IRS extends hurricane tax relief for Milton, Helene and Debby 

Florida-based individuals and businesses have more time to file and pay

In addition to tax relief previously announced for taxpayers affected by hurricanes Helene and Debby, the IRS announced tax relief for Hurricane Milton, which effectively extends tax filing and certain payment deadlines to May 1, 2025, for affected taxpayers in all of Florida.

This automatic extension grants taxpayers more time to file federal individual and business tax returns, including 2024 individual and business returns normally due during March and April 2025 as well as 2023 individual and corporate returns with valid extensions. In addition, the extension applies to payments for tax year 2024, including quarterly estimated tax payments. The extension, however, does not apply to 2023 payments.

Which Florida counties are eligible for hurricane-related federal tax relief?

Following Hurricane Milton, the IRS granted relief to taxpayers in 51 counties throughout Florida. This includes individuals and businesses in six counties that previously did not qualify for relief under either Hurricane Debby or Hurricane Helene: Broward, Indian River, Martin, Miami-Dade, Palm Beach and St. Lucie. The disaster tax relief period for Hurricane Milton victims begins October 5, 2024, and ends May 1, 2025.

Hurricane Helene had previously prompted disaster tax relief for 41 counties in Florida, and Hurricane Debby led to tax relief for 61 Florida counties. Per the recent IRS announcement, individuals and businesses in the 20 counties previously receiving relief under Hurricane Debby, but not Hurricane Helene, will receive disaster tax relief under Hurricane Milton, extending their eligibility period from August 1, 2024, through May 1, 2025. Those counties are Baker, Brevard, Clay, DeSoto, Duval, Flagler, Glades, Hardee, Hendry, Highlands, Lake, Nassau, Okeechobee, Orange, Osceola, Polk, Putnam, Seminole, St. Johns and Volusia.

Additionally, in response to Hurricane Milton, the IRS is granting dyed diesel penalty relief to affected Florida taxpayers who sell or use dyed diesel fuel in vehicles suitable for highway use.

What if the tax preparer is located in Florida, but the taxpayer is not?

Per the IRS, “a taxpayer does not have to be located in a federally declared disaster area to be an ‘affected taxpayer.’ Taxpayers are considered ‘affected’ if records necessary to meet a filing or payment deadline postponed during the relief period are located in a covered disaster area.”

Taxpayers located outside of a disaster area may qualify for disaster tax relief if their preparer is in a federally declared disaster area, and the preparer is unable to file or pay on their behalf. However, there is a process for qualifying. Speak with your tax professional to learn more.

Which other states are eligible for hurricane-related federal tax relief?

The IRS is offering disaster tax relief to any area designated by the Federal Emergency Management Agency (FEMA). This currently includes the entire states of Alabama, Florida, Georgia, North Carolina and South Carolina, and parts of Tennessee and Virginia. Affected taxpayers in these areas have until May 1, 2025, to file 2024 federal tax returns and pay any tax due for tax year 2024. This extension also applies to filing of 2023 federal tax returns with valid extensions; however, 2023 tax payments are not eligible for this extension.

For an up-to-date list of eligible locations, visit IRS.gov.

Are states and municipalities offering additional tax relief for hurricane-affected taxpayers?

States typically follow IRS guidelines on hurricane relief, and some have already started issuing guidance. See below for a few recent updates. Check with your state for the latest tax relief guidance.

Florida

• Florida automatically follows IRS guidelines on disaster-related tax relief.
• In addition, Florida offers property tax relief for storm victims. Taxpayers who own residential property that was severely damaged by recent hurricanes may be eligible for a refund on property taxes paid under Section 197.319, Florida Statutes (F.S.). To qualify, the property must be deemed “uninhabitable” for at least 30 days. The property owner must file a sworn application (Form DR-465) and supporting documentation with the property appraiser’s office in the county where the property is located by March 1, 2025.

Georgia

• The Georgia Department of Revenue is extending certain tax return and payment deadlines to May 1, 2025, for taxpayers affected by Hurricane Helene.

North Carolina

• The North Carolina Department of Revenue has announced that it will offer tax relief to affected individual and business taxpayers in the entire state of North Carolina who were affected by Hurricane Helene. The department will remove any late action penalties assessed against affected taxpayers for licenses, returns, or payments due on September 25, 2024, through May 1, 2025, if the license is obtained, the return is filed, or the tax is paid by May 1, 2025.

Washington, D.C.

• The D.C. Office of Tax and Revenue has announced that it will follow federal tax relief for those affected by Hurricane Helene and will extend certain tax filing and payment deadlines for individuals and businesses affected by the hurricane until May 1, 2025.

Where can I get more information about disaster tax relief?

The IRS has a wealth of information and resources to help hurricane victims navigate disaster-related tax questions. In addition to resources available on IRS.gov, the IRS has a disaster hotline dedicated to helping taxpayers in these situations: 866-562-5227.

Additionally, Kaufman Rossin’s tax advisory team is available to assist clients with questions about their specific situations. Reach out to your tax professional for guidance – we’re here to help.