The Internal Revenue Service (IRS) has postponed until May 2025 tax refunds for taxpayers in areas affected by disasters declared in 2024, such as Hurricane Helene. The automatic extension of deadlines, applied in areas designated by FEMA, delays the processing of declarations and payments until May 1, 2025.
“The IRS provides automatic relief to taxpayers in disaster areas without the need for an application,” says the statement called “IRS: Relief for Hurricane Helene Victims.” This includes individual returns, business returns, and estimated payments, which directly affects the issuance of refunds.
Extensions of deadlines for tax refunds: Which areas benefited?
Hurricane Helene and other storms in 2024 prompted the extensions. According to the IRS, taxpayers whose records or tax preparers are in affected areas also qualify, even if they reside outside. Declarations normally due in March or April 2025 now have a deadline until May.
The entire states of Alabama, Georgia, North Carolina, and South Carolina, along with parts of Florida (41 counties), Tennessee (8 counties), and Virginia (6 counties and 1 city), are under the extension. The measure benefits residents and businesses with tax domiciles in these areas.
Although disaster extensions are the main cause, other elements could lengthen the deadlines. Paper returns, for example, take between 6 and 8 weeks to process. Errors on W-2 or 1099 forms, or credits like ACTC, require manual reviews that delay refunds.
Likewise, you have tax obligations that you should not neglect.
The extensions also impact estimated quarterly payments and returns from exempt organizations. Taxpayers in designated areas have until May 2025 to comply with these obligations. The IRS recommends electronic filing with direct deposit to speed up processes, but the extended deadline prevails for affected areas.
“Taxpayers don’t need to wait until April to file,” explained one tax expert we spoke with. However, in disaster areas, processing is postponed until after May 1, 2025, regardless of the submission method.
Eligibility for the extension depends on the tax address registered in declared disaster areas. Businesses with operations in these areas, even if their headquarters are outside, also qualify. The IRS periodically updates the list of affected counties on its Tax Relief in Disaster Situations portal.
Events like Hurricane Milton in Florida expanded the areas with extensions. Taxpayers with questions can verify their eligibility using the IRS Disaster Assistance Hotline or online tools.
The IRS notes that tools like “Where’s My Refund?” They allow you to monitor the status of refunds. However, for areas under extension, the main delay remains linked to the extended deadline. “No refunds will be issued before mid-February if ACTC is claimed,” the Tax Time Guide 2025 warns.
More disaster-declared areas with extended deadlines from the IRS
The Internal Revenue Service (IRS) announced tax relief measures for residents and businesses affected by the winter storms and flooding in Virginia, which occurred since February 10, 2025. Taxpayers in areas declared as disaster areas by FEMA will now have until November 3, 2025 to file returns and pay federal taxes.
Eligible localities include counties such as Bedford, Franklin and Montgomery, along with cities such as Bristol. The deferral applies to personal and corporate income taxes, IRA contributions, estimated payments and quarterly payroll statements. Those who received fines for delays in deadlines between February 10 and 25 may request their revocation, as long as they have complied before February 25.
For businesses, critical dates such as filings for S corporations (originally March 17) and nonprofits (May 15) are extended. The IRS will automatically identify taxpayers within the affected areas, but those residing outside of them should contact 866-562-5227 to request assistance. Tax professionals who manage massive cases can access simplified processes to streamline procedures.
Additionally, it is allowed to claim uninsured material losses in 2024 or 2025 returns. Those affected have until October 15, 2026 to decide in which fiscal year they will apply these deductions. They must include FEMA disaster code 4863-DR and use Form 4684 to detail damages. This flexibility seeks to help rebuild personal and business assets.
The relief excludes some documents, such as W-2 or 1099 forms, but maintains exemptions on penalties for late deposits of employment taxes until February 25. Rescue workers and volunteers who helped in the area may also qualify for extensions, even if their residence is not in the declared disaster area.
