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Weathering the Storm: Tax Authorities Step In to Provide Relief After Helene and Milton

On Thursday, September 26, 2024, Category 4 Hurricane Helene struck Florida's Big Bend, causing widespread flooding, significant property damage, and disabled infrastructure across Florida, Georgia, the Carolinas, Tennessee, Virginia, and Kentucky. Less than two weeks later, Category 3 Hurricane Milton made landfall in Florida on October 9, 2024, bringing torrential rainfall, severe winds, a tornado outbreak, and devastating storm surges.

Allyn International, headquartered in Fort Myers, Florida, remained fully operational following the storm, thanks to our business continuity plans, backup systems, dedicated personnel, and high-capacity generators. This allowed us to continue serving our clients without interruption the very next day. However, many individuals and businesses affected by Hurricanes Helene and Milton are still struggling; with thousands remaining without power or communication services.

The federal government along with certain state taxing authorities are responding to this disaster by providing tax relief for those affected. These reliefs vary from jurisdiction to jurisdiction but mainly pertain to income tax responsibilities to alleviate pressure on those located in the affected areas. If you are an “affected taxpayer”, you will need to be aware of which states are offering relief and for what accounts, to ensure you maintain compliance in your federal and state tax responsibilities.

The IRS definition of “affected taxpayer” is: Any individual whose principal residence or any business entity or sole proprietor whose principal place of business is located in a covered disaster area, or whose records necessary to meet a deadline are maintained in a covered disaster area; any individual visiting the covered disaster area who was killed or injured as a result of the disaster; any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered disaster area; or any other person determined by the IRS to be affected by a federally declared disaster.

Currently, the following taxing authorities are offering relief as detailed below:

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Federal - The IRS announced disaster tax relief for all individuals and businesses affected by Hurricane Helene, including the entire states of Alabama, Georgia, North Carolina and South Carolina and parts of Florida, Tennessee and Virginia. Taxpayers in these areas now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments. Among other things, this includes 2024 individual and business returns normally due during March and April 2025 and 2023 individual and corporate returns with valid extensions and quarterly estimated tax payments.

Alabama - The Alabama Department of Revenue (DOR) is offering tax filing and penalty relief, on a case-by-case basis, to Alabama taxpayers who reside or have a business in federally declared disaster areas and who may be unable to timely file tax returns as a result of damage or disruptions caused by Hurricane Helene. In addition, taxpayers in areas not specifically designated as disaster areas who encounter difficulty filing on time due to weather-related circumstances associated with Hurricane Helene may be eligible to request a waiver of late-filing and late-payment penalties after providing appropriate documentation to ALDOR.

Colorado - The Colorado Department of Revenue has extended the tax filing and payment deadline to May 1, 2025, for taxpayers affected by hurricanes Helene and Milton. This applies to individuals and businesses in Florida, Alabama, Georgia, North Carolina, South Carolina, and parts of Tennessee and Virginia. Deadlines for tax filings and payments due between September 23, 2022, and February 15, 2023, are postponed through May 1, 2025, for eligible taxpayers.

Florida – The due dates for returns, reports, and payments for the September and October 2024 reporting periods have been extended to November 22, 2024, for taxpayers in 24 Florida counties. Businesses located in Charlotte, Citrus, Collier, Dixie, Franklin, Glades, Hernando, Highlands, Hillsborough, Indian River, Jefferson, Lafayette, Lee, Levy, Madison, Manatee, Orange, Pasco, Pinellas, Polk, Sarasota, St. Lucie, Taylor, and Wakulla counties now have until this date to file the September 2024 and October 2024 reporting periods for the following taxes:

Sales and use tax (including discretionary sales surtax)
Reemployment tax
Communications services tax
Documentary stamp tax (unrecorded documents)
Governmental leasehold intangible personal property tax
Gross receipts tax on utility services
Insurance premium tax
Lead-acid battery fees (solid waste and surtax)
Motor fuels taxes
Motor vehicle warranty fee
New tire fees (solid waste and surcharge)
Prepaid wireless fees
Rental car surcharge (solid waste and surcharge)
Severance tax
Tourist development tax

Electronic submissions with payments must be initiated by 5 p.m. ET on November 21, 2024, to be considered timely. The sales and use tax dealer's credit will be granted if the required report is filed electronically or by paper by November 22, 2024.

Georgia - The Department of Revenue announced that certain return and payment deadlines for taxpayers have been extended to May 1, 2025, following the aftermath of Hurricane Helene. The May 1, 2025, extension date applies to individuals and businesses that have a 2024 income tax return normally due during March or April 2025; calendar year corporations whose 2023 extensions run out on October 15, 2024; quarterly estimated income tax payments due on January 15 and April 15, 2025; and quarterly payroll tax returns normally due on October 31, 2024, January 31, 2025, and April 30, 2025. Sales and excise tax relief is available for businesses in counties under FEMA’s Disaster Declaration, including Apling, Atkinson, Bacon, and others. If additional counties receive a FEMA Disaster Declaration, then businesses in that county will also receive this tax relief.

Idaho - The Idaho State Tax Commission is extending tax filing and payment deadlines for victims of Hurricane Helene. Affected taxpayers now have until May 1, 2025, to file returns and make payments originally due during the following periods:

For victims in Alabama, the relief postpones tax deadlines that fall from September 22, 2024, through April 30, 2025.

For victims in parts of Florida, the relief postpones tax deadlines that fall from September 23, 2024, through April 30, 2025.

For victims in Georgia, the relief postpones tax deadlines that fall from September 24, 2024, through April 30, 2025.

For victims in North Carolina, South Carolina, and parts of Virginia, the relief postpones tax deadlines that fall from September 25, 2024, through April 30, 2025.

For victims in parts of Tennessee, the relief postpones tax deadlines that fall from September 26, 2024, through April 30, 2025.

Idaho is following the IRS's extended deadline, pushing the October 15, 2024, filing date for 2023 income tax returns, with an additional extension to file. However, this only extends the filing deadline, not the payment, and interest will accrue on taxes unpaid after the original due date of April 15, 2024.

The new deadline applies to all Idaho tax types, including income, sales, fuels taxes, and withholding, for individuals and businesses in disaster areas or with tax records located there.

Illinois - Governor JB Pritzker, in coordination with the Illinois Department of Revenue, has temporarily waived IFTA registration and MFUT single trip permits for qualified motor vehicles supporting interstate disaster relief efforts in response to Hurricanes Milton and Helene. For further details, please refer to the Emergency Waiver of IFTA Registration.

North Carolina - The NC Department of Revenue has issued notices about tax relief available to victims of Hurricane Helene. The notices include details about eligibility as well as contacts for questions.

South Carolina - The SCDOR is granting automatic tax relief to all South Carolina taxpayers impacted by Hurricane Helene. Returns and payments originally due between September 25, 2024, and May 1, 2025, are now extended to May 1, 2025. This applies to all 46 counties and aligns with IRS relief efforts. No action is required from taxpayers.

The following returns and payments are now due May 1, 2025:

2023 income tax returns from individuals, businesses, and tax-exempt organizations with valid filing extensions. However, since payments for 2023 individual income taxes were due on April 15, 2024, this relief does not apply to those payments.
2024 Income Tax returns from individuals, businesses, and tax-exempt organizations, including Business Income Tax returns originally due March 15, 2025, and Individual Income Tax returns and payments originally due April 15, 2025.
Quarterly Estimated Income Tax payments originally due on December 16, 2024, January 15, 2025, and April 15, 2025.
Quarterly Withholding Tax returns originally due on October 31, 2024, January 31, 2025, and April 30, 2025.

Deadlines extended to February 3, 2025, under Hurricane Debby relief, are now further extended to May 1, 2025. This relief does not apply to other state taxes.

Tennessee - Tennessee Gov. Bill Lee and the Department of Revenue have announced four tax relief measures for businesses and individuals affected by Hurricane Helene. Following the IRS’s decision to extend federal due dates for those businesses affected by Hurricane Helene, franchise and excise tax filing and payment deadlines for those in designated disaster areas have been extended to May 1, 2025, for taxpayers in Carter, Cocke, Greene, Hamblen, Hawkins, Johnson, Unicoi, and Washington counties. Franchise tax Schedule G refund deadlines are also extended to May 1.

Tennessee residents whose primary residence was damaged or destroyed by Hurricane Helene may apply for a sales tax refund of up to $2,500 on major appliances, residential furniture, or building supplies. Only one claim is allowed per residence. For more details, visit the Department of Revenue’s website.

The department will also approve, on a case-by-case basis, tax extension requests from affected taxpayers for other taxes. Affected businesses should email requests to Revenue.DisasterExtension@tn.gov and include the business name, entity ID or Tennessee account number, business location, and a brief description of the impact. Additional information can be found in this important notice.

Virginia - Virginia will provide extensions and waivers for penalties and interest for individuals and fiduciary taxpayers affected by Hurricane Helene. This relief is available to taxpayers in designated disaster areas listed on FEMA's website, regardless of eligibility for Individual or Public Assistance. Additional localities declared as disaster areas will also qualify for relief. Taxpayers do not need to take action; extensions and waivers are automatic if returns and payments are made by June 1, 2025. For other Virginia state taxes, impacted taxpayers experiencing hardship due to Hurricane Helene can request waivers by sending a written request to:

Virginia Department of Taxation
Customer Service Section Severe Storm Relief
P.O. Box 1115
Richmond, VA 23218-1115

For information on a specific jurisdiction, please feel free to contact tax@allynintl.com.

Tips for the Taxpayer

If you or your business have been affected by natural disaster, stay up to date with the news updates issued by taxing authorities in jurisdictions where you do business. Extensions and waivers can often be numerous and extensive in what they cover.

How Can We Help?

Allyn International offers tax services for companies throughout the US and Canada and has business continuity plans in place to circumvent impediments from natural disasters. Allyn’s team of seasoned tax professionals completed every tax return and payment due within the scope of potential delays due to Hurricane Helene and Milton prior to the storm’s impact. Despite our US headquarters being in the storm’s affected path, Allyn was open and fully operational within hours of the storm’s passing. We can help your business maintain compliance with federal and state tax responsibilities and put procedures in place to ensure future disasters do not affect your tax operations.

Allyn’s tax team is experienced in all aspects of Federal, state, and local tax compliance and consulting for large U.S. and global corporations. We use that experience to your advantage.

Allyn files state and local sales and use, property, and license tax returns in every US taxing jurisdiction in addition to excise tax filings such as Federal Excise Tax, Heavy Highway Vehicle Use Tax, and International Fuel Tax Agreement returns. We can manage your tax compliance, create a solid tax process, and provide audit defense for your company.

Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact tax@allynintl.com.

For More Information

If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News and Publications at www.allynintl.com.

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe, and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.