The Internal Revenue Service (IRS) recently provided crucial disaster tax relief for individuals and businesses throughout Kentucky that were affected by severe storms, straight-line winds, flooding and landslides that impacted the state starting February 14, 2025. This relief extends various filing and payment deadlines to November 3, 2025, offering much-needed assistance to affected taxpayers.
Who Qualifies for IRS Tax Relief in Kentucky?
Following a Federal Emergency Management Agency (FEMA) disaster declaration, both individuals and businesses within Kentucky are eligible for this relief. The IRS has automatically identified taxpayers within the disaster area, and those outside the area who are affected can call the IRS Special Services at 866-562-5227 to request relief.
Key Deadlines Extended to November 3, 2025
- Individual Income Tax Returns: Due April 15, 2025, now extended
- IRA and Health Savings Account Contributions: 2024 contributions extended
- Estimated Tax Payments: Payments originally due April 15, June 16, and September 15, 2025, are now due by November 3, 2025.
- Business Tax Deadlines: Includes quarterly payroll excise tax returns, and more
Additional Relief Measures
Penalties on payroll and excise tax deposits due on or after February 14, 2025, and before March 3, 2025, will be waived if deposits are made by March 3, 2025. Affected taxpayers can also claim disaster-related casualty losses on their federal income tax returns for either the year of the disaster or the prior year.
Casualty Loss Claims and Other Benefits
Taxpayers can claim disaster-related losses on their 2025 or 2024 tax returns. Affected individuals may also request free copies of previously filed tax returns by mentioning FEMA disaster declaration number 3624-EM on Form 4506 or Form 4506-T.
Tax Relief for Retirement Plans and IRAs
Qualified disaster relief payments are excluded from gross income, allowing affected taxpayers to receive government assistance without additional tax burdens. Additional options may be available for retirement plan participants, such as special disaster distributions and hardship withdrawals.
Free Tax Preparation Assistance Available
Eligible individuals can utilize free tax preparation services through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. The IRS also offers free file options for those who meet income requirements.
Final Words on IRS Tax Relief
The IRS may offer additional relief in the future, and taxpayers contacted for collection or examination should inform the IRS of their disaster impacts for case consideration. For more resources, visit the official IRS website at IRS.gov.
This announcement underscores the IRS's commitment to supporting Kentucky residents and businesses during these challenging times. Affected taxpayers should take advantage of the extended deadlines and available resources to ensure compliance and minimize financial stress.
Let Us Be Your Guide
Cherry Bekaert's Tax Services team is dedicated to assisting Kentucky residents and businesses with navigating the complexities of IRS disaster tax relief measures in the wake of severe weather. Let us be your trusted partner in maximizing tax relief while helping maintain financial stability during these challenging times.
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