Hey everyone! I’m Bette Hochberger, CPA, CGMA. In the wake of Hurricane Milton’s impact on Florida, the Internal Revenue Service (IRS) has announced significant tax relief to support individuals and businesses across the state. This tax deadline extension offers much-needed breathing room for those previously racing against the October 15th deadline.
Who is Affected?
The relief applies to taxpayers in 51 counties within Florida, including those in Broward, Indian River, Martin, Miami-Dade, Palm Beach, and St. Lucie counties, who were not previously covered under Hurricanes Debby and Helene. Additionally, taxpayers in 20 counties, such as Baker, Brevard, and Duval, who were granted relief under Debby but not Helene, are now also eligible. Overall, this relief encompasses the entire state of Florida, providing a unified extension until May 1, 2025.
Key Extensions and Relief Details
New Deadlines
Affected taxpayers now have until May 1, 2025, to file various federal individual and business tax returns and make corresponding tax payments. This includes returns and payments initially due in March and April 2025.
Eligible Returns
The extended tax deadline applies to 2024 tax returns due in early 2025, as well as 2023 returns with valid extensions. However, note that payments on returns due before the hurricane are not eligible for extension.
Quarterly Payments and Returns
The relief covers quarterly estimated tax payments due in January and April 2025 and quarterly payroll and excise tax returns due from October 2024 through April 2025.
Penalty Relief
For deposits due post-October 5, 2024, penalties will be abated if deposits are made by October 21, 2024. This relief extends to a wide range of counties, ensuring comprehensive coverage.
Additional Provisions
Automatic Relief
The IRS automatically applies filing and penalty relief based on the taxpayer’s address of record. If discrepancies arise, such as new addresses not yet updated in IRS records, affected taxpayers should promptly contact the IRS to resolve any issues.
Disaster Loss Claims
Taxpayers with uninsured disaster-related losses may claim these on either their 2023 or 2024 returns. Remember to include the FEMA declaration number 3622–EM on any claim.
Retirement Plan Provisions
Special provisions allow for disaster-related withdrawals from retirement accounts, exempting them from the usual 10% early distribution tax and permitting income spread over three years.
Staying Informed
The IRS remains committed to assisting those in disaster-stricken areas and may introduce additional relief measures as needed. To stay ahead of ongoing updates, visit the IRS’s disaster relief page or consult with a tax professional.
For those impacted by Hurricane Milton, this extension provides a critical opportunity to address your tax obligations with greater flexibility and support. Our firm stands ready to assist you through this process, ensuring you maximize the benefits of these provisions!
For more details, or if you need personalized assistance, please don’t hesitate to reach out to us. We’re here to help!
As always, stay safe, and I’ll see you next time.
