IRS Announces Tax Relief for Hurricane Helene Victims

On October 1, 2024, the Internal Revenue Service (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 who has a 2024 return normally due during March or April 2025
• Any affected taxpayer, including tax-exempt organizations, who 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
• 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 
• 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 area 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 automatically provided for any taxpayer with an IRS address located in the disaster area; however, if a taxpayer moved to an affected area and their IRS address of record is not in the disaster area, they may receive a notice from the IRS for late filing or payment during the postponement period. The taxpayer should call 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).  

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 also 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.  

If you have questions about navigating these IRS tax relief updates, contact us below. We’re committed to providing support through this challenging time. The EisnerAmper advisory team has also compiled resources and insights in our Hurricane Helene Disaster Recovery Resources guide to help your organization and community address any immediate needs.