In 2025, several significant natural disasters have impacted various regions across the United States. In response, the IRS has announced tax relief measures to support affected individuals and businesses. This article outlines the disasters and the corresponding tax relief provisions.
California Wildfires and Straight-Line Winds
Incident Period: January 7, 2025 – January 31, 2025
Affected Area: Los Angeles County, California
IRS Relief Measures:
- Extended Tax Relief for Southern California Wildfire Victims: Affected taxpayers have until October 15, 2025, to file federal individual and business tax returns and make tax payments. This extension applies to deadlines falling between January 7, 2025, and October 15, 2025 for those impacted by.
- Penalties Abatement: Penalties for payroll and excise tax deposits due between January 7 and January 22, 2025, are abated if the deposits were made by January 22, 2025.
Kentucky Severe Storms, Flooding, and Landslides
Incident Period: February 14, 2025, and continuing
Affected Area: Entire state of Kentucky
IRS Relief Measures:
- Extended Deadlines: Affected taxpayers have until November 3, 2025, to file federal individual and business tax returns and make tax payments. This extension applies to deadlines falling between February 14, 2025, and November 3, 2025.
- Penalties Abatement: Penalties for payroll and excise tax deposits due between February 14 and March 1, 2025, are abated if the deposits were made by March 1, 2025.
Hurricane Helene
Incident Period: September 1, 2024, and continuing
Affected Areas: Parts of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, and Tennessee
IRS Relief Measures:
- Extended Deadlines: Affected taxpayers have until May 1, 2025, to file federal individual and business tax returns and make tax payments. This extension applies to deadlines falling between September 1, 2024, and May 1, 2025.
- Penalties Abatement: Penalties for payroll and excise tax deposits due between September 1 and September 15, 2024, are abated if the deposits were made by September 15, 2024.
General Guidance for Affected Taxpayers
Automatic Application of Relief: The IRS automatically applies filing and payment relief to taxpayers with an IRS address of record in the disaster area. Those who moved to the area after filing their last return or whose records are located in the affected area should contact the IRS at 866-562-5227.
Claiming Disaster-Related Losses: Uninsured or unreimbursed disaster-related losses can be claimed on either the tax return for the year the loss occurred or the prior year. To claim these losses, file Form 4684, Casualties and Thefts, and attach it to your individual tax return (Form 1040). If claiming the loss for a prior year, file an amended return using Form 1040-X and include Form 4684. Remember to write the appropriate FEMA disaster declaration number on the forms (e.g., 4856-DR for the California wildfires).
Staying informed about disaster relief options is crucial for effective recovery. Tax professionals and preparers should monitor updates to assist clients in navigating these relief measures.
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Resources:
- IRS Disaster Relief Page: For a comprehensive list of disaster declarations and related tax relief, visit the IRS Tax Relief in Disaster Situations page.
- FEMA Disaster Declarations: For information on federal disaster declarations and assistance, refer to the FEMA Disaster Declarations page.en.wikipedia.org+2fema.gov+2fema.gov+2
Note: The information provided is based on IRS announcements as of March 10, 2025. Affected taxpayers should consult the IRS or a tax professional for the most current guidance.