in a series of tax filing relief orders.
In these states, a new filing deadline of May 1, 2025, 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 run out on October 15, 2024. 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.
Important Notes
If a taxpayer is not in a disaster area, but the taxpayer’s tax preparer is in an affected county, the taxpayer can also obtain the same relief. The tax preparer must notify the IRS that the client is qualified for relief by providing a list of clients who will be relying on the tax preparer’s qualification.
Qualified disaster payments are excluded from gross income. These include payments received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of your home, or for the replacement of its contents.
Disaster losses may be deductible as casualty losses if your property was affected and not covered by insurance.
Please note that this federal extension may not be followed by states.
If you would like further information about your eligibility for disaster-related tax filing deadline relief, please contact your KRD advisor.
