In the wake of Hurricane Helene, which caused widespread devastation in North Carolina and surrounding states, the IRS has announced a comprehensive tax relief plan for affected individuals and businesses.
This relief includes an extended deadline for various federal tax filings and payments until May 1, 2025. The relief is part of a coordinated federal response, following a disaster declaration by FEMA.
What the Tax Relief Entails
The IRS has postponed tax filing and payment deadlines for North Carolina taxpayers impacted by Hurricane Helene. The new deadline of May 1, 2025, applies to various tax forms and payments originally due from September 25, 2024, to May 1, 2025. This includes:
- 2023 Individual Tax Returns: Taxpayers with an extension to file until October 15, 2024, now have until May 1, 2025, to complete their returns. However, any tax payments related to these returns, which were due on April 15, 2024, do not qualify for this relief.
- 2024 Business and Corporate Tax Returns: Businesses with valid extensions that were set to expire in October 2024 now have until May 1, 2025, to file their returns.
- Estimated Tax Payments: Quarterly estimated payments due in January and April 2025 for the tax year 2024 are now extended to May 1, 2025.
- Payroll and Excise Taxes: The relief also applies to quarterly payroll and excise tax returns due in October 2024, January 2025, and April 2025.
Tax Relief Eligibility
Residents and businesses throughout North Carolina are eligible for this relief. The IRS will automatically identify and provide this extension for taxpayers with addresses in the disaster area.
Taxpayers living outside of North Carolina, but whose records are located in the disaster zone, are also eligible. They should contact the IRS disaster hotline to request this relief. Additionally, relief workers assisting with recovery efforts in affected areas are included.
Additional Tax Benefits
North Carolina taxpayers may also claim disaster-related losses on either their 2023 or 2024 tax returns. This provides flexibility for individuals and businesses that incurred uninsured or unreimbursed losses due to Hurricane Helene.
For those choosing to claim losses on their 2023 returns, it could result in a faster refund to help with immediate recovery efforts.
Moreover, penalties related to payroll and excise tax deposits due between September 25, 2024, and October 10, 2024, will be waived if the deposits are made by October 10, 2024.
Important Deadlines and Forms Impacted
| Tax Deadline | Extended Deadline | Forms Impacted |
|---|---|---|
| Individual 2023 tax returns (with extensions) | May 1, 2025 | Form 1040 |
| Corporate tax returns (with extensions) | May 1, 2025 | Form 1120 |
| Quarterly estimated payments (Jan. 15, 2025; April 15, 2025) | May 1, 2025 | Form 1040-ES |
| Payroll and excise tax returns (Oct. 31, 2024; Jan. 31, 2025; April 30, 2025) | May 1, 2025 | Form 941, Form 720 |
How to Claim Tax Relief
The IRS will automatically apply the relief to eligible taxpayers in the affected regions. However, if you receive a late filing or payment notice that you believe falls within the extended period, you should contact the IRS.
For taxpayers whose records are outside the disaster area, or if you’re helping with disaster recovery efforts, the IRS offers further guidance through its hotline and website.
Conclusion
Hurricane Helene left a lasting impact on North Carolina, but the tax relief announced by the IRS provides some much-needed financial flexibility for affected individuals and businesses.
With deadlines extended until May 1, 2025, North Carolina residents can focus on recovery efforts without the immediate pressure of tax filings. Be sure to check the IRS website for updates and take full advantage of the relief options available.
FAQs
1. Who qualifies for the tax relief?
Residents and businesses across the entire state of North Carolina, as well as relief workers and those whose records are located in the disaster zone, qualify for the extension.
2. What if I live outside North Carolina but have business or records in the affected area?
You are eligible for the extension. Contact the IRS to notify them and request relief.
3. Are tax payments also extended under this relief?
Yes, payments due between September 25, 2024, and May 1, 2025, are extended. However, payments originally due on or before April 15, 2024, are not eligible.
4. Can I claim my disaster losses on my 2023 return?
Yes, you may claim uninsured or unreimbursed losses on either your 2023 or 2024 tax return.
5. What should I do if I receive a late penalty notice for a filing within the extension period?
Contact the IRS using the number provided on the notice, and they will abate the penalty.
References
- [IRS.gov]
- [NCACPA]
- [Spectrum Local News]
