IRS Relief in the Wake of Hurricane Helene

Just when you think you’ve seen it all, Hurricane Helene comes barreling through, leaving a trail of disruption across the Southeast. The IRS has stepped in with timely relief for individuals and businesses across Alabama, Georgia, North Carolina, South Carolina, and parts of Florida, Tennessee, and Virginia. If your clients are located in these areas, they’ll be getting much-needed extensions and penalty waivers on their tax obligations. 

But let’s get into the nitty-gritty: dyed diesel fuel—you know, the stuff usually reserved for farmers and local governments—is now being temporarily allowed on highways in affected areas. This is pretty unusual, as dyed diesel typically dodges the 24.4 cents-per-gallon federal tax. But don’t get too excited—if you’re cruising down I-95 in a diesel-powered rig, you’ll still need to pay the tax on that fuel during this relief period. 

Why the change? It’s all part of the federal government’s response to the fuel supply disruptions caused by Hurricane Helene. So, from September 26 to October 15, 2024, Alabama, Georgia, North Carolina, and South Carolina, along with specific counties in Florida, Tennessee, and Virginia, will be tax-penalty-free zones for dyed diesel fuel used on highways. Yep, you heard that right—no penalties, but taxes will still apply. 

Disaster Tax Relief for All 

Beyond the diesel dilemma, tax deadlines for individuals and businesses in these areas have been extended until May 1, 2025. That’s a huge breather, especially for those knee-deep in recovery efforts. This extension covers a whole range of filings, including 2024 individual and business tax returns, quarterly estimated tax payments, and even those 2023 returns with valid extensions that were originally due in March and April 2025. 

What’s more, this relief isn’t just limited to the Southern states. The IRS is keeping a close eye on other disaster zones, and as more areas are declared by FEMA, relief will extend to them as well. So if you’re in a storm-ravaged area, stay tuned to the IRS’s Tax Relief in Disaster Situations page to see if you’re eligible. 

Which Areas Qualify for IRS Relief, You Ask?

If you or your client live or operate a business in one of the following states or counties, congratulations—you’re in the relief zone: 

• Alabama, Georgia, North Carolina, South Carolina (entire states) 
• Florida: 41 counties including Alachua, Bay, Hillsborough, and Monroe 
• Tennessee: 8 counties including Carter, Cocke, and Greene 
• Virginia: 6 counties and the city of Galax 

If your records are stuck in a disaster zone, or you’re a relief worker, there’s good news for you, too. The IRS will extend relief to anyone whose ability to file or pay taxes is hampered by the hurricane, even if they don’t live in the affected area. Just give the IRS a call at 866-562-5227. 

Tax Prep Options Are Still in Play 

Got your mind on your taxes despite the hurricane? No sweat. The IRS has plenty of options for free tax help. For instance, if your adjusted gross income (AGI) was $79,000 or less in 2023, you’re eligible for IRS Free File. And for military members or veterans, there’s MilTax, offering free federal and state tax prep services. 

Looking to do your taxes the old-school way? You can always use Free File Fillable Forms—essentially electronic versions of your trusty paper forms. 

Uninsured Losses? No Problem. 

If you’ve suffered property damage and didn’t have insurance (or your insurance didn’t cover everything), you can claim these losses on your 2024 tax return—or even go back and amend your 2023 return. Just make sure to write down the FEMA declaration number when you file. Pro tip: You’ve got until October 15, 2025, to claim these losses. That’s a silver lining, right? 

And for those dipping into their retirement savings to make ends meet, there’s more relief. Special disaster distributions are available, allowing withdrawals without the usual 10% penalty. Plus, you can spread that income over three years to soften the tax hit. 

To Wrap It Up... 

It’s clear that the IRS isn’t pulling any punches when it comes to helping people and businesses bounce back from Hurricane Helene. Whether it’s giving tax filers extra time, waiving penalties, or letting dyed diesel fuel rule the highways, the IRS is committed to providing flexibility in a tough situation. So if you’re affected, take advantage of the relief and give yourself one less thing to worry about as you rebuild. Stay tuned for more such updates!