In the wake of Hurricanes Helene and Milton, the Internal Revenue Service (IRS) and seven states have issued tax relief to affected taxpayers. Taxpayers may be eligible for natural disaster tax relief if their home or business is located in a federally declared disaster area.[1]
Tax relief ranges from extensions of filing dates to waivers of penalties and interest and may apply only to specific tax types or taxpayers. Affected taxpayers should be aware of state procedures to request hardship waivers from taxing authorities if they are not eligible for tax relief.
Federal
Businesses located in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee (specified counties), and Virginia (specified counties) may be eligible for tax relief that includes more time to file and pay, casualty loss tax deduction, and disaster loans or grants.
Certain tax returns with an original or extended due date occurring on or after the first day of the disaster[2] and before May 1, 2025, may qualify for an extended May 1, 2025, deadline. The May 1, 2025, extended deadline also applies to payments normally due during this period such as quarterly payroll and excise tax returns (due October 31, 2024; January 31, 2025; and April 30, 2025).
Eligible tax types include corporate income tax returns, partnership and S corporation returns, annual information returns of tax-exempt organizations, and employment and certain excise tax returns.
Federal tax relief automatically applies to taxpayers with an IRS address of record in the disaster area.
Other relief, such as abatement of excise tax deposit penalties and dyed diesel penalty relief in response to disruptions from Hurricane Helene, may also be available.
Alabama
Alabama businesses located in a federally declared disaster area that are unable to timely file as a result of Hurricane Helene may be eligible for state relief, such as tax filing relief and penalty waivers. Taxpayers outside federally declared disaster areas may be eligible for waiver of late filing or late payment penalties.
The Alabama Department of Revenue will determine relief eligibility on a case-by-case basis and has not indicated tax type restrictions. Other relief related to the Alabama Terminal Excise Tax, International Registration Plan, and International Fuel Tax Agreement requirements may be available.
Florida
Florida businesses in specified counties with returns, reports, and payments due for the September 2024 and October 2024 reporting periods, or due between September 23, 2024, and November 22, 2024, may be eligible for tax relief that includes more time to file and pay.
Taxpayers located in certain counties may be eligible for an extended corporate income/franchise tax due date of May 16, 2025. To be eligible, taxpayers must have original or extended due dates falling within a specified date range, which varies by county.
Businesses located in certain counties are eligible for a due date extension of sales and use tax and related taxes.[3] Florida has extended the September 2024 and October 2024 reporting periods for certain tax types to November 22, 2024, for eligible businesses. The electronic payment deadline is extended to November 21, 2024, and must be initiated no later than 5:00 p.m. Eastern Time.
Additionally, temporary fuel tax license and dyed diesel fuel penalty relief may be available.
Georgia
Georgia businesses located in designated areas may be eligible for tax relief, such as more time to file and pay. Eligible tax types include corporate income/franchise tax, as well as sales and use, excise, and other miscellaneous taxes.
Businesses with a principal place of business in a federally declared disaster area, or businesses outside a federally declared disaster area but whose records are necessary to meet a covered deadline, may be eligible for sales and excise tax relief. Georgia has extended the deadline for quarterly and monthly returns and payments due in October 2024 (such as September 2024 sales and use tax returns, due October 21, 2024). The new deadline is November 20, 2024.
Georgia businesses with certain tax filing deadlines may have until May 1, 2025, to file returns and pay any taxes originally due during that period. The extended May 1, 2025, deadline applies to the following: businesses in Georgia with a 2024 income tax return normally due March 2025 or April 2025; calendar-year corporations whose 2023 extensions run out on October 15, 2024; quarterly estimated income tax payments due January 15, 2025, and April 15, 2025; and quarterly payroll tax returns normally due October 31, 2024, and January 31, 2025, and April 30, 2025.
Additionally, motor fuel excise tax and dyed diesel fuel penalty relief may be available.
North Carolina
Taxpayers eligible for federal relief may be eligible for North Carolina relief, such as penalty and interest waivers. This includes businesses with a principal place of business in North Carolina and businesses whose records necessary to meet a state deadline are located in North Carolina. Businesses that are not eligible for federal relief may be eligible for a penalty waiver if unable to meet state filing or payment requirements as a result of Hurricane Helene. Tax relief is available for all tax types, including corporate income and franchise tax, partnership tax, excise tax, sales and use tax, and withholding tax (limited exceptions).
With certain exceptions, taxpayers with licenses, returns or payments due on September 25, 2024, through May 1, 2025, may have certain penalties removed if the taxpayer obtains the license, files the return, or pays the tax by May 1, 2025.
Penalties that may qualify for relief include failure to obtain a license, failure to file a return, failure to pay tax when due, and failure to file an informational return. Interest relief is based upon business location in designated areas. Specific rules and deadlines apply to interest waivers, which vary based upon tax type and location.
In addition, dyed diesel fuel tax relief may be available.
South Carolina
Businesses located in South Carolina, as determined by IRS address of record, may be eligible for income tax relief, such as more time to file and pay as well as interest and penalty waivers. This relief is available to all of South Carolina and will be automatically applied to eligible taxpayers. Other relief may be granted on a case-by-case basis.
Eligible taxpayers with filing income tax filing deadlines on or after September 25, 2024, and through May 1, 2025, may have until May 1, 2025, to file certain South Carolina income tax returns and pay taxes originally due during that period. The May 1, 2025, deadline may apply to 2023 income tax returns from businesses with a valid extension and 2024 income tax returns normally due during March or April 2025. Quarterly estimated tax payments normally due on January 15, 2025, and April 15, 2025, will be due May 1, 2025. Interest or penalties related to this relief will be waived.
The relief provided by the extended May 1, 2025, deadline applies only to state income taxes, not other types of state taxes.
Tennessee
Tennessee businesses located in a federally declared disaster area and eligible for IRS relief may be eligible for state franchise and excise tax relief, such as more time to file and pay and penalty and interest waivers. Franchise and excise tax relief will automatically be applied to eligible taxpayers. Extension requests for other taxes, such as sales and use tax and business tax may be approved on a case-by-case basis for taxpayers unable to timely file due to Hurricane Helene.
Eligible Tennessee businesses with certain franchise and excise tax filing and payment deadlines starting September 26, 2024, may have until May 1, 2025, to file returns and pay any taxes originally due during that period. This includes quarterly estimated payments. Penalties and interest will not apply to returns filed and payments made on or before the extended May 1, 2025, deadline.
Virginia
Virginia is offering automatic tax relief to individual and fiduciary taxpayers unable to meet their income tax filing and payment obligations in the form of waiver of interest, late filing penalties, and late payment penalties. Virginia is not offering automatic income tax relief to business taxpayers. However, taxpayers affected by Hurricane Helene may request a hardship waiver of penalty and interest on taxes administered by the Virginia Department of Taxation.
If you have questions about state or federal tax relief, or how to seek hardship relief, please contact one of the Ryan experts listed below.
TECHNICAL INFORMATION CONTACTS:
Mark Nachbar
Principal
Ryan
331.998.7260
mark.nachbar@ryan.com
Christopher Potter
Director
Ryan
781.359.3800
christopher.potter@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.
[1] Consult https://www.fema.gov/disaster/declarations.
[2] The first date of the disaster varies based upon state as follows: September 22, 2024, in Alabama; September 23 in Florida; September 24 in Georgia; September 25 in North Carolina, South Carolina, and Virginia; and September 26 in Tennessee.
[3] Tax types eligible for Florida tax relief include: sales and use tax (including discretionary sales surtax); reemployment tax; communications services tax; documentary stamp tax – unrecorded documents; governmental leasehold intangible personal property tax; gross receipts tax on utility services; insurance premium tax; lead-acid battery fees, new tire fees, and rental car surcharge (solid waste and surtax); motor fuels taxes; motor vehicle warranty fee; prepaid wireless fee; severance tax; and tourist development tax.