Overview

When the President or FEMA declares a disaster (or the IRS issues a disaster notice), the IRS commonly announces tax relief for affected areas. That relief typically includes extended filing and payment deadlines, suspension or abatement of penalties, and guidance on casualty-loss treatment and other tax issues (see IRS disaster guidance). These measures aim to give individuals and businesses breathing room to recover without immediate tax penalties (IRS newsroom).

Types of IRS Penalty Relief

  • Automatic disaster relief: For many federally declared disasters the IRS issues an automatic extension for filing returns, paying taxes, and making estimated payments for taxpayers in affected ZIP codes. The IRS announcement will state the new due date and which tax activities are covered (IRS — Tax Relief in Disaster Situations).

  • Reasonable-cause penalty abatement: If relief is not automatic, you can request abatement by showing reasonable cause, such as being personally injured, displaced, losing records, or otherwise prevented from meeting tax obligations. Examples of reasonable cause include hospitalization, significant property damage, or evacuation orders.

  • First-time penalty abatement (FTA): Taxpayers with a clean compliance history may qualify for FTA for certain penalties (late filing, late payment) even if a specific disaster relief announcement was not issued. This is an administrative relief option the IRS applies on a case-by-case basis.

How to Request Relief

  1. Check IRS announcements: Start at the IRS disaster-relief page and recent newsroom releases to see whether your area is covered and whether the relief is automatic (IRS — Tax Relief in Disaster Situations).

  2. Follow the filing/payment instructions in the announcement: If the relief is automatic, no special form is required — use the extended date published in the IRS release.

  3. If relief is not automatic or you missed a covered deadline:

  • Call the IRS or respond to the notice you received. Often a phone call to the number on the IRS notice or 800-829-1040 (individuals) starts the process. You can also request abatement in writing.
  • Provide documentation that shows how the disaster affected your ability to meet tax obligations (insurance claims, FEMA declaration, photos of damage, evacuation orders, repair estimates, medical records, or utility shut-off notices).
  1. Consider formal forms when applicable: In some cases taxpayers use forms such as Form 843 (Claim for Refund and Request for Abatement) or follow instructions on the IRS notice. Check the latest IRS guidance or consult a tax professional before filing any form.

Documentation the IRS Finds Helpful

  • FEMA or state disaster declaration identifying affected counties/ZIP codes (https://www.fema.gov)
  • Insurance claims and settlement letters
  • Repair estimates, contractor invoices, or receipts
  • Photos and dated evidence of damage or displacement
  • Bank or payroll records showing disruption to income or transactions
  • Correspondence with the IRS (copies of notices, dates you called, names of IRS reps)

Real-world notes from practice

In my 15 years advising clients, automatic relief often reduces stress quickly for most taxpayers in declared disaster areas. Where relief wasn’t automatic, well-organized documentation and an early call to the IRS frequently lead to successful abatements. Documenting dates (evacuation, hospital stays, loss settlement) is the single best predictor of a positive outcome.

Common mistakes

  • Assuming all relief is automatic: Some tax activities (certain information returns, payroll deposits, or state filings) may not be covered; always read the IRS announcement carefully.
  • Waiting too long to ask: If you miss the extended date or were unaware of the relief, request abatement promptly and assemble documentation.
  • Lacking supporting records: Vague or unsigned statements rarely persuade the IRS — provide concrete, dated evidence.

Examples

  • Large hurricane or wildfire events: The IRS historically extended individual and business filing and payment deadlines for months in many counties and allowed relief for estimated tax payments and payroll deposits (see IRS disaster announcements).
  • Localized flooding: If your county was included in the IRS notice, the extension and penalty relief typically applied automatically to returns and payments with specific new due dates.

Related finhelp.io resources

Quick action checklist

  • Verify whether your location is on the IRS disaster list (IRS newsroom).
  • Note the new filing/payment due date and follow it.
  • Gather FEMA declarations, insurance claims, receipts, photos, and communications.
  • Call the IRS or respond to any IRS notices promptly if you missed a deadline.
  • Consult a tax professional when large balances, business payroll, or complex casualty-loss claims are involved.

Authoritative sources

Professional disclaimer

This article provides general information and examples based on IRS practice through 2025 and my professional experience. It is not legal or tax advice. For advice specific to your circumstances, consult a qualified tax professional or contact the IRS directly.