Alaska Flooding Relief: IRS Tax Deadline Extensions and Disaster Tax Relief for 2025

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• February 21, 2025
• 6 min read

Navigating Alaska Flooding Relief: IRS Tax Measures and Support

Natural disasters can upend lives in profound ways, and the recent flooding in Alaska is a testament to the critical role of emergency management, including FEMA and public assistance, in mitigating these impacts. Beyond the immediate challenges, such events can complicate financial responsibilities, particularly concerning casualty losses and tax obligations. Recognizing these hardships, the Internal Revenue Service (IRS) has implemented measures to alleviate some of the burdens faced by affected individuals and businesses.

Key Takeaways

• Extended Tax Deadlines: The IRS has postponed various tax filing and payment deadlines to May 1, 2025, for those impacted by the Alaska floods.
• Eligibility for Relief: Residents and businesses in the City and Borough of Juneau are eligible for this tax relief.
• Scope of Relief: The extension applies to multiple tax forms and payments, including individual, corporate, and estate tax returns.

Understanding the IRS’s Disaster Tax Relief Measures

In response to the flooding that began on August 5, 2024, in Alaska, and following the disaster declaration, the IRS, in coordination with FEMA, announced flood relief in the form of tax relief for affected individuals and businesses. This relief includes the postponement of various tax filing and payment deadlines that occurred starting from August 5, 2024. Affected taxpayers now have until May 1, 2025, to file returns and pay any taxes that were originally due during this period.

Who Qualifies for This Relief?

The tax relief, including financial assistance, is available to individuals and households that reside or have a business in the City and Borough of Juneau. The IRS 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 disaster hotline at 866-562-5227 to request this tax relief.

Extended Deadlines: What You Need to Know

The May 1, 2025, deadline applies to various tax obligations, including:

• Individual Tax Returns: Individuals who had a valid extension to file their 2023 return due to run out on October 15, 2024. It’s important to note that tax payments related to these 2023 returns were due on April 15, 2024, and are not eligible for this relief.
• Business Tax Returns: Businesses with an original or extended due date, including calendar-year partnerships and S corporations whose 2023 extensions run out on September 16, 2024, and calendar-year corporations whose 2023 extensions run out on October 15, 2024.
• Estimated Tax Payments: This includes the quarterly estimated tax payments due on September 16, 2024, January 15, 2025, and April 15, 2025.
• Payroll and Excise Tax Payments: Employers and businesses will receive a postponement for payroll and excise tax returns normally due between August 5, 2024, and May 1, 2025.

The IRS automatically provides this relief to taxpayers with an address on file in the disaster-affected area, eliminating the need for individuals and businesses to contact the agency for an extension. However, taxpayers outside the designated relief area but impacted by the disaster can call the IRS disaster hotline at 866-562-5227 to request relief.

Casualty Loss Deductions: Additional Relief for Affected Taxpayers

Beyond tax deadline extensions, affected Alaskans may qualify for disaster-related tax deductions. Individuals and businesses that suffered uninsured or unreimbursed disaster-related losses may claim these losses on either their 2024 tax return (filed in 2025) or their 2023 return (filed in 2024).

Key Points About Casualty Loss Deductions

• Taxpayers can amend their 2023 tax return to claim losses sooner if beneficial.
• The IRS allows deductions for uncompensated property damage, cleanup costs, and repairs directly related to the flooding.
• When claiming losses, write “Alaska Flooding” at the top of the return to indicate eligibility.

Special Considerations for Businesses and Employers

Business owners in Alaska who have been affected by the recent flooding have access to several targeted tax relief provisions designed to ease their financial recovery. These measures, in coordination with FEMA, are not just about immediate relief but also about supporting long-term recovery and stability.

• Penalty Waivers for Late Payroll Deposits: Businesses that were unable to meet payroll tax deposit deadlines due to the disaster may qualify for penalty relief if deposits were made by August 20, 2024. This provision helps alleviate the immediate financial strain and allows businesses to focus on rebuilding and retaining their workforce.
• Tax-Favored Withdrawals from Retirement Accounts: The IRS may waive early withdrawal penalties for disaster-related distributions from retirement accounts, such as 401(k) plans and Individual Retirement Accounts (IRAs). This flexibility can provide essential liquidity for businesses needing to cover unexpected expenses or invest in recovery efforts without incurring additional financial penalties.
• Employer Tax Credits: Some employers may qualify for work opportunity tax credits if they hire displaced workers. This not only aids in the recovery of the business but also contributes to the community by providing employment opportunities to those who have been directly impacted by the flooding. By incentivizing the hiring of displaced workers, businesses can play a pivotal role in the broader economic recovery of the affected areas.

How to Access Additional Disaster Tax Relief Resources

Taxpayers seeking more details on IRS disaster relief options should visit the IRS disaster relief page. Additionally, the Federal Emergency Management Agency (FEMA) provides assistance with recovery resources at www.disasterassistance.gov.

For state-specific assistance, Alaskans can also check with the Alaska Department of Revenue for any local tax relief measures.

Frequently Asked Questions (FAQs)

Do I need to apply for the tax extension due to the Alaska flooding?

No. The IRS automatically grants extensions to those with an address in the designated disaster area. However, if you live outside the area but were affected, you must call the IRS at 866-562-5227 to request relief.

Can I claim property damage losses on my taxes?

Yes. If you suffered uninsured losses due to the flooding, you may deduct them on either your 2023 or 2024 tax return. Be sure to document losses thoroughly and write “Alaska Flooding” on your return.

What happens if I already filed my taxes but now qualify for relief?

If you made a tax payment or filed a return before knowing about the disaster relief, you may file an amended return or request a penalty abatement if applicable.

Empowering Alaskans: Steps to Financial Recovery

Alaskans affected by the flooding should take advantage of the IRS tax deadline extensions and disaster tax relief programs to ease financial burdens. If eligible, consider filing casualty loss claims and checking for state and federal aid to maximize financial recovery.

For further updates, visit the IRS’s official disaster relief page and stay informed about any additional changes to relief programs.

If you have specific questions, consulting a tax professional or Certified Public Accountant (CPA) can ensure you maximize your eligible benefits under the IRS disaster relief program.