IRS Grants Major Tax Relief for Disaster-Hit States | Image Source: www.cbsnews.com
RALEIGH, North Carolina, April 14, 2025 – In a significant movement that recognizes the number of recent natural disasters, the Internal Tax Service (IRS) has extended federal tax delays for residents and businesses in many states, including North Carolina. With this extension, taxpayers in the state of Tar Heel now have until September 25, 2025, to submit their 2024 federal declarations and make related payments, a decision that could provide a crucial space to breathe for those who are still distracted from the impact of Hurricane Helene.
Why did the IRS extend tax delays in North Carolina?
This expansion stems from the devastating effects of Hurricane Helene, which has resulted in a federal designation of disasters in dozens of North Carolina counties. In accordance with its disaster relief policy, the IRS automatically grants archival and payment extensions to all contributors with registered addresses in designated areas. According to the IRS IR-2025-48 announcement, no additional measures from affected individuals or businesses are required to benefit from this relief.
This means that the traditional deadline of 15 April has been extended by five months. And it is not just individual returns that are eligible: corporations, tax-free organizations and those that have many 2023 submissions are included. According to the IRS, this effort is aimed at reducing the stress of communities already struggling with recovery, by ensuring that tax compliance does not become an additional burden.
What covers the new limit?
The revised deadline of 25 September 2025 covers a wide range of tax obligations, including:
- Individual income tax returns and payments typically due April 15, 2025.
- 2024 IRA and health savings account contributions.
- Quarterly estimated tax payments due January 15, 2025, as well as April 15, June 16, and September 15, 2025.
- Payroll and excise tax returns due on October 31, 2024; January 31, April 30, and July 31, 2025.
- Corporation and fiduciary returns normally due April 15, 2025.
- Tax-exempt organization returns due May 15, 2025.
- 2023 filings with valid extensions (Forms 990, 1040, 1041, and 1120).
It is important that this adjustment be implemented automatically. North Carolina taxpayers do not need to contact the IRS or submit additional documents to qualify. However, those who need time beyond the new deadline should submit an additional extension.
How does this align with the tax policy of the State of North Carolina?
In collaboration with the IRS, the North Carolina Revenue Department (NCDOR) offers its own version of grace. Taxpayers avoid late fines if they submit and pay state taxes before May 1, 2025. However, interest on outstanding balances begins to accrue on April 16, unless the taxpayer resides in one of the 39 counties in the West or is part of the Cherokee Indian Band, which is covered by the same state of disaster. These specific groups will not be interested until 2 May 2025.
As stated by a NCDOR spokesperson, this policy of interest is designed to be fair, while encouraging timely payments. It reflects a prudent balance between the relief of taxpayers and the maintenance of government revenue flows.
Who received federal tax relief in 2025?
North Carolina isn’t alone. In total, residents of 13 states are eligible for similar federal tax extensions this year due to various natural disasters:
- Until May 1, 2025: Alabama, Florida, Georgia, North Carolina, South Carolina, Alaska (Juneau), and New Mexico (Chaves County).
- Until October 15, 2025: California (Los Angeles County) due to January wildfires.
- Until November 3, 2025: Arkansas, Kentucky, Tennessee, and parts of West Virginia.
This trend reflects the broader IRS disaster relief policy, which automatically provides extensions to any taxpayer with a registered address in a declared federal disaster relief area. According to the IRS, this automatic rescue mechanism aims to minimize disruptions and remove bureaucratic obstacles during recovery periods.
What if I don’t live in a disaster zone?
Those outside designated areas may still request an extension, but only to deposit, not to pay. According to the IRS, the deadline for applying for a standard extension is still April 15, 2025. The presentation of an extension gives people until October 15 to present their returns. However, payments must be made on the original date to avoid penalties and interest.
There are three main ways to request this extension:
- Using IRS Free File, available to all individuals at no cost, regardless of income.
- Making a payment through IRS Direct Pay and selecting “extension” as the reason.
- Submitting Form 4868 online or by mail, estimating tax liability and paying the balance.
It is important to note that military personnel serving outside the United States and in combat zones receive automatic extensions, often beyond the normal six-month period. American citizens living abroad are also entitled to an automatic two-month extension, although payments are still due before April 15.
What should taxpayers do in North Carolina?
Although the September deadline may seem distant, waiting until the last minute can lead to avoidable errors, especially in a year with so many moving parts. According to experts, the best approach is to start organizing documents and planning now, especially for business owners, freelancers, and anyone who manages complex deductions or credits.
For low- and moderate-income households, as well as for the elderly, free assistance is provided through voluntary income tax assistance (VITA) and tax advice programs for the elderly (TCE). Interested taxpayers can call 800-906-9887 or use the VITA IRS locator to find help centres nearby.
As financial advisors say, proactive taxpayers are more likely to maximize repayments or minimize obligations. And in a year when every dollar counts, it can make a big difference.
How do these changes affect repayment times?
A natural question: Does a delay in submission mean that you will receive your refund later? The answer is yes. The IRS usually issues most refunds within 21 days of receipt of a return. So the more you wait to drop off, the more you wait for them to pay you. For taxpayers who expect a refund, there are no late benefits unless absolutely necessary.
Tax experts also advise electronically by filing returns and opting for direct deposit. These options not only speed up processing, but also reduce the risk of errors and paperwork. Over the years affected by natural disasters, rapidity and security become particularly important for families already facing financial tensions.
What is the long-term perspective of disaster tax relief?
As extreme weather events become more frequent and widespread, fiscal policy changes. According to policy analysts, the use of IRS for automatic disaster relief could become a permanent feature in future budget schedules. Although these changes have arisen from difficulties, they also highlight the flexibility of the tax system in times of crisis.
However, the increasing number of extensions also creates complexity for both taxpayers and IRS systems, which have to meet varying deadlines in states, counties and categories of archivists. Tax professionals are planning more tools and digital resources in the future to help taxpayers navigate these changes effectively.
For now, the message is clear: pay attention to where you live and the time limits that apply to you. It no longer exists in the presentation of taxes. Knowing the state of your region could mean the difference between mental peace and a criminalization notice.
According to the IRS and state announcements, tax enforcement remains a personal responsibility, including in disaster areas. But when the system offers grace, it is worth understanding how to use it wisely.
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