IRS announces tax relief for taxpayers impacted by storms in West Virginia and Kentucky
The Internal Revenue Service has announced comprehensive tax relief for individuals and businesses affected by the recent severe storms in West Virginia and Kentucky. The relief includes extensions of various tax deadlines through November 1, 2024.
Covered disaster area
The relief applies to numerous counties in West Virginia and Kentucky:
West Virginia
Boone, Braxton, Calhoun, Clay, Doddridge, Fayette, Gilmer, Jackson, Kanawha, Lewis, Lincoln, Logan, McDowell, Marion, Mingo, Monongalia, Preston, Putnam, Randolph, Roane, Taylor, Tucker, Upshur, Wayne, Webster, Wyoming.
Kentucky
Anderson, Bourbon, Boyle, Breckinridge, Bullitt, Butler, Carroll, Casey, Clark, Daviess, Edmonson, Estill, Fayette, Franklin, Garrard, Grayson, Green, Hardin, Harrison, Hart, Jessamine, LaRue, Lincoln, Madison, Marion, Meade, Metcalfe, Nelson, Nicholas, Ohio, Owen, Scott, Spencer, Washington, Woodford.
Affected taxpayers
Taxpayers in the affected disaster areas, including individuals and businesses, are eligible for this relief. This action ensures that those affected by the storms have additional time to complete their tax-related responsibilities without the pressure of impending deadlines.
Extended deadlines and eligible returns
The IRS has extended various tax deadlines for storm victims until November 1, 2024:
- Filing deadlines: Individual and business tax returns due by April 15, 2024, are now due by November 1, 2024.
- Quarterly estimated taxes: Payments normally due on April 15, June 17, and September 16, 2024, will be delayed.
- IRA and HSA contributions: The deadline for 2023 contributions to Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs) is extended.
- Quarterly payroll and excise tax returns: Returns normally due April 30, July 31, and October 31, 2024, are extended.
- Calendar-year corporate and fiduciary returns: Returns and payments due on or before April 15, 2024, are extended.
- Calendar year tax-exempt organization returns: Returns otherwise due by May 15, 2024, are extended.
- Penalty relief: Penalties for late payroll and excise tax deposits due between April 2 and April 17, 2024, are reduced if deposits are made by April 17, 2024.
How to claim relief?
Taxpayers do not have to apply for this relief. The IRS will automatically identify eligible taxpayers based on their address of record. However, if an affected taxpayer receives a late filing or late payment notice from the IRS, the taxpayer should contact the IRS to have the penalty reduced. In addition, if an affected taxpayer lives outside the disaster area but is involved in relief efforts, they may also be eligible for relief.
Additional tax relief provisions
Casualty loss claims
Taxpayers in a federally declared disaster area can claim uninsured or unreimbursed disaster-related losses on their 2024 or 2023 tax return. You have up to six months from the due date of your federal income tax return for the disaster year to make this election until October 15, 2025, for individuals. Be sure to include the FEMA declaration number (4783-DR for West Virginia and 4782-DR for Kentucky) on the return claiming the loss. See Publication 547 for more information.
Qualified disaster payments
Generally excluded from gross income, these payments cover reasonable and necessary personal, family, living, or funeral expenses and home repairs or contents replacement. See Publication 525 for more information.
Retirement plan relief
Affected taxpayers may qualify for special hardship distributions from retirement plans or IRAs that are exempt from the additional 10% early distribution tax and can be spread over three years. They may also be eligible for hardship withdrawals. Each plan or IRA has specific rules, so participants should consult their plan's guidelines.
The IRS may offer additional disaster relief in the future. This tax relief is part of a coordinated federal response supported by local damage assessments by FEMA. For more information on disaster relief, visit DisasterAssistance.gov.
Bottom line
The IRS's extension of tax deadlines and additional relief measures provide critical assistance to those affected by severe storms in West Virginia and Kentucky.
Affected taxpayers should evaluate their eligibility for these relief measures and seek guidance from tax professionals to maximize their benefits.