Update, Friday, Oct. 11, 2024: The Internal Revenue Service today announced disaster tax relief and a Feb. 3, 2025, deadline for individuals and businesses of the San Carlos Apache Tribe in the state of Arizona who were affected by a wildfire that ignited in July.
Hurricane Helene, and now Hurricane Milton, and their deadly aftermath have, naturally, garnered most attention. But other parts of the United States also have been hit by disasters.
Wildfires erupted on June 22 in parts of Washington state. Less than a month later, on July 10, the lands of the San Carlos Apache Tribe in the state of Arizona were torched by the Watch Fire. Then on July 13, parts of Illinois endured severe storms and flooding.
Now the Internal Revenue Service has granted affected taxpayers in those three states, both businesses and individuals, tax relief.
Washington state wildfires: Certain taxpayers in Washington state affected by wildfires that began on June 22 now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.
Currently, the taxpayers eligible for the fire-related tax relief include the Confederated Tribes and Bands of the Yakama Nation. The same relief will be available to any other localities that Federal Emergency Management Agency (FEMA) might later add to the disaster area.
Under the IRS’ relief, tax filing and payment deadlines that occurred beginning on June 22 and ending on Feb. 3, 2025 qualify. This includes the following tax responsibilities.
- Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return. But since any tax due on these returns should have been paid by April 15 before the storms occurred, any additional tax-due amounts are not eligible for the extra time.
- Quarterly estimated income tax payments normally due on Sept. 16, 2024, and Jan. 15, 2025.
- Quarterly payroll and excise tax returns normally due on this July 31 and Oct. 31, and Jan. 31, 2025.
The IRS also will abate penalties for affected Washington state businesses that failed to make payroll and excise tax deposits due on or after June 22 and before July 8 as long as the deposits were made by July 8, 2024.
Arizona wildfire: Taxpayers affected by the Watch Fire that began on July 10 on San Carlos Apache Tribe land in Arizona also now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.
Under the IRS’ relief, tax filing and payment deadlines that occurred beginning on July 10 and ending on Feb. 3, 2025 qualify. This includes the following tax responsibilities.
- Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return. But since any tax due on these returns should have been paid by April 15 before the storms occurred, any additional tax-due amounts are not eligible for the extra time.
- Quarterly estimated income tax payments normally due on Sept. 16, 2024, and Jan. 15, 2025.
- Quarterly payroll and excise tax returns normally due this July 31 and Oct. 31, and Jan. 31, 2025.
The IRS also will abate penalties for affected Arizona state businesses that failed to make payroll and excise tax deposits due on or after after July 10 and before July 25 as long as the deposits were made by July 8, 2024.
The same relief will be available to individual and business taxpayers in any other localities that FEMA might later add to this disaster area.
Illinois storms and flooding: Similar relief is granted to taxpayers in Illinois who live or have a business in disaster-declared areas struck by severe storms and flooding that began on July 13. Currently, this includes Cook, Fulton, Henry, St. Clair, Washington, Will, and Winnebago counties. Again, if FEMA adds other counties to this disaster designation, those taxpayers will get the same relief.
These filers also have until Feb. 3, 2025, to file various individual and business tax returns and make tax payments. The following tax obligations fall under the new deadline.
- Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return. Again, payments on these returns are not eligible for the extra time because they were due last Tax Day before the storms occurred.
- Quarterly estimated income tax payments normally due on Sept. 16, 2024, and Jan. 15, 2025.
- Quarterly payroll and excise tax returns normally due this July 31 and Oct. 31, and Jan. 31, 2025.
In addition, penalties for failing to make payroll and excise tax deposits due on or after July 13 and before July 29 will be abated for these affected Illinois taxpayers as long as they made the deposits by July 29.
You can keep up with IRS disaster relief announcements on two IRS.gov pages, Around the Nation where you can click on your state for information, and Tax Relief in Disaster Situations where you can check announcements by date.
Tax deduction options: Since those who sustain damages in a major disaster can claim those losses as an itemized tax deduction, you also should check out my post on considerations in making a major disaster tax claim.
One thing to think about is whether to claim the losses on the federal return for the tax year in which the disaster happened, or the prior tax year. Filing a prior-year disaster claim could get you a tax refund now, providing money you can use toward storm recovery efforts. But run the numbers to see which filing year will get you more tax relief.
Whenever you do file a return in which special disaster tax relief is granted or for which you are claiming a disaster deduction, write the FEMA declaration number on your return. It is DR-4819-IL for Illinois taxpayers. It’s DR-4823 for the tribal taxpayers in Washington state. It's DR-4833 for the tribal taxpayers in Arizona.
You also might find these items of interest:
- Resources to help deal with major natural disasters
- The long list of disaster area taxpayers with a Feb. 3, 2025, deadline
- A pre-disaster inventory can pay off when filing insurance or tax claims
- Storm Warnings: Preparing for, recovering from, and helping those affected by natural disasters
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