Why this matters

A disaster—hurricane, wildfire, flood, or other federal emergency—can make timely tax filing and payment impossible. The IRS routinely announces relief (extended filing and payment deadlines) for affected areas; that relief can reduce or eliminate penalties if you meet the rules (IRS: Tax Relief in Disaster Situations).

Who is eligible

  • Taxpayers in areas covered by an IRS disaster announcement or a FEMA presidential or major disaster declaration.
  • Individuals, families, and businesses with tax deadlines falling within the relief period.

Key actions to take (step-by-step)

  1. Check official relief announcements
  • Start with the IRS newsroom page above and watch for news releases that list affected counties and new deadlines. Also check FEMA or your state emergency management site for the official disaster declaration.
  1. Determine the deadline and whether it’s automatic
  • Many IRS disaster relief announcements provide automatic extensions of filing and payment deadlines for residents and businesses of the listed areas. You do not always need to apply in advance to receive the automatic extension; follow the IRS release for exact dates (IRS: Extension of Time to File).
  1. Gather and preserve proof
  • Keep documentation that links your hardship to the disaster. Useful items include: FEMA declaration or disaster number, insurance claims, photographs of damage, repair or contractor estimates, police/fire reports, evacuation orders, and medical records when applicable. Note dates and create a timeline of events.
  1. File the return (or an extension) and pay what you can
  • Even with an extension to file, interest generally accrues on unpaid tax. Paying as much as you can by the original due date reduces interest and penalties. If you cannot pay, set up an installment plan or contact the IRS for options.
  1. If a penalty posts, request relief
  • If assessed a penalty, you can request abatement citing the disaster. Explain the facts, attach supporting documents, and reference the IRS disaster relief announcement covering your area. In many cases the IRS will remove failure-to-file or failure-to-pay penalties tied to the relief period. See FinHelp’s guidance on penalty relief for disasters for practical examples and templates (see links below).

What proof the IRS expects

  • Evidence that you were in an affected area on relevant dates (FEMA/state declaration, ZIP/county listing).
  • Records showing damage or displacement (photos, insurance claims, repair invoices, rental or hotel receipts).
  • Communications or orders (evacuation, shelter status, utility outage).
  • Financial records showing inability to pay (bank statements, payroll records).

Penalties, interest, and what to expect

  • Standard IRS penalties (outside disaster relief) include the failure-to-file penalty (generally 5% of unpaid tax per month, up to 25%) and the failure-to-pay penalty (generally 0.5% per month), and interest accrues on unpaid tax. During declared disaster relief periods, the IRS often suspends penalties and interest for the affected timeframe—check the specific announcement for details.

When to involve a pro

  • Complex cases (business interruptions, payroll taxes, large balances, or trusts) benefit from a CPA or tax attorney. In my practice I’ve seen documentation and a clear timeline materially improve the success of penalty-abatement requests.

Real-world tips from practice

  • Start documenting immediately. Photographs with timestamps and copies of any temporary housing or relocation receipts help build a clear record.
  • Keep a short disaster timeline in your files (dates of loss, evacuation, insurance claims, repairs).
  • If the IRS announces relief after you filed late, you can still ask for penalty relief—show the announcement and your records.

Useful resources

When relief doesn’t arrive automatically

If your area wasn’t listed in an IRS announcement but you suffered qualifying hardship, you can still request penalty relief by explaining your circumstances and providing documentation showing reasonable cause. FinHelp’s guide on when to request penalty abatement after a disaster explains common evidence and sample language: https://finhelp.io/glossary/when-to-request-penalty-abatement-for-disaster-related-late-filing/.

Professional disclaimer

This article is educational only and does not constitute tax advice. For guidance tailored to your facts, consult a licensed CPA, enrolled agent, or tax attorney. IRS rules change periodically; verify current deadlines and relief announcements on IRS.gov.”