IRS Extends Tax Relief Deadline to Nov. 3 for Missouri Storm Victims

Heavy storms, tornadoes, and wildfires have swept across Missouri, leaving a trail of destruction and prompting the Internal Revenue Service (IRS) to step in with much-needed tax relief for affected individuals and small business owners. As these taxpayers begin the arduous process of recovery, they’ll find significant benefits in the form of extended tax filing and payment deadlines, alongside other supportive measures.

Starting March 14, 2025, various counties in Missouri experienced severe weather events that now qualify for federal tax relief. Specifically, taxpayers in locations such as Bollinger, Butler, and Jefferson counties will have their tax deadlines postponed until November 3, 2025. The IRS has stated that relief will also extend to any additional counties that may be designated later.

“As we respond to the devastating impact of these disasters, our goal is to provide relief to those in affected areas, allowing individuals and businesses the time they need to recover,” said IRS Policy Director.

This postponement applies to a broad range of tax obligations, including individual income tax returns originally due on April 15, corporate returns due on the same date, and quarterly payroll and excise tax returns due throughout 2025. Additionally, penalties for failing to make payroll and excise tax deposits during this period can be waived, as long as payments are made by the end of March.

For small business owners, the implications of these tax relief measures are significant. They can use the extra time to focus on rebuilding rather than worrying about immediate tax deadlines. It provides a cushion, enabling businesses to better manage their finances as they recover from losses.

However, it’s not all smooth sailing. The extended deadlines mean that business owners will still need to navigate their accounting and tax duties during a chaotic time. They’ll also need to keep apprised of any rulings and ensure they meet the conditions laid out for the relief. For example, tax practitioners who manage multiple clients in the covered disaster area may need to contact the IRS for bulk requests if they have the necessary documentation.

Additionally, affected taxpayers may opt to claim disaster-related losses when filing either their 2025 or the prior year’s return, providing another financial buffer. This can be crucial for small businesses needing to demonstrate losses to secure financial assistance or loans.

Still, it’s essential for small business owners to note some limitations. The relief does not apply to all types of returns; for instance, penalties related to information returns like W-2s and 1099s are not postponed, and typically, the relief does not extend to employment and excise tax deposits. However, the waiver of penalties on certain tax deposits due before the end of March 2025 could alleviate some financial pressure.

Small business owners can also take comfort in knowing that if they receive any late penalty notices related to deadlines during this postponement period, they can call the IRS to have these penalties abated. Particularly those operating businesses outside the designated disaster areas but whose records are with their offices in affected counties should reach out for assistance.

The long-term ramifications of such disasters don’t just stop at immediate tax relief. Additional measures are in place for those enrolled in retirement plans or individual retirement arrangements (IRAs). For example, small business owners may qualify for special disaster distributions that come with certain tax benefits, though plan-specific regulations will apply.

It’s worth noting that financial recovery after natural disasters is often difficult, and while tax relief will provide some immediate assistance, recovering local economies will take time. Business owners should also maintain communication with lenders and any affected stakeholders to build out recovery plans that could involve other forms of relief such as grants and loans.

For more details on the available tax relief and the specific forms that may be required, small business owners can access the official IRS announcement at IRS.gov and stay informed on the latest updates. As Missouri works to rebuild from these setbacks, small business owners can leverage these provisions to chart a path forward more resiliently.

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This article, "IRS Extends Tax Relief Deadline to Nov. 3 for Missouri Storm Victims" was first published on Small Business Trends