Tax Alert – Tax Filing and Payment Relief in the Aftermath of Hurricane Helene

Following the impacts of Hurricane Helene on the Southeastern United States, the Internal Revenue Service (IRS) has provided targeted tax relief for all affected individuals and businesses in the region. The relief, published October 1, 2024, in IR-2024-253, is automatically applicable to taxpayers who live or operate a business in any of the following areas:

• All of Alabama,
• All of Georgia,
• All of North Carolina,
• All of South Carolina,
• 41 counties in Florida,
• 8 counties in Tennessee, and
• 6 counties in Virginia.

Essentially, this relief supersedes or amplifies the Hurricane Debby relief for areas covered by both provisions, and taxpayers in these areas have until May 1, 2025, to file various federal individual and business tax returns and make payments. More specifically, the relief postpones deadlines for the federal tax filings and payments listed below. This action takes effect beginning on September 22-26, 2024 (depending on the taxpayer’s state). This means that affected individuals and businesses will have until May 1, 2025, to file returns and pay any taxes that were originally due during this postponement period.

The May 1, 2025, deadline applies to:

• Individuals or businesses with 2024 returns due in March or April 2025,
• Individuals, businesses, or tax-exempt organizations with 2023 returns on a valid extension (but please note that payments due with these returns are not eligible for the extended deadline because they were due last spring prior to the hurricane),
• 2024 quarterly estimated income tax payments normally due on January 15, 2025,
• 2025 estimated tax payments normally due on April 15, 2025, and
• Quarterly payroll and excise tax returns normally due on October 31, 2024, and January 31 and April 30, 2025.

While the filing extensions above may be directly useful to taxpayers whose operations were affected by Hurricane Helene, all taxpayers in an eligible area should closely review their ability to improve short-term cash flows by deferring federal estimated income tax payments normally due in the coming months.

Please note that the above information pertains only to federal tax filings and payments. The various affected states’ Departments of Revenue may partially or entirely conform to the federal tax relief; however, the specifics of state-by-state tax relief are unknown at this time. If you any questions about the federal tax relief or forthcoming state tax relief, please consult with your Elliott Davis tax adviser.

The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.

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