The 2024 hurricane season has brought unprecedented challenges to many parts of the United States, with Hurricanes Milton and Helene causing widespread devastation. In response, the Internal Revenue Service (IRS) has implemented a series of tax relief measures to assist affected taxpayers. This guide provides a detailed overview of these measures, their implications, and how to navigate the complex landscape of disaster-related tax relief.
Here’s what you need to know.
Extended Filing Deadlines
The IRS has established a tiered system of extended deadlines based on the severity and timing of different disaster events:
- November 1, 2024 Deadline
- Applies to parts of: Arkansas, Florida, Iowa, Kentucky, Mississippi, New Mexico, Oklahoma, Texas, and West Virginia
- Primarily for disasters occurring earlier in the year
- February 3, 2025 Deadline
- Applies to parts of: Connecticut, Florida, Illinois, Kentucky, Louisiana, Minnesota, Missouri, New York (Suffolk County Only), Pennsylvania, Puerto Rico, South Dakota, Texas, Vermont, Virgin Islands, and Washington
- Covers a wide range of disasters, including severe storms, flooding, and wildfires
- May 1, 2025 Deadline
- Specifically for areas affected by Hurricane Helene in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia
- Specific FLORIDA Counties that qualify for tax relief: Alachua, Bay, Bradford, Calhoun, Charlotte, Citrus, Collier, Columbia, Dixie, Escambia, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Hernando, Hillsborough, Holmes, Jackson, Jefferson, Lafayette, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Monroe, Okaloosa, Pasco, Pinellas, Santa Rosa, Sarasota, Sumter, Suwannee, Taylor, Union, Wakulla, Walton, and Washington
- September 30, 2025 Deadline
- Applies to taxpayers affected by terrorist attacks in Israel
- Military Personnel in Combat Zones
- 180 days after leaving the combat zone to file returns and pay any taxes due
It’s crucial to note that these deadlines may be subject to change as the IRS continues to assess the impact of ongoing and future disasters.
Critical Relief Measures
- Automatic Extensions: For filing and paying taxes in affected areas
- Casualty Loss Options: Deduct losses on either 2023 or 2022 returns
- Retirement Account Access: Potential penalty-free withdrawals for disaster expenses
Key Considerations
- Document all disaster-related losses and expenses thoroughly
- Consider the timing of insurance recoveries when claiming losses
- Be aware of state tax implications, which may differ from federal relief
We’re Here to Help You
Navigating disaster-related tax relief is complex. Grassi’s experts can:
- Determine your eligibility for various relief measures
- Optimize the timing and method of claiming losses
- Ensure compliance while maximizing available benefits
- Provide industry-specific guidance for disaster recovery
Act Now to Maximize Your Relief
The tax implications of disaster recovery are time sensitive. Contact Jeff Cohen, Partner and Tax Services Leader, at jcohen@grassiadvisors.com, or Matthew McCullough, Tax Controversy Principal, at mmccullough@grassiadvisors.com, for a personalized consultation to ensure you do not miss out on critical tax relief opportunities.
