Businesses in disaster-stricken areas of the United States and its territories have limited time to file extended tax returns, with deadlines approaching as early as February 3.
These extensions, granted by the IRS for businesses hampered by severe weather in 2024, are lifelines for small-business owners working to recover from natural disasters.
Why It Matters
The IRS routinely extends tax deadlines for businesses and individuals in areas designated as disaster zones by the Federal Emergency Management Agency (FEMA). Extreme weather like hurricanes, tornadoes and wildfires can disrupt business operations, making it difficult for affected taxpayers to meet original deadlines. In response, the IRS offers automatic extensions for those within federally declared disaster areas. But these extensions are not indefinite, and nearing deadlines require prompt attention.
What To Know
According to the Small Business Administration (SBA), over 40 percent of small businesses fail to reopen after a disaster.
Taxpayers in Louisiana, Vermont, Puerto Rico and the Virgin Islands, among others, must file by February 3. Those in Alabama and Georgia have until May 1 due to the impacts of Hurricane Helene, along with parts of Florida, Tennessee, North and South Carolina, and Virginia.
If you’re unsure, the IRS releases state-specific tax relief guidance for businesses and individuals based on disaster declarations.
Wildfires & Internationally Affected Taxpayers
In addition to the coming deadlines, affected taxpayers may claim uninsured losses from disasters on their 2024 or 2025 tax returns. The relief applies to a broad range of filings: individual returns, business filings and quarterly estimated payments. For businesses that have lost important records stored in disaster zones, the IRS provides assistance through dedicated channels.
For taxpayers in areas impacted by international events—such as ongoing conflicts in Gaza and Lebanon—the deadline is extended to September 30. This includes all 2023 and 2024 returns. These extensions provide more time for businesses and individuals to recover financially while managing the logistic challenges of filing accurate returns.
The IRS also has announced significant tax relief for thousands of residents affected by the wildfires in California. Multiple devastating blazes engulfed the Los Angeles area, causing up to $250 billion in damages. Tax filing and payment deadlines for those residents with homes or businesses in the city will be extended until October 15.
What Happens Next
Taxpayers are encouraged to act promptly to meet filing requirements in time for their respective deadlines. The IRS has outlined specific deadlines for different regions and is providing automatic relief for those who qualify. Businesses and individuals unsure of their status should contact the IRS or consult tax professionals to avoid penalties and ensure they benefit from all available relief programs.
This article includes reporting from the Associated Press.
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