IRS Grants Relief to Taxpayers In Georgia Affected by Hurricane Idalia

Taxpayers residing or operating businesses in 28 of Georgia's 159 counties will now receive a relief package from the IRS

Internal Revenue Service (IRS) Building in Washington on May 22, 2023. Madalina Vasiliu/The Epoch Times

The Internal Revenue Service (IRS) has announced a tax relief package for individuals and businesses in Georgia that are grappling with the aftermath of Hurricane Idalia, while U.S. health authorities declared a public health emergency in the state.

Taxpayers residing or operating businesses in 28 of Georgia’s 159 counties will now have until Feb. 15, 2024, to file various federal individual and business tax returns, and make tax payments, the IRS said in a statement.

The tax relief measures postpone various tax filing and payment deadlines that occurred between Aug. 30, 2023, and Feb. 15, 2024.

Consequently, affected individuals and businesses will have until Feb. 15, 2024, to file returns and make tax payments that were initially due during this period.

Storm surge flooding from Hurricane Idalia stubbornly swills on Dodecanese Boulevard in Tarpon Springs, Fla., on Aug. 29, 2023, more than 12 hours after Hurricane Idalia passed. John Haughey/The Epoch Times

The tax relief initiative covers areas in Georgia that are designated by the Federal Emergency Management Agency. Currently, these are Appling, Atkinson, Bacon, Berrien, Brantley, Brooks, Bulloch, Camden, Candler, Charlton, Clinch, Coffee, Colquitt, Cook, Echols, Emanuel, Glynn, Jeff Davis, Jenkins, Lanier, Lowndes, Pierce, Screven, Tattnall, Thomas, Tift, Ware, and Wayne counties.

Initially, just three Georgia counties were declared eligible for emergency assistance but, over the weekend, officials expanded that by another 25 counties that can get help with cleanup after the storm.

The IRS said that taxpayers with an IRS address of record located in the disaster area will automatically receive filing and penalty relief without needing to contact the agency.

The IRS announcement mirrors the tax relief already being provided in Florida and South Carolina, which were both impacted by the hurricane, which hit Florida’s Gulf Coast in late August before turning to southeastern Georgia, where floodwater trapped some residents in their homes.

Storm surge flooding from Hurricane Idalia stubbornly swills on Dodecanese Boulevard in Tarpon Springs, Fla., on Aug. 29, 2023, more than 12 hours after Hurricane Idalia passed. John Haughey/The Epoch Times

Public Health Emergency

Separately, the U.S. Department of Health and Human Services (HHS) on Sept. 13 declared a public health emergency for Georgia due to the lingering impacts of the hurricane.

The public health emergency—which follows President Joe Biden’s disaster declaration for Georgia—gives health care providers greater flexibility in meeting the emergency needs of people covered by Medicare and Medicaid health plans.

“We will do everything in our power to assist Georgia officials with responding to the health impacts of Hurricane Idalia,” HHS Secretary Xavier Becerra said in a statement.

Hurricane Idalia made landfall on Aug. 30 with 125-mile-per-hour winds and a 6-foot storm surge in Florida’s Big Bend region before moving north into Georgia.

The storm caused an estimated $3 billion to $5 billion in private market insured losses, according to Moody’s Analytics.

Individuals and businesses in a federally declared disaster area that suffered uninsured or unreimbursed disaster-related losses can claim them on tax returns.

Also, taxpayers who received certain qualified disaster relief payments can generally exclude those amounts from their gross income for tax purposes.

Inflation Emergency Declared in Georgia

Earlier, Georgia Gov. Brian Kemp declared a state of emergency due to high inflation and negative economic conditions affecting Georgians, with the governor suspending taxes on diesel and gasoline to provide relief.

Mr. Kemp signed an executive order on Sept. 12 declaring a legal emergency over higher prices and suspending state taxes on diesel and gasoline starting on Sept. 13 and lasting through Oct. 12.

“From runaway federal spending to policies that hamstring domestic energy production, all Bidenomics has done is take more money out of the pockets of the middle class,” Mr. Kemp said in a statement, in which he blamed ”policies coming out of Washington” for the inflation-related hardship affecting people in Georgia.

“While high prices continue to hit family budgets, hardworking Georgians deserve real relief and that’s why I signed an executive order today to deliver it directly to them at the pump.”

Georgia Gov. Brian Kemp delivers the State of the State address on the House floor of the state Capitol in Atlanta on Jan. 25, 2023. AP Photo/Alex Slitz, File

While inflation has come down from the 9.1 percent peak in June 2022, many consumers are still reeling from the persistently elevated price pressures of recent years.

Calculations by Moody’s Analytics estimate that, due to high inflation, the typical household spent $709 more in July than they did two years ago to buy the same goods and services.

Mr. Kemp referred to the Moody’s Analytics calculations in his emergency declaration announcement, noting that suspending the state excise tax will save Georgians 31.2 cents per gallon of gasoline and 35 cents per gallon of diesel.

This isn’t the first time that Mr. Kemp has suspended gas taxes. He did so in March 2022 and then signed seven extensions after that before ending it in December 2022.

His office said that, when the gas tax was suspended for 10 months last time, Georgians saved roughly $1.7 billion at the pump.

The average cost of regular gasoline in Georgia is currently $3.57 per gallon, up from $3.24 a year ago, according to AAA.

Mr. Kemp’s office said that drivers can expect to see lower prices at the pump within a few days.