IRS announces flood tax relief for taxpayers impacted by severe storms in Kentucky

WASHINGTON – On Monday, the Internal Revenue Service announced tax relief for individuals and businesses in Kentucky affected by severe storms, straight-line winds, flooding and landslides that began on Feb. 14.

According to a release by the IRS, these taxpayers have until Nov. 3 to file federal individual and business tax returns and make tax payments.

Following the disaster declaration issued by the Federal Emergency Management Agency, the release states individuals and households that reside or have a business in the entire state qualify for tax relief. The declaration allows the IRS to postpone certain tax filing and tax payment deadlines for taxpayers who live in or have a business in the disaster area, the release states.

The IRS says some deadlines falling on or after Feb. 14 and before Nov. 3 are granted additional time to file.

As a result, affected individuals and businesses will have until Nov. 3 of this year to file returns and pay any taxes that were originally due during this period, according to the release.

The release also states the following:

The Nov. 3 deadline applies to individual income tax returns and payments normally due on April 15, 2025. The Nov. 3 deadline also applies to 2024 contributions to IRAs and health savings accounts for eligible taxpayers. This relief also applies to the estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025. Penalties on payroll and excise tax deposits due on or after Feb. 14, 2025, and before March 3, 2025, will be abated as long as the tax deposits are made by March 3, 2025.

The Nov. 3, 2025, deadline also applies to affected businesses, according to the IRS:

• Quarterly payroll and excise tax returns normally due on April 30, July 31, and Sept. 30, 2025.
• Calendar-year partnership and S corporation returns normally due on March 17, 2025.
• Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.
• Calendar-year tax-exempt organization returns normally due on May 15, 2025.

If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the number on the notice to have the IRS abate the penalty.

The IRS says it automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. However, affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS Special Services toll-free number at 866-562-5227 to request this tax relief.

In addition, the IRS states, “All relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.”

Taxpayers who do not qualify for disaster tax relief may qualify for reasonable cause penalty abatement. More information on this situation can be found here.