The Internal Revenue Service (IRS) has announced tax relief for individuals and businesses in South Carolina, North Carolina, Florida, and Georgia affected by Hurricane Debby. Affected taxpayers now have until February 3, 2025, to file various federal individual and business tax returns and make tax payments.
The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). This currently includes all 46 counties in South Carolina; 61 counties in Florida; 55 counties in Georgia; and 66 counties in North Carolina. Individuals and households residing or having a business in these localities qualify for tax relief. The same relief will be available to any other counties added later to the disaster area.
The tax relief postpones various tax filing and payment deadlines that occurred beginning on August 1, 2024, in Florida; August 4, 2024, in Georgia and South Carolina; and August 5, 2024, in North Carolina. The relief period continues through February 3, 2025. As a result, affected individuals and businesses will have until this date to file returns and pay any taxes originally due during this period.
For example:
- Any individual or business with a valid extension to file their 2023 federal return.
- Quarterly estimated income tax payments normally due on September 16, 2024, and January 15, 2025.
- Quarterly payroll and excise tax returns normally due on October 31, 2024, and January 31, 2025.
In addition:
- In Florida: Penalties for failing to make payroll and excise tax deposits due between August 1-16 will be abated if made by August 16.
- In South Carolina and Georgia: Penalties for failing to make payroll and excise tax deposits due between August 4-19 will be abated if made by August 19.
- In North Carolina: Penalties for failing to make payroll and excise tax deposits due between August 5-20 will be abated if made by August 20.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Taxpayers do not need to contact the agency for this relief. However, those who moved into the disaster area after filing their return should call the number on any late filing or late payment penalty notice received during the postponement period.
Additionally:
- The IRS will work with taxpayers living outside the disaster area but whose records necessary for meeting a deadline are located within it.
- Taxpayers qualifying for relief who live outside the disaster area can contact the IRS at (866)562-5227.
Individuals or businesses suffering uninsured or unreimbursed disaster-related losses can claim them on either their return for the year of loss occurrence (the upcoming year's return) or the prior year's return. Qualified disaster relief payments are generally excluded from gross income.
Further details about additional forms of assistance are available on relevant IRS publications such as Publication 547 and Publication 525. Additional information regarding retirement plans or IRAs may also apply under specific rules provided by each plan or IRA.
Eligible individuals can seek free help preparing their tax returns at Volunteer Income Tax Assistance (VITA) sites or through other programs like MilTax offered by the Department of Defense.
For more information on disaster recovery efforts visit disasterassistance.gov.