The Internal Revenue Service (IRS) has announced it is offering tax relief to individuals and businesses across the state of Louisiana in response to the devastation caused by Hurricane Francine.
The hurricane came ashore in southern Louisiana on Sept. 11, pounding parts of the state with heavy rains and gusty winds, leaving some 250,000 homes and businesses without power and causing extensive damage and flooding.
In response to the hurricane’s disruptive impact in Louisiana, the IRS said in a Sept. 13 statement that it’s offering tax relief to individuals and businesses across the entire state, including those outside the immediate disaster area.
“The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area,” the agency stated. “These taxpayers do not need to contact the agency to get this relief.”
The tax relief provides an extension for filing and payment deadlines for returns and taxes due from Sept. 10, 2024, through Feb. 3, 2025. This means that individuals, businesses, and tax-exempt organizations that had valid extensions to file their 2023 federal tax returns, originally due earlier this year, now have until Feb. 3, 2025, to file.
However, the IRS clarified that any tax payments associated with those returns remain due under the original deadlines unless those deadlines fell between Sept. 10, 2024, and Feb. 3, 2025.
The extended deadlines also apply to quarterly estimated income tax payments, which are normally due on Sept. 16, 2024, and Jan. 15, 2025. Employers will have more time to file quarterly payroll and excise tax returns, which were initially due on Oct. 31, 2024, and Jan. 31, 2025.
Penalties for failing to make payroll and excise tax deposits due between Sept. 10 and Sept. 25 will be abated, provided the deposits are made by the Sept. 25 deadline.
Further, the IRS said that taxpayers who suffered uninsured or unreimbursed losses due to Hurricane Francine have the option of claiming those losses on either their 2024 tax return, filed next year, or their 2023 tax return, filed this year. The option to claim losses on 2023 tax returns means that affected individuals can obtain potential tax refunds more quickly.
Qualified disaster relief payments, including funds received for essential personal, family, or living expenses, may be excluded from gross income, the IRS clarified. Affected individuals can also benefit from retirement-related tax relief, including special disaster distributions that avoid the 10 percent early distribution tax, as well as hardship withdrawals.
The aftermath of Hurricane Francine has led to extensive damage assessment and recovery efforts, with the IRS relief being part of the coordinated federal response.
Louisiana Gov. Jeff Landry and President Joe Biden both declared a state of emergency in Louisiana, freeing up federal resources to assist in recovery.
