Tax Relief Announced for Tennessee Storm Victims

Tax Relief Announced for Tennessee Storm Victims — What You Need to Know

If you live or run a business in Tennessee, the IRS just released some important news that could give you a break on your taxes.

Due to the severe storms, straight-line winds, tornadoes, and flooding that hit the state starting April 2, 2025, the IRS is offering tax relief to individuals and businesses across all 95 counties in Tennessee. Here’s what that means for you.

 

If you were affected by the recent natural disasters, you now have until November 3, 2025, to file federal tax returns and make payments that were originally due between April 2 and November 3, 2025. This includes:

• 2024 individual income tax returns and payments (normally due April 15, 2025)
• 2024 IRA and HSA contributions
• Quarterly estimated tax payments due April 15, June 16, and Sept. 15, 2025
• Quarterly payroll and excise tax returns due April 30, July 31, and Oct. 31, 2025
• Calendar-year corporate, fiduciary, and tax-exempt organization returns due in April and May

If you had payroll or excise tax deposits due between April 2 and April 17, 2025, you won’t be hit with penalties as long as the deposits are made by April 17.

 

The IRS is automatically applying this relief to anyone with a tax address in the affected disaster areas. No need to call or file special forms.

However, if you recently moved to Tennessee or your address on file isn’t in the disaster zone, and you get a penalty notice, call the IRS Disaster Hotline at 866-562-5227 to request relief.

 

Even if you live outside the disaster area but can’t access necessary records because they’re in Tennessee—or you’re a relief worker helping out—you may still be eligible. Just call the IRS number above to explain your situation.

 

If you suffered uninsured or unreimbursed losses due to the storms, you can claim those on your 2025 return (filed next year) or choose to amend your 2024 return. Just be sure to write FEMA Declaration Number 3625-EM on any return claiming a disaster loss.

 

Some payments received for disaster-related expenses (like home repairs, temporary housing, or funerals) may not be taxable. Also, if you take money from your retirement plan due to hardship caused by the disaster, you may avoid the 10% early withdrawal penalty and spread the income over 3 years.

 

This relief is part of a coordinated federal response and may expand in the coming months. For the most current information:

• Visit IRS Tax Relief in Disaster Situations
• Learn about disaster assistance at DisasterAssistance.gov

Need Help Navigating Tax Relief?
If you’re unsure how this affects your filing or want help amending a return to claim a disaster loss, don’t hesitate to reach out to RBA Accounting Service and we can help!

 

 

https://www.irs.gov/newsroom/irs-all-of-tennessee-qualifies-for-disaster-tax-relief-various-deadlines-postponed-to-nov-3