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IRS Rolls Out Tax Relief Across Tennessee and Arkansas

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15 APR 2025 / IRS UPDATES

IRS Rolls Out Tax Relief Across Tennessee and Arkansas

IRS Rolls Out Tax Relief Across Tennessee and Arkansas

When life gives you tornadoes and floods, at least the IRS gives you more time. That’s right, taxpayers across all 170 counties in Tennessee and Arkansas are getting a breather after the wild weather kicked off on April 2, 2025. If you’re managing clients in these states, the IRS just gives you a critical window to recalibrate. Thanks to a coordinated FEMA-IRS move, deadlines for federal tax filings and payments have been officially extended to November 3, 2025. Let’s unpack what that means, minus the legalese and panic.

Mark Your Calendars

Whether you're prepping 1040s, juggling corporate returns, or planning estimated tax payment reminders, here’s what’s now officially due November 3, 2025:

  • Individual income tax returns and payments (originally April 15)
  • 2024 IRA and HSA contributions
  • Estimated payments for Q2 and Q3 (April 15, June 16, Sept. 15)
  • Payroll and excise tax returns (April 30, July 31, Oct. 31)
  • Calendar-year C corps and fiduciary returns
  • Tax-exempt org filings (due May 15)
  • S Corp and partnership extensions due September 15
  • Form 5500 retirement plan filings (ERISA plans)

Also: Payroll and excise tax deposits due between April 2 and 17 get penalty abatement if made by April 17.

Pro tip: This applies under Section 7508A, so extended deadlines include all related returns mentioned in Rev. Proc. 2018-58, just not things like W-2s or 1099s. Review the exclusions carefully.

What You Need to Do (and Don’t)

If your client has an IRS address on file in any of Tennessee’s 95 or Arkansas’s 75 counties, they’re already covered, no calls are needed. But if you’ve got clients who moved post-filing, or practitioners working remotely from other states for affected businesses, you may need to call the IRS Special Services line (866-562-5227) to activate relief. Also: This relief isn’t just for locals. If your client's records were destroyed or unreachable due to the disaster, even if they live outside the zone, they’re eligible too.

Now’s the time to start prepping 4684s. Taxpayers with uninsured or unreimbursed disaster losses can elect to claim them on either their 2024 or 2025 returns. Write the FEMA number on the top of the return:

  • 3625-EM for Tennessee
  • 3627-EM for Arkansas

These losses are subject to Section 165(i), so if they want faster refunds, amending 2024 might make sense.

Retirement Relief

For clients with retirement distributions or early withdrawals tied to storm damage or economic hardship, there's additional leeway:

  • No 10% penalty on qualified disaster distributions
  • Income can be spread over 3 years
  • Hardship withdrawals may be available under plan terms

Always check plan rules. This isn’t a one-size-fits-all situation.

Final Thoughts

As a tax pro, this extension gives you a tactical advantage, but only if you act fast. Review your client base, segment those impacted, and revise workflows, communication cadences, and filing strategies accordingly. And don’t let that Nov. 3 date sneak up on you while you’re juggling Q4 prep. For full IRS guidance, see: IRS Disaster Relief. Subscribe to MYCPE ONE Insights and stay in the know on IRS relief, filing extensions, and all things tax.

Until next time…

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