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IRS announces tax relief for taxpayers impacted by severe storms and tornadoes in Iowa

IRS announces tax relief for taxpayers impacted by severe storms and tornadoes in Iowa

The Internal Revenue Service (IRS) has announced tax relief for individuals and businesses in Iowa affected by the severe storms and tornadoes that occurred on April 26, 2024.

This relief extends the deadline for filing various federal tax returns and making tax payments to October 15, 2024.

Covered disaster area

Following a disaster declaration by the Federal Emergency Management Agency (FEMA), the IRS provides tax relief to taxpayers in Clarke, Harrison, Mills, Polk, Pottawattamie, Ringgold, Shelby, and Union counties.

This relief includes extended deadlines for filing and payment.

Affected taxpayers

Taxpayers eligible for relief include:

  • Individuals who live in the disaster area.
  • Businesses, including tax-exempt organizations, with principal operations in the disaster area.
  • Taxpayers whose records necessary to meet a deadline are in the disaster area.
  • Relief workers assisting in the disaster area.
  • Individuals visiting the disaster area who were killed or injured by the disaster.

Extended deadlines and eligible returns

New deadlines

Affected taxpayers now have until October 15, 2024, to file various returns and make tax payments, including:

  • Individual, corporate, and estate and trust income tax returns.
  • Partnership and S corporation returns.
  • Estate, gift, and generation-skipping transfer tax returns.
  • Annual information returns of tax-exempt organizations.
  • Quarterly estimated tax payments originally due on June 17 and September 16, 2024.
  • Quarterly payroll and excise tax returns due on April 30 and July 31, 2024.

Penalty relief

Penalties on payroll and excise tax deposits due on or after April 26, 2024, and before May 13, 2024, will be abated if the deposits are made by May 13, 2024.

How to claim relief

The IRS will automatically apply filing and payment relief to taxpayers in the covered disaster area.

Taxpayers outside the area, but whose records are located within it, should call the IRS disaster hotline at 866-562-5227.

Tax preparers with clients outside the disaster area can use the Bulk Requests from Practitioners for Disaster Relief option on

Additional tax relief provisions

Casualty losses

Taxpayers in the disaster area can claim disaster-related casualty losses on their federal income tax return for the year the event occurred or the previous year.

Taxpayers choosing to claim losses on their 2023 return have until October 15, 2025, to make this election.

Other relief

The IRS will waive fees and expedite requests for copies of previously filed tax returns.

Affected taxpayers should put the FEMA declaration number (4779-DR) in bold letters at the top of Form 4506 or Form 4506-T.

Qualified disaster relief payments are generally excluded from gross income. This includes amounts received for necessary personal, family, living, or funeral expenses, as well as for home repairs or rehabilitation.

Retirement plan relief

Taxpayers may be eligible for special disaster distributions from retirement plans, which are not subject to the 10% early distribution tax and can be spread over three years.

They may also qualify for hardship withdrawals.

Bottom line

The IRS's tax relief measures aim to alleviate some of the financial burdens for those impacted by the severe storms and tornadoes in Iowa.

Affected taxpayers should review their eligibility and consult with tax professionals to ensure they take full advantage of the available relief.

Ines Zemelman, EA
Founder of TFX