Severe calamities that cause widespread damage, such as large wildfires, floods, hurricanes, and earthquakes, ordinarily result in a disaster declaration by the president.

The Federal Emergency Management Agency (FEMA) lists declared disasters on its website.1

Whenever a federally declared disaster occurs, many tax rules go into effect to help the victims.

Extension of Tax Deadlines

The last thing disaster victims want to worry about is a tax deadline. Luckily, the government extends most tax deadlines when a federally declared disaster occurs.

A mandatory, automatic 60-day extension for most tax deadlines goes into effect for presidentially declared major disasters.2

Furthermore, the IRS ordinarily uses its discretionary authority to extend deadlines for up to one year when a disaster occurs.3 It announces the deadline extensions on its Tax relief in disaster situations web page.

The disaster relief extensions apply to4

taxpayers who live in a federally declared disaster area,

taxpayers whose principal place of business is in the disaster area,

other taxpayers who have records in the disaster area that are necessary to meet a federal tax deadline, and

relief workers with a recognized government or philanthropic organization helping with relief efforts in the disaster area.

The time extensions typically apply to most ... Log in to view full article.