IRS Offers Tax Relief for Victims of Hurricane Helene

By Larry Pon, CPA, EA, USTCP, CFP, PFS, AEP

The IRS has announced tax relief for individuals and businesses affected by Hurricane Helene. Here are the key details to help you guide your clients through this recovery process.

Who Qualifies?

Tax relief applies to residents and businesses in Alabama, Georgia, North Carolina, South Carolina, and parts of Florida, Tennessee, and Virginia. You don’t need to have suffered damage—residing or operating a business in these areas is enough to qualify.

Extended Deadlines

The IRS has extended tax filing and payment deadlines to May 1, 2025. This includes:

• Individual & Business Tax Returns due in March or April 2025 (Forms 1040, 1120, 1065, etc.).
• 2024 Estimated Payments due in January and April 2025.
• Payroll & Excise Tax Returns normally due on October 31, 2024; January 31, 2025; and April 30, 2025.

Note: Tax payments for 2023 returns due in March or April 2024 are not included in this extension.

Uninsured Losses

Taxpayers who experienced uninsured losses can claim them on their 2023 or 2024 returns, with a filing deadline of October 15, 2025. Be sure to include the correct FEMA declaration number when filing IRS Form 4684.

Disaster Relief Payments

Qualified disaster relief payments (for living expenses, repairs, etc.) are generally tax-free. However, other payments like unemployment compensation remain taxable.

Retirement Plan Distributions

Special tax breaks apply to disaster-related distributions from retirement plans. Taxpayers under 59½ can avoid the 10% early withdrawal penalty, spread the income over three years, and repay the distribution within three years to avoid taxation.

FBAR Deadline Extension

The deadline for Foreign Bank Account Reporting (FBAR) has been extended to May 1, 2025, for those affected by Hurricane Helene.

How You Can Help

Charities like United Way, the American Red Cross, and World Central Kitchen are providing disaster relief. If you’re 70½ or older, consider making donations via Qualified Charitable Distributions (QCDs) from your IRA for tax benefits.

Stay Informed

As more hurricanes develop, keep up with IRS and FinCEN updates on disaster relief provisions. Contact the IRS at 866-562-5227 or visit their disaster relief page for more details.

Let’s continue to support those affected and stay prepared for any future storms.