Due to lingering effects of Hurricane Helene, IRS grants additional disaster relief to taxpayers located in North Carolina. Affected taxpayers have until Sep. 25, 2025, to file returns and make payments.
The IRS initially issued guidance on Oct. 1, 2024 granting relief to taxpayers affected by Hurricane Helene in North Carolina that began on Sep. 25, 2024. On April 17, 2025, the IRS issued updated guidance providing affected taxpayers now have until Sep. 25, 2025, to file various individual and business tax returns and make tax payments. The IRS is offering the relief to those in areas designated by the Federal Emergency Management Agency, currently including Taxpayers residing or having a business in North Carolina.
Affected individuals and businesses will have until Sep. 25, 2025, to file returns and pay any taxes that were originally due during this period. This includes:
In addition to extensions of time to file tax returns and complete certain actions, federal disaster declarations offer taxpayers special options with respect to gain/loss recognition. Taxpayers who experience a casualty loss in a federally-declared disaster area may qualify to recognize losses in the year prior to the year the casualty actually occurred under section 165(i). Taxpayers who realize gains by receiving insurance proceeds in excess of basis may be able to defer gain recognition by reinvesting in qualified property under section 1033. Some of these actions are time sensitive, so taxpayers are encouraged to contact their tax advisor to take advantage of the full range of relief options. Taxpayers that will claim a disaster loss should note in bold letters at the top of their return the FEMA disaster declaration number. For the Sep. 25, 2024 Hurricane Helene in North Carolina, the designation is 3617-EM.
Please see the applicable news release and refer to Publication 547 and Instructions to Form 4684 Casualties and Thefts for instructions.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extending filing, payment or deposit due date falling within the postponement period, the taxpayer or their representative should contact the IRS to have the penalty abated.
The IRS will also work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
Any affected Taxpayer who needs a tax filing extension beyond Sept. 25, 2025, for tax year 2024 can get it, but they must request the extra time. This type of filing extension is not an extension of time to pay. These extension requests cannot be filed electronically. They can be filed only on paper using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
Though this extension will give a taxpayer until Oct. 15, 2025, to file, the IRS emphasized that tax payments are still due by Sept. 25, 2025.
Qualified disaster relief payments are generally excluded from gross income. This means that affected taxpayers can exclude from their gross income amounts received from a government agency for reasonable and necessary personal, family, living or funeral expenses, as well as for the repair or rehabilitation of their home, or for the repair or replacement of its contents. See Publication 525 for details.
Additional relief may be available to affected taxpayers who participate in a retirement plan or individual retirement arrangement (IRA). For example, a taxpayer may be eligible to take a special disaster distribution that would not be subject to the additional 10% early distribution tax and allows the taxpayer to spread the income over three years. Taxpayers may also be eligible to make a hardship withdrawal. Each plan or IRA has specific rules and guidance for their participants to follow.
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