IRS Offers Tax Relief for Kerr County After Texas Storm

When the waters rose in Texas Hill Country, the government didn’t sit on its hands. Days after deadly floods swept through Kerr County, causing over 120 casualties and leaving 160+ missing, the IRS granted urgent tax relief, and Congress passed a long-awaited bill making it even easier to get future relief. The Filing Relief for Natural Disasters Act, now on President Trump’s desk, gives the IRS new authority to act faster when state governors declare emergencies, instead of waiting on federal disaster declarations. It’s a major win for taxpayers in crisis.

Here's the Lowdown

If you're living or doing business in Kerr County, you just bought yourself time, lots of it. The IRS extended tax deadlines to February 2, 2026, covering everything from quarterly estimates to payroll and excise filings. That includes:

• 2024 return extensions that were set to expire this fall
• Business and nonprofit filings due between July 2, 2025, and Feb. 1, 2026
• Estimated tax payments, including the big ones on Sept. 15, 2025, and Jan. 15, 2026

Better yet, you don’t have to apply or raise your hand. If your IRS address is in the disaster zone, this relief gets applied automatically. And if you still get a nastygram from the IRS with a penalty notice? Call the number on the letter and they'll wipe it clean.

File It Now or File It Later

Lost property? Insurance didn’t cover it? You’ve got options. Taxpayers can claim casualty losses on either their 2024 return or wait to report it on their 2025 filing, whichever gives the better break. Just mark your return with disaster number 4879-DR and the phrase “Texas Severe Storms and Flooding” to flag it for processing. Heads-up: This doesn’t cover every form; W-2s, 1099s, and employment tax deposits aren’t delayed, though penalties between July 2 and July 17, 2025, will be waived if deposits are made by July 17.

Outside Kerr? Hang Tight

Currently, this relief applies only to Kerr County, but FEMA has already expanded the disaster declaration to several other Texas counties like Burnet, Kendall, Travis, and Tom Green. More could be added, so keep checking the IRS disaster relief site if you’re in a storm-hit area, still waiting for the green light. Now’s the time to update client calendars, pause automated reminders, and brief folks on Form 4684 for losses and Form 8915-F for early IRA withdrawals. Taxpayers on payment plans? They won’t default for missed payments until Feb. 2, 2026, though interest still ticks up. Direct debits keep running unless paused manually.

Tax Relief That Doesn’t Wait on D.C.

In a rare move, Congress passed the Filing Relief for Natural Disasters Act, giving the IRS new authority to grant tax extensions based on state-level emergency declarations, no longer waiting on federal disaster status. The law also extends the minimum relief period from 60 to 120 days, helping taxpayers act fast. AICPA and CPAs nationwide had lobbied for this change for years. As Senator John Kennedy put it, “States can’t wait around for Washington to act.” This new rule puts power in local hands and gives taxpayers a break when they need it most.

Relief with Hustle

Whether it's Kerr County boots-on-the-ground support or Congress finally tossing red tape, this moment proves that tax relief doesn’t have to crawl. With deadlines extended and tools expanded, folks hit hardest to breathe, rebuild, and bounce back stronger. From IRS alerts to financial strategy tips, MYCPE ONE Insights delivers everything busy professionals need to stay informed. Subscribe today and stay ahead.