IRS extends tax filing, payment deadlines in disaster-hit areas

As residents of Tennessee and other states work to rebuild their lives and businesses in the wake of the September 2024 devastation caused by flooding from Hurricane Helene, the IRS is delaying for a brief time tax filing and payments for people in the disaster-designated areas.

The deadline extension, based on a federal disaster declaration, includes Tennesseans in Carter, Claiborne, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Sevier, Sullivan, Unicoi and Washington counties.

The IRS announced on Oct. 11, 2024, that

“Victims of Hurricane Helene now have until May 1, 2025, to file various individual and business tax returns and make tax payments.”

This extension relates to tax filings originally due by Oct. 15, 2024, for the 2023 calendar year end. Taxpayers in the affected areas don’t have to request the extra time; it’s granted automatically.

The IRS says taxpayers “who received extensions to file their 2023 returns have until May 1, 2025, to file. Tax-year 2023 tax payments are not eligible for this extension. In addition, May 1 is also the deadline for filing 2024 returns and paying any tax due.”

The schedule for filing returns and tax payments includes businesses and individuals whose organizations are based in the disaster-designated area. And there’s more:

• The relief extends as well to individuals and organizations that may be principally located outside the disaster area, but who can’t complete the tax return filings or make their tax payments without records from entities within the disaster zone.

• Additionally, people working in relief roles who are there for a government or government-recognized philanthropic organization also have the option to wait until May 1 to make their tax filings and payments, as does anyone injured or filing for those killed in the disaster (death does not necessarily end the requirement to file returns or pay taxes).

• Estimated tax payments also fall under the disaster response. Individuals and organizations that had taxes or a filing due between Sept. 26, 2024, and May 1, 2025, now have until the latter date to meet their obligation. The deadline is May 1 as well if time expired on Oct. 15, 2024, for a previously approved extension, including those for corporations that operate on a calendar year.

• Quarterly estimated tax payments due on April 15 are now not due until May 1, as are quarterly payroll and excise taxes for returns due Jan. 31 and April 30.

In its news release on the deadlines, the IRS encourages affected taxpayers who live or whose businesses are outside the disaster area to call the IRS disaster hotline at 866-562-5227. This suggests that it would be wise to call the number if you’re in the affected area and are unsure about any aspect of the program for disaster-designated zones.

As you can imagine, this process has many additional details and components specific to individual taxpayer situations, such as how to deal with disaster payments, retirement plan impacts and disaster losses. Reach out to a professional to discuss your situation, and for more information, take advantage the irs.gov/newsroom website.

This originally appeared in KnoxNews.