IRS extends Oct. 15 tax deadline for states hit by hurricanes, severe weather
By Susan Tompor, USA TODAY,
11 hours ago
The scariest thing to do in October for many is facing the ghost of tax deadlines past and running into Oct. 15 if you had a six-month extension. That's unless you've been hit by a hurricane or other horrific weather disaster and now have a new deadline for 2023 returns.
Some people do have extra time. A string of severe storms, tornadoes, flooding, wildfires, mudslides and other weather-related disasters this year has meant that the IRS is giving extra time to many people in a long list of communities. Deadlines will vary depending on the disaster and the locality. Make sure to understand the extended deadline that applies to your area, as some deadlines can even vary within a given state.
Typically, disaster-related extensions are automatic and you're also getting an extension to pay, as well as file, in these unique situations. The IRS also has procedures to ensure filing and payment relief for other taxpayers who have their records in the disaster area, those who have recently moved into the area, or those with tax clients situated outside the affected zones.
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief.
Oct 4, 2024; Asheville, NC, USA: Lisa Briggs, director of emergency and disaster management at Western Carolina University, director of the university's cadaver dog training program, Walnut fire department volunteers and Omna, a 5-year-old full German Shepherd, a cadaver dog, paddle close to the edge at French Broad River during a search and rescue operation on Friday, Oct. 4, 2024, during the aftermath of flooding caused by the remnants of Hurricane Helene. Mandatory Credit: Gaby Velasquez-USA TODAY Gaby Velasquez, Gabriela Velasquez-USA TODAY
The IRS noted that such tax relief could apply to those with an IRS address of record in areas covered by Federal Emergency Management Agency disaster declarations and those returning from a combat zone.
Taxpayers affected by the terrorist attacks in Israel have until Sept. 30, 2025, to file their 2023 returns and pay any tax due.
Members of the military and others serving in a combat zone typically have 180 days after they leave the combat zone to file returns and pay any taxes due.
Tax relief can offer much more than extra time
Those hit by major disasters can receive significant relief, not just an extension of a deadline, such as being able to claim disaster-related casualty losses for either the year the disaster took place or the prior year for uninsured or unreimbursed losses.
"You have to be impacted, not just live in a zone to take advantage of some of those provisions," said Mark Steber, chief tax officer at Jackson Hewitt Tax Service.
"There are some very, very nice tax provisions that can help jump-start you back to normal," he said. "Get your life in order first, your family, your home and so forth. But as soon as you come up, you really do need to look at some of the tax provisions. They can be a really nice financial injection."
Steber was hunkering down in his home in Sarasota, Florida, on Tuesday morning, which was in the path of Hurricane Milton . The hurricane regained Category 5 strength Tuesday afternoon and was expected to make landfall by late Wednesday night. His home has a generator, he said, and he has made other emergency preparations. He had plans to grill a pork shoulder, as well.
If someone is in the path of a major storm days before Oct. 15, Steber said, they need to "prioritize life" and prepare for the storm and not necessarily dwell on the tax deadline for those who filed for an extension back in April. While taxes are important, he said, it's essential to stay out of harm's way.
As for Hurricane Milton, Steber said he would not be surprised to see the IRS issue tax relief for those hit by the upcoming hurricane. But he noted some areas in Milton's path already had been hit by Hurricane Helene and are now covered by an extended deadline.
Wolters Kluwer Tax & Accounting noted Tuesday that several crucial tax relief options may be available to individuals and businesses affected by Hurricane Helene and the impending Hurricane Milton, including penalty-free access to retirement funds.
The firm noted that the Federal Emergency Management Agency has indicated that about 150 federal disaster declarations have taken place so far this year, including seven for the states affected by Hurricane Helene alone. About 44 states have been affected by federal disaster declarations in 2024, as well as two territories and half a dozen Native American tribes or bands.
What taxpayers need to know
Taxpayers who have yet to file their 2023 federal income tax returns continue to face the Oct. 15 deadline for those who had extensions.
Some Michigan taxpayers who were hit by severe storms, flooding and tornadoes back in August 2023 did receive some tax relief earlier. They were allowed to file 2023 returns through June 17 , instead of April 15. But there is no extension on that extension and the Oct. 15 deadline remains ahead. The taxpayers who qualified for this extension in Michigan automatically received it and did not need to request more time.
Some last-minute tips
Procrastinators and those scared silly by taxes will want to keep a few points in mind as the Oct. 15 deadline nears:
Make sure to file that return by Oct. 15 if you're not covered by emergency-related tax relief.
Double check your math and your paperwork. "Do not rush or panic just to get your taxes done," Steber said.
Be accurate. Take your time to make sure you use the correct Social Security numbers and other figures.
Avoid the mail.
Know you're not alone: The IRS projected earlier this year that about 19 million taxpayers would file extensions.
Henry Grzes, lead manager for tax practice and ethics for the American Institute of CPAs, said taxpayers who are running into the Oct. 15 deadline want to take their time and review prior year returns to see whether you had a deduction in a prior year but have forgotten about it for this year.
If you filed an extension and you don’t file your return by Oct. 15, your penalty and interest calculations are grandfathered back to the original April 15 due date for 2024 tax returns.
Filing online for an extension or mailing in Form 4868 technically only gave you more time to file a return. You still needed to pay a sizable amount of the tax owed by the original filing deadline, which was April 15 for much of the country, to avoid interest and late-payment penalties.
Waiting even longer now by not filing by Oct. 15, Steber said, only makes the situation worse.
Taxpayers who fail to meet the Oct. 15 deadline, Steber said, can run into "the triple-whammy risk."
"The first being you face potential penalties. Failure to file your taxes. Failure to pay your taxes. Sometimes, there's an underpayment penalty leveled on top of that."
"The second part, which is equally bad, is the interest on the underpayment of taxes and now penalties, compounding daily."
"The third thing that people often fail to understand," Steber continued, "is once you get into this vortex of tax, late filing penalties, payment penalties and interest, you're typically beyond your means to fix it yourself. You have to pay someone to come in to help understand all the penalties. Can some of them be abated if you have reasonable cause?"
Right now, many tax professionals are available to work on tax returns to file by the Oct. 15 deadline. If you don’t already have a relationship in place, you may be able to find someone who can help you, Grzes said. Maybe someone who is a client of the CPA, he said, could introduce you to someone at the firm.
Big tax prep companies also have offices open now to handle the Oct. 15 deadline but don't wait until the last day.
Free also remains an option if your taxes are straightforward. The "Free File" program continues to be offered online through Oct. 15 for millions of people across the country. Free File is found at IRS.gov. Free File, which provides free tax software through various commercial partners, is an option for those with up to $79,000 in adjusted gross income currently.
MilTax remains available as a free online service for members of the military and qualifying veterans to file their federal income tax returns and up to three state income tax returns.
Look at last year's return for items that are typically included on your return, such as interest from a bank account. Any missing information or mismatched information on IRS systems could trigger trouble, including delaying a refund.
The IRS notes taxpayers can access their Individual Online Account information, including any amount owed, payments, tax records and more. There are no fees to download and print your transcripts. New users will need their photo identification to verify their identity.
If you need to pay, the IRS has a variety of options, including a way to pay online directly from a checking or savings account for free and schedule payments up to 365 days in advance.
Are you getting money back? Hard to imagine some would file for an extension if they're owed money. But some people do just that when they're running out of time or don't have the right paperwork in hand.
The average tax refund was $2,869 — up 2% from last year — based on IRS data through May 10. Overall, the IRS issued 93.94 million refunds, down 1% from the year earlier period.
Most people requested direct deposit of their federal income tax refunds, but IRS data indicates that more than 7.27 million refunds would have been issued by check.
If you are owed a tax refund, the best bet is direct deposit. But again, you want to double check your account information to make sure you're directing the IRS to send the money to the correct account.
Remember, criminals target the mail. "There's no reason to get a paper check," Steber said.
"Criminals typically steal personal checks, business checks, tax refund checks and checks related to government assistance programs, such as Social Security payments and unemployment benefits," according to a February alert by the Financial Crimes Enforcement Network.
Once the checks are deposited by crime rings, the alert said the bad actors often "rapidly withdraw the funds through ATMs or wire them to other accounts that they control."
After the initial theft, the alert noted, criminals may continue to exploit victims by using the personal identifiable information found in the stolen mail for future fraud schemes, such as credit card fraud or credit account fraud.
"Unfortunately, with paper checks, things such as theft is all too common," said Matt Hetherwick, chief program officer for the nonprofit Accounting Aid Society in Detroit.
Even when there isn't a theft, the tax filer will end up waiting longer to receive a refund by check than by direct deposit. Some may also incur fees to cash the check, if they don't have a bank account.
Accounting Aid Society encourages tax filers to receive direct deposit, Hetherwick said. If they don't have a bank account, the nonprofit offers a reloadable debit card so the tax filer can have the refund directly deposited to that card. Or tax filers are encouraged to visit a local bank to open an account.
You also should avoid mailing a check to the IRS to pay taxes that you owe. You want to avoid the risk of seeing that mail stolen. Crooks can alter the checks and change the amount you wrote on the check to make sure they're able steal more money. They also can use stolen checks to create counterfeit checks.
See “Where’s My Refund?” at IRS.gov or the IRS2Go mobile app for updates on your refund. If you spot that the IRS has issued your refund, but you haven’t received it, your refund may have been lost, stolen or misplaced.
Then, you'd want to ask the IRS to do a refund trace to track a lost, stolen or misplaced refund check or to verify a financial institution received a direct deposit.
To do a trace, you can call the IRS Refund Hotline at 800-829-1954 and use the automated system or speak with an IRS employee. Or you could go to "Where’s My Refund?” at IRS.gov or use the IRS2Go mobile app and follow the prompts to begin a refund trace.
Get updates delivered to you daily. Free and customizable.
It’s essential to note our commitment to transparency:
Our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. As a platform hosting over 100,000 pieces of content published daily, we cannot pre-vet content, but we strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation.
Local News
Comments / 0