IRS Provides Tax Extension Relief for Victims of Hurricane Milton

In response to the devastation caused by Hurricane Milton, the Internal Revenue Service (IRS) has announced significant relief measures for affected individuals and businesses across Florida in 51 counties, with affected taxpayers in all of Florida now having until May 1, 2025, to prepare and file tax returns and make payments that otherwise would have been due during March and April 2025, as well as 2023 individual and corporate returns with valid extensions and quarterly estimated tax payments. The IRS has stated that it is offering relief to federally declared disaster areas by the Federal Emergency Management Agency (FEMA).

Tax Deadline Changes for Select Florida Hurricane Victims

Starting Oct. 5, 2024, individuals and businesses in Broward, Indian River, Martin, Miami-Dade, Palm Beach and St. Lucie counties, which were previously ineligible for relief under Hurricanes Debby and Helene, will receive disaster tax relief until May 1, 2025.

Additionally, relief will be extended to individuals and businesses in 20 counties that had previously received assistance under Hurricane Debby but not Hurricane Helene. This relief will be available from August 1, 2024, through May 1, 2025, for counties including Baker, Brevard, Clay, DeSoto, Duval, Flagler, Glades, Hardee, Hendry, Highlands, Lake, Nassau, Okeechobee, Orange, Osceola, Polk, Putnam, Seminole, St. Johns and Volusia.

Key Relief Measures

Tax relief related to Hurricane Milton postpones various filing and payment deadlines from Oct. 5, 2024, to May 1, 2025. Key deadlines now include:

• Any 2024 return due in March or April 2025.
• Any individual, C-corporation or tax-exempt organization with a valid extension for their 2023 return (note: payments for these returns, due prior to the hurricane, are not eligible for extension).
• 2024 quarterly estimated tax payments due Jan. 15, 2025, and April 15, 2025.
• Payroll and excise tax returns due Oct. 31, 2024, Jan. 31, 2025, and April 30, 2025.

Additionally, for affected localities, penalties for failing to make payroll and excise tax deposits between Oct. 5 and Oct. 21, 2024, will be waived if deposits are made by Oct. 21, 2024. Eligible counties include 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, Putnam, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Union and Volusia.

Taxpayers with IRS addresses in the disaster area will automatically receive filing and penalty relief and do not need to contact the IRS. If a taxpayer’s records are in the affected area, but their IRS address is outside it, they should contact to the IRS for assistance.

Additional Tax Relief Options

Taxpayers who experience uninsured or unreimbursed losses can claim these on either their 2024 return or the prior year’s return (2023), with an extension of up to six months to make this election. For individual taxpayers, this means they have until Oct. 15, 2025. Remember to include the FEMA declaration number 3622–EM when filing.

Qualified disaster relief payments are generally excluded from gross income, allowing taxpayers to exclude amounts received for necessary personal, family, living or funeral expenses, as well as for repairs or replacements of their homes and contents.

Taxpayers with retirement plans may also be eligible for special distributions or hardship withdrawals without incurring the typical early withdrawal penalty.

Windham Brannon’s Tax Practice is prepared to help you and your business stay on track for tax compliance even in the face of natural disasters. For questions or more information on tax relief or extensions that apply to your tax situation, contact your Windham Brannon advisor today, or reach out to Brent Wilkinson.