By Alon Bidden
Published on:
The IRS has announced a much-needed extension for tax deadlines in response to the devastating impact of Hurricane Beryl in early July 2024.
This extension aims to provide relief to residents and businesses across 67 counties in Texas, who have been grappling with severe flooding, extensive property damage, and power outages.
Here’s what you need to know about the new deadlines, eligibility, and available benefits.
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For those affected by Hurricane Beryl, the IRS has extended the tax filing and payment deadlines to February 3, 2025.
This extension applies to federal individual and business tax returns, providing much-needed breathing space for those dealing with the aftermath of the storm.
The IRS’s decision allows taxpayers to focus on recovery efforts without the immediate pressure of tax deadlines.
One of the critical provisions for disaster victims is the ability to claim uninsured or unreimbursed disaster-related losses on their tax returns.
This can provide significant financial relief, as it allows individuals and businesses to deduct these losses from their taxable income.
Alex Beene, a financial literacy instructor, emphasizes the importance of utilizing this benefit to ease financial burdens.
To take full advantage of this provision, gather all relevant documentation of your losses, consult with a tax professional, and ensure all necessary forms and information are ready for filing by the new deadline. This preparation is crucial for maximizing the relief available.
Taxpayers have the option to claim disaster-related losses for either the current tax year or the previous tax year (2023). This flexibility allows you to choose the most beneficial year, depending on your financial situation and the extent of your losses.
This is particularly useful for those whose insurance doesn’t cover all damages, providing an additional layer of financial security.
Residents and businesses in the following counties are eligible for the extended tax deadlines and related benefits: Anderson, Angelina, Aransas, Austin, Bowie, Brazoria, Brazos, Burleson, Calhoun, Cameron, Camp, Cass, Chambers, Cherokee, Colorado, Dewitt, Fayette, Fort Bend, Freestone, Galveston, Goliad, Gregg, Grimes, Hardin, Harris, Harrison, Hidalgo, Houston, Jackson, Jasper, Jefferson, Kenedy, Kleberg, Lavaca, Lee, Leon, Liberty, Madison.
Marion, Matagorda, Milam, Montgomery, Morris, Nacogdoches, Newton, Nueces, Orange, Panola, Polk, Refugio, Robertson, Rusk, Sabine, San Augustine, San Jacinto, San Patricio, Shelby, Trinity, Tyler, Upshur, Victoria, Walker, Waller, Washington, Webb, Wharton, and Willacy.
The IRS may extend relief to additional counties if they are later declared part of the disaster area.
The IRS will automatically apply the relief to taxpayers whose addresses are on file in the affected areas, simplifying the process.
If you have recently moved into an affected area and receive a penalty notice for late filing or payment, it’s essential to contact the IRS to update your address and ensure you receive the appropriate relief.
For payroll and excise tax deposits due between July 5, 2024, and July 22, 2024, the IRS has waived penalties, provided deposits are made by July 22, 2024.
This waiver is a critical component of the relief measures, offering immediate financial flexibility for businesses struggling with the disaster’s impact.
The decision to extend tax deadlines also benefits the IRS, as it helps prevent rushed filings that could lead to errors.
This careful approach ensures more accurate tax returns, which ultimately aids in efficient processing and reduces the need for later corrections.
In conclusion, the IRS’s extension of tax deadlines and other relief measures provide essential support to those affected by Hurricane Beryl. By staying informed and utilizing available resources, taxpayers can better navigate the challenging recovery period.
The deadline is extended to February 3, 2025.
Yes, you can claim uninsured or unreimbursed losses.
Check if your county is listed among the eligible ones.
No, if your address is on file in an affected area, it’s automatic.
You can still claim disaster-related losses on your tax return.
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