IRS grants Hurricane Isaias tax relief in Alabama, Florida

Taxpayers in parts of Alabama and Florida that sustained damage from Hurricane Isaias have until February to file various federal tax returns and make tax payments under disaster relief announced Wednesday by the IRS.

Individuals and businesses in 40 Alabama counties now have until Feb. 4, 2027, to file returns and pay taxes that otherwise were due on or after Oct. 7, while taxpayers in 27 Florida counties have until Feb. 8, 2027, to meet filing and payment obligations that fell due on or after Oct. 9.

The relief applies to various individual and business tax returns, including individual income tax returns on extension, partnership returns, S corporation returns, estate and trust returns, and certain employment and excise tax returns. The IRS said it will automatically identify taxpayers in the covered disaster areas and apply the relief.

Affected taxpayers also have additional time to make estimated tax payments. The IRS said penalties on payroll and excise tax deposits will be abated if deposits due between Oct. 7 and Oct. 22 are made by Oct. 22 in Alabama, and if deposits due between Oct. 9 and Oct. 26 are made by Oct. 26 in Florida.

The IRS also has provided disaster-related tax relief this year for earlier storms in New Mexico, Wisconsin, Ohio, Nebraska, West Virginia, and Guam.

The agency noted that the recently enacted Disaster Related Extension of Deadlines Act, P.L. 119-64, gives taxpayers additional time to claim a refund or credit when a federal tax deadline is postponed because of a federally declared disaster.

Taxpayers in the disaster areas also may elect to claim disaster-related casualty losses on either the return for the year the loss occurred or the prior year's return. The IRS said additional relief may become available as recovery efforts continue.

AICPA resources and advocacy

The AICPA’s disaster relief resource page includes a disaster toolkit with information about preparing before a disaster strikes and accessing resources during the recovery process to help protect personal and business assets.

For AICPA members directly affected by Hurricane Isaias or other disasters, the AICPA Benevolent Fund can help cover temporary living expenses, deductibles, furniture replacement, and more.

Earlier this week, the AICPA reminded states about the correct procedure to use to request disaster tax relief. Hurricane Isaias struck the Gulf states just days before the Oct. 15 extended filing deadline.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.