IRS announces tax relief for victims of natural disasters in Puerto Rico and South Dakota
The IRS has announced tax relief measures for individuals and businesses affected by recent severe weather events in Puerto Rico and South Dakota.
Both areas have experienced significant disruptions due to natural disasters, prompting the IRS to extend filing and payment deadlines to February 3, 2025.
Tax relief for Puerto Rico victims of Tropical Storm Ernesto
Following the declaration by the Federal Emergency Management Agency (FEMA), the IRS is offering tax relief to individuals and businesses in all 78 municipalities of Puerto Rico that were impacted by Tropical Storm Ernesto and the ensuing severe storms and flooding.
The relief applies to various federal tax filing and payment deadlines that occurred on or after August 13, 2024.
Key filing extensions:
- Individuals with extended 2023 returns: Taxpayers who had a valid extension to file their 2023 tax returns now have until February 3, 2025, to submit their returns. However, tax payments originally due on April 15, 2024, are not eligible for this extension.
- Businesses with extended 2023 returns: Calendar-year partnerships, S corporations, and other business entities with deadlines falling between August 13, 2024, and February 3, 2025, can also benefit from this extension.
Tax relief for South Dakota victims of severe storms and flooding
Similarly, the IRS is offering tax relief to individuals and businesses in 25 counties across South Dakota affected by severe storms, straight-line winds, and flooding that began on June 16, 2024.
Taxpayers in these areas now have until February 3, 2025, to file various federal tax returns and make tax payments.
Key filing extensions:
- Individuals with extended 2023 returns: Like in Puerto Rico, South Dakota taxpayers with extended 2023 tax returns now have until February 3, 2025, to file their returns, although payments originally due on April 15, 2024, are not covered by this extension.
- Businesses with extended 2023 returns: Calendar-year partnerships, S corporations, and corporations with deadlines within the affected period also receive the extended filing window.
Relief for payroll, excise tax, and other payments
In both Puerto Rico and South Dakota, the IRS has extended deadlines for quarterly estimated tax payments, payroll taxes, and excise tax returns:
- Quarterly estimated tax payments: Deadlines falling on June 17, September 16, 2024, and January 15, 2025, are now extended to February 3, 2025.
- Quarterly payroll and excise tax returns: Original deadlines on July 31, October 31, 2024, and January 31, 2025, are also extended.
- Penalties abatement: The IRS will abate penalties on payroll and excise tax deposits due during the specified relief periods, provided the deposits are made by the new deadline.
Additional provisions for casualty losses and other relief
Taxpayers in both Puerto Rico and South Dakota who suffered uninsured or unreimbursed disaster-related losses may claim those losses on their 2024 or 2023 tax returns.
Additionally, qualified disaster relief payments received from a government agency are excluded from gross income, and special provisions may apply for retirement plan distributions.
- Casualty losses: Affected taxpayers may deduct personal property losses not covered by insurance by filing Form 4684. The IRS has also extended the deadline to make the election to claim these losses.
- Retirement plan relief: Taxpayers may be eligible for special disaster distributions from their retirement plans or IRAs without incurring the 10% early distribution tax. Income from these distributions can be spread over three years.
IRS assistance and further information
The IRS automatically identifies taxpayers in the covered disaster areas and applies the appropriate filing and payment relief.
Those living or doing business outside these areas but affected by the disaster should contact the IRS disaster hotline at 866-562-5227 to request relief.
Tax preparers working with clients inside the disaster area may use the IRS's bulk request option for additional assistance.
Taxpayers can find more information on disaster-related tax relief and download the necessary forms by visiting the official IRS website at IRS.gov.