IRS provides tax relief for taxpayers throughout Puerto Rico affected by Tropical Storm Ernesto

The IRS today announced tax relief for individuals and businesses throughout Puerto Rico affected by Tropical Storm Ernesto. 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-2024-221 (August 23, 2024)—following a disaster declaration by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in any of Puerto Rico’s 78 municipalities qualify for tax relief.

The tax relief postpones until February 3, 2025, various tax filing and payment deadlines that occurred from August 13, 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. The February 3, 2025, deadline will therefore now apply to: 

• Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return. The IRS noted, however, that payments on these returns are not eligible for the extra time because they were due last spring before the storm occurred.
• Quarterly estimated income tax payments normally due on September 16, 2024, and January 15, 2025
• Quarterly payroll and excise tax returns normally due on October 31, 2024, and January 31, 2025

In addition, penalties for failing to make payroll and excise tax deposits due on or after August 13, 2024, and before August 28, 2024, will be abated, as long as the deposits are made by August 28, 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.