IRS announces tax relief for taxpayers impacted by severe storms, straight-line winds, flooding, and landslides in Kentucky; various deadlines postponed to Nov. 3

# Tax Relief for Kentucky: Affected Taxpayers Get Extended Deadlines

Updated on 3/5/2025: This news release has been updated to correct the quarterly payroll and excise tax returns due dates of April 30, July 31, and Oct. 31, 2025.

## Overview of the IRS Announcement

KY-2025-02, Feb. 24, 2025

The Internal Revenue Service (IRS) has announced critical tax relief for both individuals and businesses in Kentucky. This decision was made in response to recent severe storms, flooding, and landslides that started on February 14, 2025. Now, affected taxpayers have until November 3, 2025, to file various federal tax returns and make tax payments.

The declaration from the Federal Emergency Management Agency (FEMA) allows affected residents and business owners in the state to postpone certain tax-filing and payment deadlines. Essentially, taxpayers can breathe a sigh of relief as many important deadlines now come with extended timeframes.

## Key Tax Deadlines and Extensions

The IRS has provided clear guidelines regarding the postponed deadlines. Here’s what you need to know:

1. Affected individuals and businesses can file returns and pay taxes originally due between February 14, 2025, and November 3, 2025.

   
   

2. Specifically, the November 3, 2025, deadline applies to:

• Individual income tax returns typically due on April 15, 2025.

• 2024 contributions to IRAs and Health Savings Accounts (HSAs) for eligible taxpayers.

• Estimated tax payments originally due on April 15, June 16, and September 15, 2025.




3. For payroll and excise taxes, penalties on deposits due on or after February 14, 2025, until March 3, 2025, will be waived, provided that deposits are made by March 3, 2025.

   
   

4. Business-related deadlines include:

• Quarterly payroll and excise tax returns due on April 30, July 31, and October 31, 2025.

• Calendar-year partnership and S corporation returns usually due on March 17, 2025.

• Corporate and fiduciary returns and payments due on April 15, 2025.

• Calendar-year tax-exempt organization returns due on May 15, 2025.

If an affected taxpayer receives any penalty notice from the IRS, it is crucial to call the number on the notice to discuss abating the penalty.

## Who Qualifies for Relief?

The IRS designates certain taxpayers as “affected taxpayers” eligible for extended deadlines. This group includes individuals and businesses located in the disaster area, as outlined in Treas. Reg. § 301.7508A-1. Notably, taxpayers with records in the affected area but located outside of it may also qualify for relief.

This classification also includes relief workers from recognized organizations and any individuals visiting the area who may have suffered injuries due to the disaster.

Under section 7508A, affected taxpayers can file various tax returns with a new deadline of November 3, 2025. This applies to a wide range of forms, including returns for individual incomes, corporations, partnerships, trusts, and certain employment taxes.

## Casualty Loss Deductions

Affected taxpayers can choose to claim disaster-related casualty losses either in the tax year of the event or the previous year. Each taxpayer has until six months after their federal income tax return due date to make this decision. For individuals, this means they can decide until October 15, 2026.

Individuals can deduct personal property losses that insurance policies do not cover. For further details, you can refer to Form 4684, Casualties and Thefts and its instructions. When submitting a loss claim, ensure to include FEMA disaster declaration number 3624-EM on any return.

## Other Available Tax Relief Options

Affected taxpayers will benefit from waived fees when requesting copies of previously filed tax returns. It's important to write the FEMA declaration number (3624-EM) in bold at the top of Form 4506, Request for Copy of Tax Return or Form 4506-T, Request for Transcript of Tax Return.

Moreover, qualified disaster relief payments are typically not subject to gross income taxation. This means amounts received for living or funeral expenses, home repairs, or personal belongings can be excluded from gross income. More details can be found in Publication 525.

For those involved in retirement plans or IRAs, there may be additional relief options. Taxpayers may be eligible for special disaster distributions, allowing them to avoid the additional 10% early withdrawal tax. For comprehensive information related to this, refer to Form 8915-F, Qualified Disaster Retirement Plan Distributions and Repayments and related FAQs.

## Assistance for Tax Preparation

Taxpayers eligible for assistance can seek help from various programs, ensuring they have the necessary support during this time:

• Free tax preparation services are available through Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE). Use the VITA Locator Tool to find local help.

• Individuals with an adjusted gross income of $84,000 or less can access IRS Free File’s Guided Tax Software free of charge, available in both English and Spanish.

• Taxpayers comfortable using online tools may also opt for Free File Fillable Forms, which are electronic forms available to anyone.

  
  

• Active military members and veterans can utilize MilTax for free return preparation software and electronic filing options.

  
  

In conclusion, the IRS is committed to supporting affected taxpayers in Kentucky. With the extended deadlines and various relief options available, those facing difficulties due to the recent disasters can navigate their tax obligations more comfortably.

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