IRS Tax Relief for Taxpayers in South Carolina, North Carolina, Florida, and Georgia

On August 9, 2024, the IRS announced tax relief for individuals and businesses in South Carolina, North Carolina, Florida, and Georgia affected by Hurricane Debby. Below are the key details of this announcement:

Returns Affected

Taxpayers in the affected areas now have until February 3, 2025, to file various individual and business tax returns. The relief applies to:

• Individual income tax returns
• Business tax returns
• Quarterly estimated tax payments
• Payroll and excise tax returns

The relief for individuals and calendar-year business income tax returns is only applicable to those that have filed a valid extension for the tax year-ended 2023. Regarding quarterly estimated payments, relief is applicable for payments originally due on September 16^th, 2024, and January 15^th, 2025 for calendar-year businesses. For payroll and excise tax returns, relief is only applicable to payroll and excise tax returns originally due October 31^st, 2024, and January 31^st, 2025.

For fiscal year-end businesses, relief is available for any income tax returns or estimated payments with original or extended due dates that fall within the relief period.

Applicable Counties

• ‍South Carolina: All counties‍
• North Carolina: Most counties‍
• Florida:  Most counties‍
• Georgia: Only Select counties

This relief is available only for areas declared as federal disaster zones, and a comprehensive list of counties qualified for this relief is available at https://www.irs.gov/newsroom

Penalty Relief for Payroll and Excise Tax Deposits

In addition to deadline extensions, there will be some relief for penalties incurred for certain payroll and excise tax deposits. In Florida, penalties for failing to make payroll and excise tax deposits due on or after August 1^st, 2024, and before August 16^th, 2024, will be abated, if the deposits are made by August 16^th, 2024. Similarly, in South Carolina and Georgia, penalties for failing to make payroll and excise tax deposits due on or after August 4^th, 2024, and before August 19^th, 2024, will be abated, if the deposits are made by August 19^th, 2024. Finally, in North Carolina, penalties for failing to make payroll and excise tax deposits due on or after August 5^th, 2024, and before August 20^th, 2024, will be abated, if the deposits are made by August 20^th, 2024.

Additional Tax Relief

In addition to the filing deadline extensions, the IRS is allowing for an election to recognize uninsured or unreimbursed losses to be recognized in the year incurred (2024) or in the prior year return (2023) Taxpayers in effected areas have been granted an extra six months after the disaster year return due date, ignoring extensions. For individual taxpayers, this election deadline is October 15^th, 2025. Taxpayers should consult a tax professional to ensure compliance with IRS guidance.

How to Qualify

Eligible taxpayers do not need to apply for the extension or relief. The IRS will automatically identify and provide relief based on the addresses in its records. If affected taxpayers receive a penalty notice, they should contact the IRS to request abatement.

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