IRS provides tax relief for taxpayers affected by severe storms and flooding in Minnesota

The IRS today announced tax relief for individuals and businesses in Minnesota affected by severe storms and flooding that began on June 16, 2024. The affected taxpayers now have until February 3, 2025, to file various individual and business tax returns and make tax payments.

According to the IRS release—IR-2024-207 (August 12, 2024)—following a disaster declaration by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in 25 counties—Blue Earth, Carver, Cass, Cook, Cottonwood, Faribault, Fillmore, Freeborn, Goodhue, Itasca, Jackson, Lake, Le Sueur, Mower, Murray, Nicollet, Nobles, Pipestone, Rice, Rock, St. Louis, Steele, Wabasha, Waseca and Watonwan counties—qualify for tax relief.

The tax relief postpones various tax filing and payment deadlines that occurred from June 16, 2024, through February 3, 2025. As a result, affected individuals and businesses will have until February 3, 2025, to file returns and pay any taxes that were originally due during this period.

This means, for example, that the February 3, 2025, deadline will now apply to:

• Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return but not payments because they were due before the storms occurred
• Quarterly estimated income tax payments normally due on June 17 and September 16, 2024, and January 15, 2025
• Quarterly payroll and excise tax returns normally due on July 31 and October 31, 2024, and January 31, 2025

In addition, penalties for failing to make payroll and excise tax deposits due on or after June 16, 2024, and before July 1, 2024, will be abated, as long as the deposits were made by July 1, 2024.

The IRS will automatically identify taxpayers located in the covered disaster area and apply the filing and payment relief. However, affected taxpayers who reside or have a business outside the covered disaster area must call the IRS disaster hotline to request this tax relief. Moreover, if any affected taxpayer receives a late filing or payment penalty notice from the IRS that falls within the postponement period, they need to contact the IRS at the number provided on the notice to have the penalty abated.