IRS Announces Tax Relief for Hurricane Helene Victims

On October 1, 2024, the IRS announced disaster tax relief for taxpayers affected by Hurricane Helene. This relief covers the entire states of Alabama, Georgia, North Carolina, and South Carolina, and parts of Florida, Tennessee, and Virgina. Affected taxpayers will now have until May 1, 2025, to file various federal tax returns and make tax payments.  

Filing and Payment Relief 

The May 1, 2025, deadline applies to: 

• Any affected taxpayer that has a 2024 return normally due during March or April 2025,  

• Any affected taxpayer, including tax-exempt organizations, that has a valid extension of time to file their 2023 federal return (this relief applies to filing only, as payments were due last spring before the hurricane occurred),  

• 2024 quarterly estimated tax returns normally due on January 1, 2025, 

• 2025 quarterly estimated tax returns normally due on April 15, 2025, and 

• Quarterly payroll and excise tax returns normally due on October 31, 2024, January 31, 2025, and April 30, 2025.  

The IRS is also providing penalty relief for businesses that make payroll and excise tax deposits, with relief periods varying by state.  

The relief applies for filing and payment deadlines occurring: 

• On or after September 22, 2024, for Alabama, 

• On or after September 23, 2024, for Florida, 

• On or after September 24, 2024, for Georgia,  

• On or after September 25, 2024, for North Carolina, South Carolina, and Virgina, and 

• On or after September 26, 2024, for Tennessee.  

Affected taxpayers who reside in covered areas that previously received relief following Tropical Storm Debby will have their deadlines further extended to May 1, 2025.  

The relief applies to federal tax returns and payments only. States may have their own tax relief options.  

Covered Areas 

The relief is offered to any area designated a disaster by the Federal Emergency Management Agency (FEMA). In addition to the entirety of Alabama, Georgia, North Carolina and South Carolina, the relief applies to 41 counties in Florida, eight counties in Tennessee, and six counties and one city in Virginia. We encourage our clients to check the list of eligible localities to verify their area is included in the relief. 

The relief is provided automatically for any taxpayer with an IRS address of located in the disaster area. However, if a taxpayer moved to an effected area and their IRS address of record is not in the disaster area, a notice from the IRS could be received for late filing or payment during the postponement period. The taxpayer should the number on the notice to have the penalty abated if this occurs. 

Additional Tax Relief Information 

Additional relief may be available to affected taxpayers. For instance, those who suffer uninsured or unreimbursed disaster-related losses may be able to deduct these losses. Taxpayers can choose to deduct them on either the return for the year in which the loss occurred (the 2024 return normally filed in 2025), or the return for the prior year (the 2023 return filed earlier in 2024). 

Additionally, affected taxpayers who receive qualified disaster relief payments from a government agency for reasonable and necessary personal, family, living, or funeral expenses or for the repair or rehabilitation of their home or its contents may exclude those amounts from their gross income.  

Affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA) may be eligible to take a special disaster distribution. Disaster distributions are typically not subject to the additional 10% early distribution tax, and the inclusion of the distribution amount in the taxpayer’s gross income is spread out over three years. Taxpayers may avoid inclusion in gross income by recontributing the distribution amounts. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow. 

FBAR Relief

The Financial Crime Enforcement Network (FinCEN) also announced on October 7, 2024, that taxpayers impacted by Helene would have until May 1, 2025, to file Reports of Foreign Bank and Financial Accounts (FBAR) for the 2023 calendar year. This relief is offered to any area designated by both FEMA and the IRS as qualifying for the agencies’ respective relief. FinCEN advised that it will work with those filers whose records are located in a covered area, even if they live outside that area, to help them meet the October 15, 2024, deadline. These filers are advised to contact FinCEN.  

Beneficial Ownership Information Report Relief

On October 29, 2024, FinCEN also announced filing relief for reporting companies impacted by Milton. Reporting companies whose principal place of business is in an area designated by both FEMA and the IRS as qualifying for these agencies’ respective relief will be given an additional six months to file initial, corrected, and updated reports. To qualify, the reporting company’s due date must fall between October 4, 2024, and January 2, 2025. For instance, a reporting company with a due date of October 30, 2024, will now have until April 30, 2025, to file.