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The Internal Revenue Service (IRS) announced today that individuals and businesses across the entire state of Louisiana affected by Tropical Storm Francine will receive tax relief. Those impacted will have until February 3, 2025, to file federal tax returns and make payments.
This relief is being offered following the designation of affected areas by the Federal Emergency Management Agency (FEMA). Individuals and businesses in Louisiana, regardless of their location in the state, are eligible. A current list of eligible localities can be found on the IRS’s “Tax Relief in Disaster Situations” page.
Filing and Payment Relief
The IRS is postponing various tax filing and payment deadlines for those affected by the storm. The relief applies to deadlines that would normally occur between September 10, 2024, and February 3, 2025. As a result, taxpayers in Louisiana now have until February 3, 2025, to file returns and pay taxes that were originally due during this time frame.
This extension applies to individuals and businesses with valid extensions for their 2023 federal tax returns, although payments for those returns that were originally due before the storm are not eligible for the extended deadline. The new deadline also covers:
- Quarterly estimated income tax payments due on September 16, 2024, and January 15, 2025.
- Quarterly payroll and excise tax returns due on October 31, 2024, and January 31, 2025.
- Penalties for payroll and excise tax deposits that were due on or after September 10, 2024, and before September 25, 2024, will be abated as long as the deposits are made by September 25, 2024.
Further details on other returns, payments, and actions qualifying for relief during this postponement period can be found on the IRS’s “Disaster Assistance and Emergency Relief for Individuals and Businesses” page.
Automatic Filing and Penalty Relief
The IRS will automatically provide filing and penalty relief to all taxpayers whose address of record is in the designated disaster area. These individuals and businesses do not need to contact the IRS to receive the relief.
If an affected taxpayer moved into the disaster area after filing their return, they may still qualify for the relief. Should they receive a late filing or payment penalty notice, they are encouraged to call the number on the notice to request the penalty be abated.
The IRS will also work with taxpayers living outside the disaster area if their records necessary to meet filing deadlines are located in the affected area. These individuals should contact the IRS directly at 866-562-5227 to arrange relief. This includes workers assisting with relief efforts from recognized government or charitable organizations, as well as tax preparers with clients in the affected area.
Additional Relief for Disaster-Related Losses
Individuals and businesses in the disaster area who suffered uninsured or unreimbursed losses due to the storm can choose to claim these losses on either their 2024 return or their 2023 return. Taxpayers have until October 15, 2025, to make this election. When claiming the loss, they should write the FEMA declaration number 3614-EM on the return. More details can be found in Publication 547, which covers casualties, disasters, and thefts.
Qualified disaster relief payments are generally excluded from gross income. This applies to amounts received for necessary personal, family, living, or funeral expenses, as well as for repairs to a home or its contents. More information on this exclusion can be found in Publication 525, which covers taxable and nontaxable income.
Taxpayers affected by the disaster may also be eligible for special provisions related to retirement plans and individual retirement arrangements (IRAs). For example, they may be able to take a special disaster distribution without facing the 10% early distribution penalty or make a hardship withdrawal. Each retirement plan or IRA has specific rules that participants must follow.
