In response to recent devastating floods, the IRS has extended tax relief to individuals and businesses in Juneau, Alaska, allowing them extra time to meet federal tax deadlines. Those affected now have until May 1, 2025, to file federal returns and make payments that would otherwise be due sooner. Optima Tax Relief gives details on these new deadlines and who qualifies for this tax relief.  

Extended Tax Deadlines for Flood Victims 

The tax relief extends multiple filing and payment deadlines that fell between August 5, 2024, and May 1, 2025 (the postponement period). As a result, affected individuals and businesses now have until May 1, 2025, to file returns and pay taxes originally due during this time. 

For example, the new May 1, 2025, deadline applies to: 

  • Any 2024 individual or business tax returns typically due in March or April 2025. 
  • Taxpayers with valid extensions to file 2023 federal returns. However, any payments due on these returns were required last spring and aren't eligible for extra time. 
  • 2024 quarterly estimated tax payments typically due on September 16, 2024, and January 15, 2025, along with 2025 quarterly payments due on April 15, 2025. 
  • Quarterly payroll and excise tax returns normally due on October 31, 2024, January 31, 2025, and April 30, 2025. 

Additionally, penalties for missing payroll and excise tax deposits due between August 5 and August 20, 2024, will be waived if deposits were completed by August 20, 2024. 

Other Tax Relief for Flood Victims 

Individuals and businesses in a federally declared disaster area who incurred uninsured or unreimbursed losses due to the disaster can opt to claim these losses on either their 2024 return (filed next year) or their 2023 return (filed this year). Taxpayers have up to six months after the disaster year's return due date (ignoring any extensions) to make this election. For individual taxpayers, this extends to October 15, 2025. Remember to include the FEMA declaration number – 4836-DR – on any return claiming a loss.  

Qualified disaster relief payments are generally exempt from gross income. This means affected taxpayers can exclude from their gross income amounts received from a government agency for necessary personal, family, living, or funeral expenses, as well as for home repairs or replacement of personal property.  

Further relief may be available to affected taxpayers participating in retirement plans or IRAs. For example, special disaster distributions may be eligible for exclusion from the additional 10% early distribution tax and can be spread over three years. Taxpayers may also qualify for a hardship withdrawal, with specific plan rules applying to each. 

Eligibility and Further Assistance 

Taxpayers in Juneau designated by the Federal Emergency Management Agency (FEMA) are automatically eligible for this relief, eliminating the need to contact the IRS. However, those who receive a late-filing or late-payment notice can reach out to the IRS to resolve any discrepancies.