In the wake of Hurricanes Helene and Milton, individuals and businesses are dealing with the aftermath. They are seeking ways to reduce financial impacts and recover. Understanding the available tax relief options is crucial. Both federal and state agencies have stepped up to offer essential guidance and support.
IRS Disaster Relief
The Internal Revenue Service (IRS) offers comprehensive tax relief to those affected by Hurricane Helene and Hurricane Milton across several states. Key measures include:
- Tax Deadline Extensions: Taxpayers in affected areas have been granted extensions for filing and payment deadlines, now postponed to May 1, 2025. This relief is available in parts or all of Georgia, South Carolina, North Carolina, Alabama, Tennessee and Florida. More details can be found on the IRS website.
- State-specific Summaries: Each state has its specific relief measures, summarized by the IRS in announcements GA-2024-08, SC-2024-08, NC-2024-08, AL-2024-05, TN-2024-01 and FL-2024-08. A summary of disaster relief from the IRS by state can be accessed here.
Local and State Tax Relief
State tax authorities have also announced tailored relief measures to address the specific needs of their residents affected by Hurricane Helene and Hurricane Milton. These measures include deadline extensions for filing state tax returns, waiving penalties and interest on late payments, and offering guidance on claiming disaster-related deductions. Each state has its unique approach, providing relief that is relevant and accessible to its citizens. By coordinating with federal efforts, these state-specific programs aim to provide comprehensive support, helping individuals and businesses recover more effectively from the disaster’s impact.
- Alabama: The Alabama Department of Revenue provides relief information here.
- Florida: Information on disaster preparedness and relief is available here.
- Georgia: The Department of Revenue has extended relief measures. Information is available here.
- North Carolina: Relief details can be found on the North Carolina Department of Revenue website.
- South Carolina: The South Carolina Department of Revenue has issued relief guidance here.
- Tennessee: Tax relief measures are detailed on the Tennessee Department of Revenue website.
- Virginia: Tax relief for victims is outlined on the Virginia Department of Taxation website.
FEMA Claims and Casualty Loss Deductions
For those hit by the recent Hurricane Helene and Hurricane Milton the Federal Emergency Management Agency (FEMA) provides essential claims assistance. Affected individuals may be eligible for casualty loss deductions, allowing them to claim disaster-related losses on their federal tax returns. Detailed information is available on FEMA's website.
SBA Disaster Loans
The Small Business Administration (SBA) offers disaster loans to assist with recovery efforts. These loans help businesses and homeowners needing financial aid to rebuild and recover from the damages caused by Hurricane Helene. The SBA provides low-interest loans to cover property damage and economic injury, helping to bridge the gap until normal operations can resume. More details on eligibility and application processes can be found on the SBA website.
Moving Forward
Navigating the aftermath of Hurricane Helene and Hurricane Milton requires a clear understanding of the available tax relief options and financial assistance programs. With comprehensive support from federal and state agencies, affected individuals and businesses can find much-needed relief. Cherry Bekaert can play a vital role in guiding clients through these complex processes, helping them maximize available benefits and streamline their recovery efforts. By leveraging knowledgeable advice and resources, those impacted can focus on rebuilding and moving forward with confidence.
How Cherry Bekaert Can Help
Cherry Bekaert offers invaluable assistance in navigating disaster relief and tax implications. Specialized teams provide tailored advice on claiming deductions, meeting new filing deadlines, and understanding state-specific tax relief measures. By partnering with Cherry Bekaert, individuals and businesses can maximize available benefits for reporting and paying their taxes and efficiently manage their financial recovery.
To explore how our Tax Credits & Incentives Advisory, State & Local Tax and Tax Services can assist you, please follow the links provided for detailed support and guidance.
Cherry Bekaert’s Forensic and Dispute Advisory team offers critical support in the aftermath of a disaster. They assist in calculating, evaluating and documenting losses for business interruption claims.
For insurance claims, our team can calculate lost profits and extra expenses from business disruptions. This includes hurricanes and other insurable events. We also help file and collect on these claims. These services extend to all aspects of FEMA claims, including property damage assessment and coverage and reimbursement determination.
The team also helps resolve disputes arising during the recovery process, whether with insurers or other parties. By using their knowledge, individuals and businesses can navigate complex legal and financial challenges and be well on their way to a smoother path to recovery.
Related Insights:
- Article: FAQ: Understanding FEMA Disaster Assistance
- Article: Get Ahead of Natural Disasters With Business Continuity Response & Disaster Recovery Plans
Disclaimer:
This guide provides general information on tax relief options available for those affected by recent hurricanes. It is intended for informational purposes only and should not be considered as legal or financial advice. Tax laws and disaster relief measures are subject to change, and it is important to consult with a qualified tax professional or legal advisor to address your specific circumstances.
To have the most current and accurate information, stay informed by regularly checking updates from the following organizations:
These organizations provide timely updates on tax relief and disaster assistance programs.
