IRS gives weather victims in Mississippi, Iowa tax relief

Individuals and businesses in two states hit with severe weather earlier this year now have until Nov. 1 to file various federal individual and business tax returns and make tax payments.

The same relief, which applies to parts of Mississippi and Iowa, will be available to any other counties added later to the disaster area. The current list of eligible localities is on the tax relief in disaster situations page on IRS.gov.

Mississippi residents and businesses affected by severe storms, straight-line winds, tornadoes and flooding that began last April 8 qualify for this relief, which is being offered by the Internal Revenue Service is offering relief to any area designated by the Federal Emergency Management Agency. Individuals and households that reside or have a business in Hancock, Hinds, Humphreys, Madison, Neshoba and Scott Counties qualify for this relief. 

The relief postpones various tax filing and payment deadlines that occurred this year from April 8 through Nov. 1. Affected individuals and businesses will have until Nov. 1 to file returns and pay any taxes that were originally due during this period.

The November deadline now applies to:

• Individual income tax returns and payments due on April 15, 2024.
• 2023 contributions to IRAs and health savings accounts for eligible taxpayers.
• Quarterly estimated income tax payments that were due this year on April 15, June 17 and Sept. 16.
• Quarterly payroll and excise tax returns that were normally due this year on April 30, July 31 and Oct. 31.
• Calendar-year corporation and fiduciary returns and payments due on April 15, 2024.
• Calendar-year tax-exempt organization returns due on May 15, 2024.

Penalties for failing to make payroll and excise tax deposits due on or after April 8, 2024, and before April 23, 2024, will be abated if the deposits were made by April 23.

In Iowa, individuals and businesses affected by severe storms, flooding, straight-line winds and tornadoes that began on June 16 now also have until Nov.1 this year to file various federal individual and business tax returns and make tax payments. Individuals and households that reside or have a business in Buena Vista, Clay, Dickinson, Emmet, Lyon, O’Brien, Osceola, Plymouth, and Sioux Counties qualify.

The Nov. 1 filing deadline for Iowa applies to:

• Individuals who had a valid extension to file their 2023 return due to run out this Oct. 15. Because tax payments related to these 2023 returns were due on April 15, 2024, those payments are ineligible for this relief.
• Businesses with an original or extended due date including, among others, calendar-year partnerships and S corporations whose 2023 extensions run out on Sept. 16, 2024, and calendar-year corporations whose 2023 extensions run out on Oct. 15, 2024.

The Nov. 1 deadline for Iowa also applies to any payment normally due during this period, including the quarterly estimated tax payments due June 17 and Sept. 16 this year and the quarterly payroll and excise tax returns normally due on July 31 and Oct. 31 this year. 
Penalties on payroll and excise tax deposits due on or after June 16, 2024, and before July 1, 2024, will be abated as long as the tax deposits are made by July 1.

The IRS disaster assistance and emergency relief for individuals and businesses page has details on other returns, payments and tax-related actions qualifying for relief during the postponement period.  

The agency automatically provides filing and penalty relief to any taxpayer with an address of record in the disaster area. If an affected taxpayer does not have an address in the disaster area (because, for example, they moved to there after filing their return), and they receive a late-filing or late-payment penalty notice from the IRS for the postponement period, they should call the number on the notice to have the penalty abated.

The IRS will work with any taxpayer who lives outside the disaster area but has records necessary to meet a deadline occurring during the postponement period in the affected area. Qualifying taxpayers who live outside the disaster area should call the IRS at (866) 562-5227, including workers assisting the relief activities who are with a recognized government or philanthropic organization. Disaster area tax preparers with clients located outside the disaster area can choose to use the Bulk requests from practitioners for disaster relief option, described on IRS.gov.

Individuals and businesses in a federally declared disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in these instances, the 2024 return normally filed next year) or the return for the prior year (2023).

Taxpayers have up to six months after the due date of the taxpayer’s federal income tax return for the disaster year (without regard to any extension of time to file) to make the election. Write the FEMA declaration number — 4790-DR for Mississippi, 4796-DR for Iowa — on any return claiming a loss.