The IRS has just made a major deadline announcement for tax payers in Virginia who were hit hard by the severe winter storms and flooding that began on February 10, 2025.
If you’re among those affected in specific counties or cities, the good news is that you now have until November 3, 2025, to file and pay your federal taxes. This is a big relief, especially with the deadlines initially scheduled for as early as April 2025.
Let’s break it down: The Federal Emergency Management Agency (FEMA) issued a disaster declaration, and now anyone living in or running a business in certain parts of Virginia will have extended time to deal with tax filings and payments. The affected areas include counties like Amelia, Appomattox, Bedford, and many more (a total of 30+ counties are included). There are also specific cities like Bristol that qualify for this relief. So, if your business or home is located within the disaster zone, the IRS is giving you some breathing room.
What Exactly Does This Relief Mean?
Simply put, the IRS is giving you more time, until November 3, 2025, on various tax-related deadlines. This applies to individual income tax returns due on April 15, 2025, and also covers things like IRA and Health Savings Account contributions that would normally be due by that date.
Moreover, if you’re someone who needs to make estimated tax payments (you know, the quarterly payments), the IRS is pushing back those deadlines too. Normally, you’d need to pay by April 15, June 16, and September 15, 2025, but with this new relief, all of those payments are now due by November 3, 2025.
But that’s not all. This also includes payroll and excise tax deposits. So, if your business makes payroll tax deposits or handles excise taxes, the penalties that would normally apply to late payments due between February 10 and February 25, 2025, will be waived as long as the payment is made by February 25.
How Does This Affect Businesses?
Businesses that were impacted by the storm are also covered under the relief. For example, any quarterly payroll and excise tax returns due in the spring and summer (like April 30, July 31, and October 31, 2025) are also pushed back. Additionally, businesses with calendar-year tax returns (for things like S corporations, partnerships, and fiduciary returns) that would normally be due between March and May will now be due by November 3, 2025.
This is a big deal for small business owners, especially those who may have faced difficulties in completing tax-related tasks during the aftermath of the storms.
What About Penalties?
If you were already under an IRS installment agreement or payment plan, don’t worry! The IRS has confirmed that missed payments will not cause your agreement to default during this extended period. However, be aware that the usual interest and late-payment penalties will still accumulate, so while you have more time, it’s always a good idea to keep up with payments if possible.
Special Considerations: Casualty Losses and Retirement Plans
Now, here’s something to consider if you’ve experienced personal losses due to the disaster. If your property was damaged or destroyed in the storms, you can claim a casualty loss on your tax return. This is available for losses that are not covered by insurance or other reimbursements. The IRS offers flexibility here, you can claim the loss on either your 2025 tax return (the one you file next year) or on your 2024 return (filed this year). You’ve got until October 15, 2026, to make that decision, so there’s no rush.
Additionally, if you participate in a retirement plan like an IRA, you may be eligible to take advantage of disaster-related distributions. These come with certain benefits, such as being able to spread the tax burden over three years and possibly avoiding the 10% early withdrawal penalty. You can also make hardship withdrawals from your plan if needed. The IRS has laid out specific rules for this, so it’s worth checking if this could benefit you.
Relief for Those in Payment Agreements
If you’ve been in a payment agreement with the IRS, you might be wondering how this impacts your situation. The IRS is allowing taxpayers in the affected disaster zones to continue their payment plans without penalty, even if payments are missed during the relief period. As long as you settle those payments by November 3, 2025, your agreement will remain intact. But if you’re struggling, be proactive and call the IRS for more help.
Other Relief Measures
Other than extending deadlines, the IRS has also made it easier for taxpayers to request copies of their past tax returns or transcripts. Normally, there’s a fee for this, but under the disaster relief, that fee is waived for those impacted by the storm.
What’s more, disaster-related relief payments that you may receive from a government or charity are excluded from your taxable income. So, if you received a payment for things like home repairs or funeral expenses, you don’t have to worry about it impacting your taxes.
Keep in Mind: What Doesn’t Qualify
As with any relief program, there are certain things that aren’t covered. For example, the IRS does not extend deadlines for all types of tax filings. Information returns like W-2s, 1099s, and other similar forms still need to be filed on time. However, penalties for missed payroll and excise tax deposits between February 10 and February 25, 2025, will be waived if paid by February 25, 2025.
What Should You Do Next?
The IRS has made it clear that it will automatically apply these relief measures to taxpayers in the affected areas. If you live or run a business in the impacted zone, there’s no need to call or apply for this extension, it’s automatically applied. However, if you’re outside the disaster area but your records are impacted by the storm, you can contact the IRS to request this relief. If you need help navigating the IRS’s response or understanding your specific situation, don’t hesitate to call the IRS Special Services at 866-562-5227.
Also, if you were issued a late payment or late filing penalty notice, it’s a good idea to reach out to the IRS to have the penalty abated, especially if the notice covers a deadline within the postponed period.
The IRS’s decision to extend tax deadlines for people and businesses in Virginia affected by the severe winter storms and flooding is a much-needed relief. With deadlines pushed back to November 3, 2025, you have more time to file returns, make payments, and take advantage of other forms of relief, like casualty loss claims and retirement plan benefits. Be sure to keep track of these changes and consult with the IRS if you have any questions.
This relief gives everyone impacted by these storms some breathing room, so make sure you’re staying on top of your responsibilities without the added pressure of imminent deadlines.
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