Tax Relief for Victims of Hurricane Debby

The IRS has granted certain tax filing relief because of Hurricane Debby, and you may be affected.  South Carolinians whose tax returns are due on or after August 4, 2024, and before February 3, 2025, now have until February 3, 2025, to file.  The Internal Revenue Code authorizes the IRS to extend various deadlines for a period up to one year when a federally-declared disaster occurs.  After FEMA made a disaster declaration for Hurricane Debby with respect to the entire state of South Carolina, the IRS announced on August 9, 2024, that it will exercise its authority to grant tax relief to the affected taxpayers.  The IRS provides similar relief to the Hurricane Debby victims in parts of North Carolina, Georgia, and Florida.

Taxpayers will be considered to be affected by Hurricane Debby and eligible for the relief if they live or have their principal place of business anywhere in South Carolina.  Even taxpayers who do not reside or have a business in South Carolina will be entitled to relief if the records necessary for the taxpayers to meet the deadlines are located in South Carolina.

The affected taxpayers who have either an original or extended due date occurring on or after August 4, 2024, and before February 3, 2025 (the “Postponement Period”), will have until February 3, 2025, to file most tax returns including:

  • individual, corporate, and estate and trust income tax returns;
  • partnership returns, S corporation returns, and trust returns;
  • estate, gift, and generation-skipping tax returns;
  • annual information returns of tax-exempt organizations; and
  • employment and certain excise tax returns.

In addition to the filing relief, certain time-sensitive actions that are due to be performed within the Postponement Period can be delayed through February 3, 2025, including:

  • paying any income tax, estate tax, gift tax, generation-skipping transfer tax, excise tax, or employment tax;
  • filing a petition with the Tax Court, or for review of a decision rendered by the Tax Court;
  • filing a claim for credit or refund of any tax; and
  • bringing suit upon a claim for credit or refund of any tax.[1]

If the original due date precedes the Postponement Period and the extended due date (for payment, not just for filing) falls within the Postponement Period, payment within the Postponement Period will be timely and the taxpayer is eligible for relief from interest, penalties, additions to tax, or additional amounts related to the failure to pay during the Postponement Period.[2]

In general, the IRS will administer this relief by automatically identifying the affected taxpayers and applying the Postponement Period.  If you have questions about the tax relief for the victims of Hurricane Debby, we invite you to contact an attorney at Thomas, Fisher & Edwards, P.A. at (864) 232-0041.

Disclaimer:  This newsletter is for informational purposes only and is not meant to be taken as legal advice.  By reading this newsletter, you understand and agree that no information is being provided within the scope of an attorney-client relationship.  The topics covered in this newsletter are not comprehensive and should not be substituted for competent legal advice from a licensed attorney.  Thomas, Fisher & Edwards, P.A. makes no representations or warranties as to the timeliness, availability, accuracy, or completeness of any information contained in this post.

[1] Treas. Reg. § 301.7508A-1(c)(1).

[2] Treas. Reg. § 301.7508A-1(b)(3)(ii).