IRS Disaster Relief 2025: Extended Deadlines and Key Provisions Every CPA Must Know

Natural disasters continue to disrupt communities across the United States, and as recovery efforts unfold, one thing becomes increasingly clear—timely IRS relief is playing a critical role in easing the burden for affected taxpayers. 

Whether it’s storm damage in the Southeast, floods in the Midwest, or wildfires in the West, the IRS has implemented expanded tax relief programs that offer more than just deadline extensions. For CPAs and accounting firms, this opens the door to more strategic client advisory opportunities—from helping taxpayers claim losses to avoiding penalties and accessing retirement fund relief. 

This comprehensive blog outlines every major IRS disaster-related update for 2025, breaking it down state by state, with deadline changes, covered tax obligations, penalty waivers, and special provisions that may significantly impact your clients’ tax positions. 

Why this matters to you and your clients

For accounting firms, these changes present more than regulatory adjustments—they’re a powerful opportunity to step into the role of strategic advisor. By understanding and applying these provisions state-by-state, you can: 

• Help clients maximize loss deductions and refunds 

• Avoid unnecessary penalties and interest 

• Support access to retirement funds for urgent needs 

• Guide multi-state clients with tailored, localized insight 

• Reinforce your firm’s value as a trusted advisor during crisis 

2025 IRS disaster relief roundup: A state-by-state deep dive

1. North Carolina storm victims

New IRS deadline: September 25, 2025 

Applies to: FEMA-declared disaster zones in North Carolina 

The IRS has granted a wide range of relief to North Carolina residents and businesses impacted by recent storms. This includes much-needed extensions and penalty waivers that offer breathing room during recovery. 

What’s covered: 

a. Filing and payment extensions: 

• Individual and business tax returns 

• 2024 Q3 estimated tax payments 

• Payroll and excise tax deposits 

• IRA and HSA contributions  

b. Penalty relief: 

• Waiver for penalties on payroll and excise deposits, if made by September 25 

c. Casualty loss provisions: 

• Disaster-related losses can be claimed on either the 2023 or 2024 tax return, giving clients flexibility in optimizing their tax position 

d. Retirement plan relief: 

• Special disaster-related retirement plan distributions may be available  

Check details here: IRS further postpones various tax deadlines to Sept. 25 for North Carolina storm victims | Internal Revenue Service 

2. Tennessee storm-affected taxpayers

New IRS deadline: November 3, 2025 

Applies to: All FEMA-declared areas in Tennessee 

Tennessee residents impacted by widespread storms now have several months of breathing room to meet critical tax deadlines. 

Key provisions: 

a. Included filings: 

• 2025 Q1 & Q2 estimated payments 

• Individual and business tax returns 

• Payroll and excise tax deposits 

b. Penalty waiver: 

• Late deposit penalties waived if payments are made on or before November 3 

c. Loss claims: 

• Taxpayers can choose to report storm-related losses on their 2024 or 2025 returns, depending on which year provides the most tax benefit 

d. Retirement distribution relief: 

• Special provisions apply for qualified retirement distributions due to the disaster 

Check details here: IRS: All of Tennessee qualifies for disaster tax relief; various deadlines postponed to Nov. 3 | Internal Revenue Service 

3. Arkansas storm and flood relief

New IRS deadline: November 3, 2025 

Applies to: All FEMA-declared disaster zones in Arkansas 

Taxpayers in Arkansas affected by storm and flood damage now qualify for comprehensive IRS relief—automatic in most cases. 

What’s covered: 

a. Filing extensions include: 

• 2025 Q2 & Q3 estimated payments 

• Individual and business tax returns 

• Payroll & excise tax returns 

• 2024 IRA & HSA contributions 

b. Penalty relief: 

• Late deposits made by April 17, 2025, qualify for penalty waivers 

c. Casualty loss claim flexibility: 

• Losses may be reported on the 2024 or 2025 return, depending on when it’s most advantageous for the client 

d. Disaster distribution relief: 

• Special retirement withdrawal provisions apply without early withdrawal penalties 

Check details here- IRS: All of Arkansas qualifies for disaster tax relief; various deadlines postponed to Nov. 3 | Internal Revenue Service 

4. West Virginia counties affected by disaster

New IRS deadline: November 3, 2025 

Counties covered: Greenbrier, Lincoln, Logan, McDowell, Mercer, Mingo, Monroe, Summers, Wayne, and Wyoming 

For individuals and businesses in the affected West Virginia counties, the IRS is offering automatic disaster relief provisions without the need for special requests. 

Relief summary: 

a. Automatic coverage: No action required unless address updates are needed 

b. Penalty relief: No penalties on payroll/excise deposits made by March 3, 2025 

c. Loss claims: Taxpayers can claim uninsured or unreimbursed losses for either 2024 or 2025 tax returns (FEMA declaration #4861-DR). 

d. Retirement relief: Early withdrawal penalty is waived for qualified disaster distributions 

Check details here- IRS: West Virginia storm victims qualify for tax relief; various deadlines postponed to Nov. 3 | Internal Revenue Service 

5. Kentucky storm and flood victims

New IRS deadline: November 3, 2025 

Applies: Statewide 

Following extreme weather events, Kentucky has received a statewide IRS disaster relief designation. 

Relief inclusions: 

a. Loss claims: Casualty losses can be claimed on 2024 or 2025 returns 

b. Retirement plan distributions: Special waivers available for early distributions due to disaster hardship 

c. Automatic IRS relief: Taxpayers need not take additional action if their IRS address is within the declared disaster zone 

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

6. California wildfire victims tax relief

New IRS deadline: November 15, 2025 

Applies to: Individuals and businesses affected by FEMA-declared wildfires 

California’s wildfire victims are eligible for a wide range of relief aimed at both individuals and business entities. 

Scope of relief: 

a. Covers: 

• Individual and business income tax returns 

• Estimated tax payments 

• Payroll and excise filings 

b. Casualty losses: 

• Uninsured damages may be deducted, with flexibility in timing 

c. Penalty waiver: 

• Late filing/payment penalties waived if new deadlines are met 

d. Wildfire relief payments: 

• Qualified payments to wildfire victims are excluded from income if not covered by insurance 

e. Retirement Plan Access: 

• Disaster-related early withdrawals allowed without the standard penalty 

Check details here- IRS announces tax relief for taxpayers impacted by wildfires in California; various deadlines postponed to Oct. 15 | Internal Revenue Service 

Other key national IRS disaster deadlines

7. May 1, 2025 – Broad IRS filing deadline for multiple states

Applies to: 

Alabama, Florida, Georgia, North Carolina, South Carolina, and other disaster-designated areas + areas in AK, NM, TN, VA 

What’s included: 

• 2024 individual and business returns 

• Q1 estimated tax payments 

• Partnership and S corp returns 

• Option to file Form 4868 for extension to October 15 

Automatic relief: Applies without the need for contact if IRS address is within a FEMA-declared zone 

Check details here- IRS reminder: Disaster victims in twelve states have automatic extensions to file and pay their 2024 taxes | Internal Revenue Service 

8. 2023 tax deadline extensions for disaster-area taxpayers 

The IRS has issued a reminder for taxpayers who received extensions to file their 2023 tax returns in disaster-affected areas.   

New deadline:  

1. February 3, 2025 

• States affected: Louisiana, Vermont, Puerto Rico, the Virgin Islands, and parts of Arizona, Connecticut, Illinois, Kentucky, Minnesota, Missouri, Montana, New York, Pennsylvania, South Dakota, Texas, and Washington. 

 2. May 1, 2025 

• States affected: Alabama, Florida, Georgia, North Carolina, South Carolina, and parts of Alaska, New Mexico, Tennessee, Virginia, and West Virginia. 

• This also applies to 2024 tax returns. 

Key details: 

 1. Disaster areas: Eligible taxpayers in these disaster-affected areas automatically receive extensions and don’t need to request additional time. 

 2. Tax payments: Payments for 2023 returns are due by the original deadlines, and the IRS will not extend the payment deadlines. 

 3. Special relief: The IRS is offering support for taxpayers whose records are located in the disaster areas, even if they live outside these regions. 

Check details here- IRS reminder to disaster area taxpayers with extensions: All or parts of 14 states, 2 territories need to file 2023 returns by Feb. 3; others have until May 1 | Internal Revenue Service 

How to verify client eligibility for IRS disaster relief

Not all taxpayers automatically qualify—eligibility is typically tied to address records within FEMA-declared disaster zones. CPAs should verify: 

• Client address on IRS file matches a FEMA-declared county 

• Business operational location (for business clients) 

• Record-keeping or tax documentation housed in affected areas (even if the taxpayer resides elsewhere) 

Pro tip: Use the IRS Disaster Relief Lookup Tool or FEMA Disaster Declarations page to confirm current eligibility per ZIP code. 

Strategic planning tips: Maximizing casualty loss deductions

Help clients optimize their financial recovery by strategically timing their casualty loss deductions. Since the IRS allows losses to be claimed on the current or prior year’s return: 

• Compare both years’ income to determine which year yields the greater tax benefit 

• Remember: Uninsured and unreimbursed losses only qualify 

• Ensure losses exceed the $100 per event and 10% of AGI thresholds 

Example: A client with lower income in 2024 may benefit more by claiming their 2025 storm losses on their 2024 return. 

Final Thoughts: More than compliance—This is a client care opportunity

The updates summarized above are not just regulatory changes—they’re trust-building moments. In times of disruption and uncertainty, your accounting firm can step forward to provide clarity, comfort, and actionable strategies that help your clients take full advantage of the relief available to them. 

Partner with Infinity Globus—Your disaster relief tax compliance Experts 

At Infinity Globus, we empower CPA and accounting firms to stay proactive in rapidly shifting tax environments. Let us help your team: 

• Monitor IRS disaster updates in real-time 

• Navigate multi-state compliance effortlessly 

• Identify tax relief opportunities by client region 

• Deliver strategic support without straining your internal team 

Contact us today to ensure your clients remain compliant and confident in 2025 and beyond.