On August 5, Hurricane Debby reached the coast of Florida as a Category 1 storm and subsequently weakened to the form of a post-tropical cyclone while moving towards the East Coast. Although coastal states are usually the main focus of these weather events, the inland areas of the United States also suffered severe consequences in this case.
This happened in the state of Vermont, a landlocked state, but where heavy rains and intense winds, consequences of Hurricane Debby, caused flooding and left tens of thousands of people without electricity for days.
In response to the economic vicissitudes that thousands of Vermont families were left in, the Internal Revenue Service (IRS) announced tax measures for those individuals and businesses affected by Hurricane Debby. Vermont is the fifth state to receive this type of tax assistance related to this extreme weather event, joining Florida, Georgia, North Carolina and South Carolina, states that had also received similar measures from the IRS.
Affected Taxpayers in Five States Receive Tax Help From the IRS: Vermont, the Most Recent
The IRS is extending aid to all areas designated by the Federal Emergency Management Agency (FEMA), which recently included 14 counties in the state of Vermont. In addition, it is planned that this relief will be applied to other counties and states that are subsequently included in the disaster zone, as it is evaluated over the days. The list of eligible areas can be found on the disaster tax relief page on the IRS website.
At the moment, affected taxpayers have until February 3, 2025 to file their federal tax returns, both individual and business, and make the corresponding payments.
Relief for Filing and Payment of Taxes
The tax relief allows tax filing and payment deadlines to be postponed in Vermont from August 18, 2024 to February 3, 2025. This implies that the affected individuals and companies will have until that date to file their returns and pay the taxes originally owed.
The new deadline of February 3, 2025 applies to those who have a valid extension to file their 2023 tax return, whose deadline is October 15, 2024. However, tax payments due on April 15, 2024 are not eligible for this relief, which means that more time is granted to file the return, but not to make the payment.
On the other hand, the IRS is extending the deadline for individual taxpayers to make quarterly estimated income tax payments, which are due on September 16, 2024 and January 15, 2025.
Businesses are also eligible for help, including those that are required to file quarterly payroll and excise returns on October 31, 2024 and January 31, 2025.
In addition, the penalties for not making payroll and excise tax deposits that are due between August 18 and 23, 2024, will be reduced, as long as these are made before August 23, 2024.
For more details on other tax returns, payments, and actions that qualify for tax relief during this period, it is recommended to visit the disaster assistance and emergency relief for individuals and businesses page.
How to Get Tax Relief From the IRS in the Affected States
Most taxpayers will not need to take any action to get this relief, as the IRS will automatically apply the deadline extension and penalty waiver to those with a registered address in the disaster area.
For taxpayers who have moved or whose address is not registered in the affected area, but who are eligible for assistance, they are required to contact the IRS if they receive a late filing or payment penalty notice. This will allow them to request the cancellation of the fine.
The IRS is also willing to work with any taxpayer who, even if they live outside the disaster area, has necessary records that are located within the affected area and that are required to meet a deadline during the deferral period. This includes relief workers affiliated with recognized philanthropic or government organizations, who should contact the IRS at 1-866-562-5227.