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IRS Provides Relief for Hurricane Milton Victims

Written by Kohari Gonzalez Oneyear & Brown | Oct 22, 2024 11:45:00 AM

 

Article Highlights:

  • Hurricane Milton Affected Florida Counties.
  • Who Qualifies for Relief.
  • Filing and Payment Relief
  • Relief Period Ending Date.
  • IRS Address of Record
  • Address Outside the Disaster Area
  • Additional Tax Relief
  • Qualified Disaster Relief Payments

Tax relief has been provided by the Internal Revenue Service for people and companies in areas of Florida hit by Hurricane Milton, which started on October 5, 2024. These taxpayers now have until May 1, 2025, to pay taxes and file a variety of federal individual and company tax filings.

Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA) , individuals and households that reside or have a business in Alachua, Baker, Bradford, Brevard, Broward, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Gilchrist, Glades, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lafayette, Lake, Lee, Levy, Madison, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putman, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union, and Volusia counties qualify for tax relief.

All impacted taxpayers in Florida now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments, including 2024 individual and business returns that are typically due in March and April 2025, 2023 individual and corporate returns with valid extensions, and quarterly estimated tax payments. This is in addition to the tax relief that was previously granted to taxpayers in counties affected by Hurricane Debby and Hurricane Helene.

For taxpayers who live or operate a company in the disaster region, the designation allows the IRS to extend specific tax filing and payment dates. For example, those deadlines that come on or after October 5, 2024, but before May 1, 2025, are given an extension to submit until May 1, 2025. Consequently, the deadline for filing returns and paying any taxes that were initially due during this time will be May 1, 2025, for impacted individuals and corporations.

The May 1, 2025, filing deadline applies to:

  • Any individual or business that has a 2024 return normally due during March or April 2025.
  • Any individual, C corporation or tax-exempt organization that has a valid extension to file their calendar-year 2023 federal return. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the hurricane occurred.
  • 2024 quarterly estimated tax payments normally due on Jan. 15, 2025, and 2025 estimated tax payments normally due on April 15, 2025.
  • Quarterly payroll and excise tax returns normally due on Oct. 31, 2024, Jan. 31, 2025, and April 30, 2025.

Additionally, if the tax payments were made before October 21, 2024, fines on payroll and excise tax deposits that were due on or after October 5, 2024, but before October 21, 2024, will be waived. Alachua, Baker, Bradford, Brevard, Broward, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Gilchrist, Glades, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lafayette, Lake, Lee, Levy, Madison, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putman, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union, and Volusia counties are among the localities that qualify for this relief.

Deposit penalty relief and other relief was previously provided to taxpayers affected by Debby and Helene. For details, see the Florida page on IRS.gov. The Disaster assistance and emergency relief for individuals and businesses page also has details, as well as information on other returns, payments and tax-related actions qualifying for relief during the postponement period

IRS Address of Record

If a taxpayer's IRS address of record is in a catastrophe region, the IRS automatically offers filing and penalty relief. To receive this aid, these taxpayers do not have to get in touch with the agency.

Address Outside the Disaster Area

An impacted taxpayer might not have an IRS address of record in the disaster region, for instance, if they relocated there after submitting their return. Under certain special conditions, the IRS may issue a notice of late filing or late payment penalty to the impacted taxpayer for the delay period. The taxpayer can get the penalty reduced by calling the number shown on the notification.

Additionally, if a taxpayer resides outside of the disaster region but has documents in the impacted area that are required to meet a deadline during the delay period, the IRS will cooperate with them.

Taxpayers who reside outside of the disaster region and are eligible for aid can call the IRS at 866-562-5227. This also covers employees supporting relief efforts who are connected to a reputable government agency or charitable organization. The Bulk Requests from Practitioners for Disaster Relief option, as detailed on IRS.gov, is available to disaster area tax preparers whose customers are situated outside the catastrophe region.

Additional Tax Relief

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2024 return normally filed next year), or the return for the prior year (the 2023 return filed this year). Taxpayers have extra time - up to six months after the due date of the taxpayer's federal income tax return for the disaster year (without regard to any extension of time to file) - to make the election. For individual taxpayers, this means Oct. 15, 2025. Be sure to write the FEMA declaration number on any return claiming a loss.

Qualified Disaster Relief Payments

Are often not included in gross revenue. This generally means that impacted taxpayers can deduct from their gross income amounts funds received from a government agency for reasonable and necessary living, funeral, family, personal, and home repair or rehabilitation costs, as well as for the replacement or repair of their home's contents. For more information, see to Publication 525, Taxable and Nontaxable Income.

Affected taxpayers who take part in an individual retirement arrangement (IRA) or retirement plan may be eligible for further assistance. For instance, a taxpayer could be able to take advantage of a special catastrophe distribution, which would allow them to spread their income over three years and would not be liable to the additional 10% early distribution tax. A hardship withdrawal may also be available to taxpayers. Participants in each plan or IRA are required to abide by particular guidelines and regulations. For further information, get in touch with this office.

Beneficial Ownership Information Reports

Financial Crimes Enforcement Network (FinCEN) announced that certain victims of Hurricane Milton will receive an additional six months to submit beneficial ownership information (BOI) reports (including updates or corrections to prior reports). For details see the FinCEN notice regarding Hurricane Milton.

The IRS may provide additional disaster relief in the future.

The tax relief is part of a coordinated federal response to the damage caused by this storm and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.

For information on how this disaster relief might impact you or your business directly and assistance with your tax preparation needs, please contact this office.