IRS Disaster Tax Relief Extends Filing Deadlines for New York Storm Victims

The Internal Revenue Service announced IRS disaster tax relief for New York taxpayers in Suffolk County in September 2024, extending the time to file federal income tax returns and make certain payments until February 3, 2025. The relief followed a federal disaster declaration after severe storms and flooding in August 2024, which caused widespread damage. That postponement period has since passed, but the relief measures and procedures described below reflect the IRS notice as issued.

Disaster Assistance for Affected Taxpayers

The IRS issued its disaster assistance announcement on September 10, 2024, following the Federal Emergency Management Agency's disaster declarations for Suffolk County. The covered disaster area included communities hit by severe storms and flooding beginning August 18, 2024. Under the relief notice, affected taxpayers had until February 3, 2025, to meet a range of federal filing and payment obligations without incurring penalties.

Extended Deadlines and Postponement

The relief postponed the due date for various tax return filings and payments. This included:

• Individual income tax returns with valid extensions originally due October 15, 2024. Note that payments tied to 2023 returns were not eligible for the extension, as those were due the prior spring before the storms occurred.
• Business returns for partnerships and S corporations are due September 16, 2024
• Corporate returns with extensions through October 15, 2024
• Quarterly estimated tax payments due September 16, 2024, and January 15, 2025
• Quarterly payroll and excise tax returns due October 31, 2024, and January 31, 2025

These obligations were given a unified postponed deadline of February 3, 2025.

Automatic Relief

The IRS automatically applied the postponement to taxpayers whose principal residence or principal place of business was in Suffolk County. No separate application was required. The agency identified eligible records using taxpayer addresses on file and applied disaster assistance without further action from the taxpayer.

Additional Relief Measures

The IRS notice confirmed limited penalty relief for certain late deposits. Specifically, penalties for failing to make payroll and excise tax deposits due on or after August 18, 2024, and before September 3, 2024, were abated, provided those deposits were made by September 3, 2024. Taxpayers who received a late-filing or late-payment penalty notice for an obligation that fell within the postponement period could call the number on the notice to request abatement.

The IRS also waived fees for requests to retrieve past documents, including previously filed returns and transcripts, provided taxpayers included the FEMA declaration number 3613-EM on their application.

Casualty loss deductions can be claimed on either the 2023 or 2024 returns, giving impacted individuals and businesses flexibility in reporting disaster-related losses. Taxpayers claiming a loss were advised to write the FEMA declaration number 3613-EM on the relevant return and to maintain documentation supporting their claims.

Disaster Declarations and IRS Authority

Disaster assistance is provided when the Federal Emergency Management Agency issues a disaster declaration that formally recognizes a community as a disaster area. Once this step occurs, the IRS can exercise authority under Section 7508A of the Internal Revenue Code, allowing the postponement of certain tax deadlines for federal income tax returns and related payments.

The relief applies when a taxpayer's principal residence, principal place of business, or tax records are in the disaster area. This ensures that individuals, corporations, and other entities affected by a natural disaster are not penalized for missed obligations while they focus on recovery.

The Suffolk County storms began on August 18, 2024, bringing heavy flooding, property damage, and business disruption. The subsequent disaster declarations created the legal pathway for the IRS to issue relief, ensuring that affected taxpayers had more time to file, pay, and apply for available assistance programs.

Guidance for Affected Taxpayers

"The declaration permits the IRS to postpone certain tax deadlines for affected taxpayers in the covered disaster area," the agency stated in its official notice. The IRS added that most relief was applied automatically based on address records. Taxpayers outside the disaster area could request assistance if their records were maintained in Suffolk County or if they were relief workers serving in the community.

The IRS also noted that it would work with any taxpayer who lived outside the disaster area but whose records needed to meet a deadline during the postponement period were located in the affected area.

Time to File and Access Relief

The IRS advised affected taxpayers to review the disaster assistance page on IRS.gov for complete guidance, application details, and notices. Those outside Suffolk County were directed to contact the IRS disaster hotline at 866-562-5227 to request relief.

Free tax preparation services were available through Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites. Military members could access MilTax through the Department of Defense. Taxpayers requesting copies of prior returns or transcripts were advised to include the FEMA declaration number 3613-EM on mailed documents to ensure proper processing.

Source Links and Further Information

Taxpayers seeking updates and guidance on IRS disaster tax relief can access these official resources:

• IRS Disaster Assistance and Emergency Relief Page: This page provides official updates on disaster declarations, extensions for federal income tax return filings, payment postponements, and penalty relief.
• IRS Notice IR-2024-234 (September 10, 2024): The original IRS relief announcement covered Suffolk County, New York, and counties in Connecticut.
• FEMA Disaster Declarations Reports: This resource contains detailed records of federally declared disasters, including Suffolk County's August 2024 storms and related disaster assistance notices.
• IRS Disaster Hotline (866-562-5227): Taxpayers outside the covered disaster area could call this number to request relief, confirm application status, or ask questions about notices and documents.

By William Mc Lee, Editor-in-Chief & Tax Expert—Get Tax Relief Now