Has Hurricane Milton impacted your home or business? If you’re unsure how to handle your taxes after the storm, you’re not alone. The IRS has extended tax relief for individuals and businesses affected by Hurricane Milton, giving you more time to file and manage payments. This article will walk you through how you can benefit from this relief, including extended deadlines, penalty relief, and more.
What IRS Tax Relief is Available for Those Affected by Hurricane Milton?
How Does the IRS Filing and Payment Relief Help You?
If you’re an affected taxpayer impacted by Hurricane Milton, the IRS has extended your filing and payment deadlines. You now have until May 1, 2025, to file federal individual and business tax returns and make tax payments. This extension covers 2024 quarterly estimated tax payments, individual and business tax returns, and quarterly payroll and excise tax returns that were normally due in early 2025. For businesses in 51 counties in Florida, this gives you more time to file and make the necessary payments without penalties.
Who Qualifies for the IRS Penalty Relief?
Businesses that missed payroll and excise tax deposits due between October 5 and October 21, 2024, qualify for deposit penalty relief. You won't face penalties if these excise tax deposits are made by October 21. This disaster tax relief applies to taxpayers located in the disaster area, which includes 51 counties in Florida impacted by Hurricane Milton. The relief applies to affected taxpayers who also missed other tax payments.
How Can Filing and Payment Relief Help Your Business Recover?
Why is the Extended Deadline Important for Small Businesses?
If your business is in one of the 51 counties in Florida affected by Hurricane Milton, the IRS extension allows extra time to handle your federal tax returns. This relief includes payroll and excise tax returns normally due in October 2024, January, and April 2025. The extended deadlines let you focus on recovery instead of rushing to file tax returns and make tax payments. If you missed any excise tax deposits due, this extension can prevent penalties while giving you the time to rebuild.
What Should You Know About Claiming Disaster Losses on Your Tax Return?
How Can You Claim Disaster-Related Losses for Tax Relief?
If your business sustained losses from Hurricane Milton, you can claim uninsured or unreimbursed losses on either your 2023 federal return or your 2024 tax return. This allows you to reduce your taxable income for the disaster year. You can decide which tax year—2023 or 2024—provides the most relief, offering significant disaster tax relief. The IRS gives you additional time to file and qualify for relief if you’re in the affected area designated by the Federal Emergency Management Agency (FEMA).
How Can You Avoid IRS Penalties While Focusing on Rebuilding?
What Steps Can You Take to Ensure Compliance with the IRS?
If you’re located in the disaster area, the IRS automatically grants filing and penalty relief for taxpayers affected by Hurricane Milton. This means you won’t need to worry about penalties for missing deadlines during the relief period. But, if you’ve recently moved to the disaster area or your IRS address doesn’t reflect your current location, you’ll need to contact the IRS to update your information. If you receive a penalty notice from the IRS, don’t panic. Call the IRS to have the penalty abated quickly and avoid further issues.
What You Need to Know About Disaster Tax Relief for Florida Taxpayers
How Does the IRS Relief Cover Multiple Hurricanes?
For Florida taxpayers who’ve been impacted by Hurricane Milton, Hurricane Debby, or Hurricane Helene, the IRS has announced tax relief that extends filing deadlines and removes penalties. Whether you were affected last year or last spring before the hurricane season, these relief programs allow you to file your 2023 federal return and manage estimated tax payments normally due in 2024 more flexibly. If you were impacted by Hurricane Debby or Hurricane Helene, the relief applies retroactively, covering individuals and businesses in 51 counties.
What Should You Do if You Receive a Penalty Notice?
If you receive a penalty notice from the IRS, especially after the IRS announced relief for taxpayers affected by Hurricane Milton, don’t ignore it. The IRS may not have updated your information if you recently relocated. Contact the IRS immediately to explain your situation and have the penalty removed. This applies to both individuals and businesses in the disaster area, so it’s important to ensure your address is updated in the IRS records to prevent further issues.
How Can Florida Taxpayers Stay Compliant with IRS Deadlines?
What Should You Know About Filing Your 2023 Federal Tax Return?
If you're one of the affected Florida taxpayers, especially those receiving relief for Hurricane Milton, you have until May 1, 2025, to file your calendar year 2023 federal return. This extension applies to both individuals and businesses in 51 counties. If you had an extension on your 2023 tax or 2023 individual and corporate returns, this relief helps you avoid rushing, giving you extra time to manage your tax obligations without stress.
What If You Reside Outside the Disaster Area?
Even if you’re outside the disaster area, you might still qualify for relief if your records, located in the disaster area, were impacted by Hurricane Milton or Hurricane Debby. The IRS recommends updating your IRS address of record to avoid issues with penalties. If you do receive a notice to have the penalty removed, contact the IRS promptly to explain your situation, especially if you need time to file various federal forms, such as quarterly estimated tax payments normally due in 2024.
How Taxfyle Can Help You Navigate Hurricane Milton Tax Relief
How Can Taxfyle Help You Manage Tax Filing and Payment Deadlines?
At Taxfyle, we understand the complexities of Hurricane Milton relief. Whether you're an individual or business in one of the 20 counties previously receiving relief under Hurricane Debby or Hurricane Helene, we can help you file your calendar year 2023 federal returns and ensure you meet all tax filing and payment deadlines. Our experts will guide you through handling certain tax forms and payments so you can focus on recovery.
How Can Taxfyle Assist Affected Taxpayers with IRS Requirements?
If you're a taxpayer with an IRS address in the disaster area, you may qualify for relief under the disaster tax relief programs. For those affected taxpayers who reside outside the disaster zone but have records in impacted areas, Taxfyle will work with you to ensure your IRS records are updated, avoiding penalties while you make payroll and excise tax payments. We'll handle everything, whether you're receiving relief under Hurricane Debby or need help claiming relief previously announced.
Maximizing Your Hurricane Disaster Tax Relief: Key Steps for Filing and Payment
If you were impacted by either Hurricane Debby or Hurricane Milton, you may qualify for relief to help you manage tax returns and pay deadlines. Whether you need to file your calendar-year 2023 federal return or seek extended deadlines, Taxfyle is here to assist individuals and businesses. The disaster area may include six additional counties, so ensure you take advantage of the disaster tax relief available this year.
Key Takeaways
- Extended Deadline for Filing: Taxpayers affected by Hurricane Milton now have until May 1, 2025, to file their calendar-year 2023 federal tax returns, giving them extra time to manage finances impacted by the disaster.
- Eligibility for Relief: You may qualify for relief under either Hurricane Debby or Hurricane Milton, ensuring extended deadlines and penalty relief for individuals and businesses across Florida.
- Expanded Relief Coverage: The IRS has extended disaster tax relief to six additional counties, allowing more affected taxpayers to benefit from the relief announced.
- Relief for Affected Areas: If your business was impacted spring before the hurricane occurred, you may still receive disaster tax relief, ensuring that recovery efforts aren’t burdened by immediate tax deadlines.
- Wider Relief Scope: Individuals and businesses in six newly added counties now qualify to receive disaster tax relief, expanding the scope of support provided by the IRS for Hurricane Milton recovery.
How can Taxfyle help?
Finding an accountant to file taxes is a big decision. Luckily, you don't have to handle the search on your own.
At Taxfyle, we connect you with licensed, experienced CPAs or EAs in the US. We handle the hard part of finding the right tax professional by matching you with a Pro who has the right experience to meet your unique needs and will file your file taxes for you.
