IRS Offers Tax Relief to Victims of Severe Storms and Floods in Connecticut and New York

The Internal Revenue Service (IRS) has announced tax relief for individuals and businesses in Connecticut and New York affected by severe storms and flooding that began on August 18, 2024. The affected areas, including Suffolk County, New York, and Fairfield, Litchfield, and and New Haven counties in Connecticut, are now eligible for an extension in filing various tax returns and payments until February 3, 2025.
This tax exemption applies to any area designated by the Federal Emergency Management Agency (FEMA). The IRS will provide automatic filing and penalty relief for those with an IRS address of record in disaster-affected areas. Taxpayers do not need to contact the IRS to receive this exemption.
Filing and Release of Payment
The new deadline of February 3, 2025 will apply to:
- Individuals and businesses have a valid extension to file their 2023 federal returns, even though payments were due before the hurricanes.
- Quarterly estimated tax payments are due on September 16, 2024, and January 15, 2025.
- Quarterly payments and excise tax returns due on October 31, 2024, and January 31, 2025.
In addition, penalties for failure to make the payment and deposit of the excise tax due on or after August 18, 2024, and before September 3, 2024, will be reduced as long as the payment is made by September 3, 2024.
Claiming Disaster-Related Losses
Those in federally declared disaster areas with uninsured or unpaid disaster-related losses can choose to claim them on their 2024 or 2023 federal tax returns. Taxpayers have until October 15, 2025, to make this election. For those filing a loss claim, FEMA declaration numbers 3612-EM (Connecticut) and 3613-EM (New York) must be included on the return.
More Help and Guidance
Taxpayers who live outside the disaster area but whose records are located in the affected areas, as well as workers assisting relief efforts, may qualify for this tax exemption. Those who qualify outside the area should contact the IRS at 866-562-5227. Additional assistance may be available for retirement plan coverage and other hardship withdrawals under certain plan rules.
For more information, taxpayers can visit the IRS website Publication 547 about casualties, disasters, and thefts, and Publication 525 with taxable and non-taxable income.