On July 22, 2024, the Internal Revenue Service (IRS) announced tax relief for individuals and businesses in multiple Texas counties affected by Hurricane Beryl, which began on July 5, 2024. These taxpayers now have until February 3, 2025, to file various federal individual and business tax returns and make tax payments.
This relief applies to areas designated by the Federal Emergency Management Agency (FEMA), including residents and businesses in counties such as Harris, Galveston, Brazoria, Fort Bend, and Hidalgo, among others. Additional counties may be added later.
The tax relief postpones various tax filing and payment deadlines between July 5, 2024, and February 3, 2025. Affected individuals and businesses now have until February 3, 2025, to file returns and pay any taxes originally due during this period, including:
Individuals, businesses, or tax-exempt organizations with a valid extension to file their 2023 federal return. Note that payments on these returns are not eligible for extra time since they were due before the hurricane occurred.
Quarterly estimated income tax payments normally due on September 16, 2024, and January 15, 2025, are now due on February 3, 2025.
Quarterly payroll and excise tax returns normally due on July 31 and October 31, 2024, and January 31, 2025. Payment deadlines are not extended.
Penalties for failing to make payroll and excise tax deposits due on or after July 5, 2024, and before July 22, 2024, will be abated if the deposits are made by July 22, 2024.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record in the disaster area. If eligible for relief and a late filing or late payment penalty notice is received for the postponement period, taxpayers should contact the IRS to abate the penalty.
Other tax relief options are available for those who suffered uninsured or unreimbursed disaster-related losses. They can choose to claim these losses on either the return for the year the loss occurred (2024) or the prior year (2023). Taxpayers have up to six months after the due date of the federal income tax return for the disaster year to make this election. The FEMA declaration number 4798-DR should be written on any return claiming a loss. Individuals may deduct casualty losses exceeding 10% of their adjusted gross income for the disaster year, while businesses may deduct casualty losses in full.
Learn More About the IRS Tax Relief
Comments