Residents and Businesses Get Until November 3, 2025, to File and Pay After Severe Weather

Updated April 21, 2025 – The Internal Revenue Service (IRS) has announced extended federal tax deadlines for all individuals and businesses in Tennessee and Arkansas impacted by the severe storms, tornadoes, and floods that began on April 2, 2025. Taxpayers across both states now have until November 3, 2025, to file their federal individual and business tax returns and make any tax payments that would typically be due between April 2 and November 3.

This widespread tax relief follows disaster declarations issued by the Federal Emergency Management Agency (FEMA) and encompasses all 95 counties within Tennessee and all 75 counties in Arkansas. The extended deadline will be automatically applied to taxpayers whose official IRS address is located within the declared disaster areas.

Key Tax Obligations Postponed:

1. Individual Income Tax Returns: Originally due April 15, 2025.
2. 2024 IRA and HSA Contributions: Deadline extended to November 3, 2025.
3. Estimated Quarterly Taxes: Payments due April 15, June 16, and September 15, 2025, are now due November 3, 2025.
4. Quarterly Payroll and Excise Tax Returns: Returns due April 30, July 31, and October 31, 2025, are now due November 3, 2025.
5. Calendar-Year Corporate and Fiduciary Tax Returns: Originally due April 15, 2025.
6. Tax-Exempt Organization Returns: Originally due May 15, 2025.

Furthermore, the IRS will waive penalties on payroll and excise tax deposits that were originally due between April 2 and April 17, 2025, provided that these deposits are made by April 17, 2025.

Claiming Losses from the Disaster

Taxpayers in the designated disaster areas have the option to claim uninsured or unreimbursed losses resulting from the severe weather events. These losses can be claimed on either their 2025 tax return (to be filed in 2026) or their 2024 tax return. Those who choose to claim the loss on their 2025 return have until October 15, 2026, to make this election. It is crucial to include the FEMA declaration number 4861-DR on all tax forms related to disaster loss claims.

Relief for Those Outside the Disaster Zones

Certain taxpayers whose IRS address isn’t within the declared disaster areas may still be eligible for tax relief under specific circumstances, including:

1. Individuals who have recently relocated to the affected counties.
2. Taxpayers whose essential financial records are located within the disaster region.
3. Relief workers who are affiliated with recognized government or nonprofit organizations assisting in the recovery efforts.

These individuals need to contact the IRS disaster hotline at (866) 562-5227 to request assistance or update their address with the agency.

Retirement Plan Support

The IRS is also providing support to individuals who participate in employer-sponsored retirement plans or IRAs. Qualified individuals may be eligible for special disaster distributions, which are exempt from the usual 10% early withdrawal penalty. Additionally, they may have the option to spread the taxable income from these distributions over a period of three years or take hardship withdrawals if their retirement plan allows for such provisions.

Tax-Free Disaster Relief Payments

Under IRS guidelines, certain qualified disaster relief payments are generally excluded from a taxpayer’s gross income. These tax-free payments can include funds received to cover:

1. Necessary personal or family living expenses.
2. Funeral costs related to the disaster.
3. Costs for repairing or replacing damaged homes and personal belongings.

For more comprehensive information on these exclusions, taxpayers can refer to IRS Publication 525.

Federal Coordination and Future Actions

The IRS emphasizes that this tax relief is part of a larger, coordinated federal response to the severe weather events. The agency also indicates that further relief measures may be announced as damage assessments continue to evolve.

Taxpayers who do not meet the specific criteria for disaster relief may still be eligible for penalty abatement based on reasonable cause. For complete details on all available support and resources, individuals are encouraged to visit DisasterAssistance.gov or the IRS’s dedicated Disaster Assistance and Emergency Relief page.

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