Automatic Tax Extensions for Disaster Victims

The IRS acknowledges the hardships faced by those impacted by federally declared disasters. Victims in designated regions are granted an automatic extension to file their tax returns, affording them additional time to manage their financial obligations without the pressure of looming deadlines.

For example, individuals in areas affected by hurricanes Helene and Milton, along with those in parts of Alabama, Florida, Georgia, and several other states, have until May 1 to file their returns. Filers can also request further extensions until October 15, but must be mindful that interest will accrue on any unpaid taxes after the initial deadline.

Documenting Losses for Tax Deductions

After a disaster, taxpayers may deduct losses resulting from damage to personal property, vehicles, or small business interruptions. The IRS facilitates this process through “casualty loss” deductions, which are applicable for losses not covered by insurance.

“When assessing a loss, it typically involves damage to personal items or property such as homes and vehicles,” explains Alison Flores, a manager at H&R Block’s Tax Institute. “The first step is usually to file insurance claims for covered losses.”

Taxpayers can report casualty losses either in the year they occurred or in the prior year by amending their returns. This tax relief can help ease the financial burden during recovery.

Essential Steps for Filing

To simplify the deduction process, the IRS recommends several actions:

• Photograph damaged items and property to substantiate losses.
• Maintain receipts for any expenses related to property repair.
• Document the original value of affected items, including homes and vehicles.

Timely filing of insurance claims is critical, as any reimbursements received must be deducted from taxable losses reported to the IRS.

Be Aware of Scams

During the recovery process, it’s essential to remain alert to potential scams. Victims of disasters often receive unsolicited offers for tax assistance or recovery aid, which can be fraudulent.

“Taxpayers should be cautious of any unexpected communications from individuals claiming to be with the IRS or relief agencies,” warns Misty Erickson, a tax content program manager at the National Association of Tax Professionals. “The IRS will never initiate contact via email or social media.”

Common warning signs of scams include:

• Promises of unusually high tax refunds.
• Demands for immediate payment through intimidation or threats.
• Links to websites that are not official IRS channels.

Always verify the authenticity of any tax-related communications using official IRS contact numbers.