Insight

Tax relief for disaster recovery efforts

Insights and practical guidance in the wake of a natural disaster

Ruth Madrigal

Ruth Madrigal

Principal, Exempt Organizations Group, Washington National Tax, KPMG LLP

202-533-8817

KPMG examines the special tax law provisions that may help taxpayers and businesses recover financially from the impact of a disaster.

 

 When a natural disaster becomes an unfortunate reality, those affected are widespread:

  • Communities where destruction occurred
  • Companies that have had loss of property
  • Employers, charities, and the community providing support to their employees
  • Contractors involved in rebuilding the infrastructure
  • Insurers assessing the damage

Bookmark this page to stay on top of the latest news and insights for entities that may be affected by a natural disaster.

The provision for the federal disaster relief tax credit has been extended through 2020.


This general business credit first became available in 2017, in part due to the hurricanes that ravaged the South and the wildfires that swept through California.  The credit is now available through 2020, with opportunities to claim the credit retroactively, including amending federal return filings for refunds. 

 

Latest KPMG reports

Like-kind exchange relief for taxpayers affected by Hurricane Ida

Relief beyond taxpayers in Louisiana


 The IRS has granted “affected taxpayers” with respect to Hurricane Ida an extension of time to perform certain actions.

This September 2021 report explains how taxpayers affected by the disaster—including those located outside the specific covered disaster area—may qualify for this rare extension of time.

Read the report

Employers helping employees

Approaches that employers may want to consider for assisting employees in times of need


When a disaster strikes, employers often want to help their affected employees.

Although employer-provided assistance raises tax questions, it may be possible for employers to make certain payments, implement reimbursements, and offer other forms of help, so that some or all of the employer-provided assistance is non-taxable, but nonetheless deductible.

This July 2021 report discusses those possibilities, as well as other approaches that employers may want to consider for assisting employees in times of need.

Read the report

 

Latest news and guidance

 

FBAR filing deadline relief for persons affected by certain natural disasters

October 6, 2021 | Persons affected by certain natural disasters have until December 31, 2021, to file FBAR for 2020 calendar year

 

Storms and flooding

  

2022

IRS to waive dyed diesel fuel penalty in Florida; hurricane-related relief

September 30, 2022 |  The relief is effective as of September 28, 2022, and will remain in effect through October 19, 2022.

Read more


 

IRS provides tax relief for certain taxpayers affected by storms in Alaska

September 27, 2022 | February 15, 2023 deadline to file various individual and business tax returns and make tax payments.

Read more


 

IRS provides tax relief for taxpayers in Puerto Rico affected by Hurricane Fiona

September 19 , 2022 | Certain deadlines falling on or after September 17, 2022, and before February 15, 2023, are postponed through February 15, 2023.

Read more


 

IRS provides tax relief for certain taxpayers affected by storms in Arizona

September 8, 2022 | Salt River Pima-Maricopa Indian community

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IRS provides tax relief for taxpayers affected by storms in Missouri

August 10, 2022 Taxpayers affected by storms in Missouri now have until November 15, 2022, to file various individual and business tax returns.

Read more


 

IRS provides tax relief for taxpayers affected by storms in Kentucky

August 2, 2022 Taxpayers affected by storms now have until November 15, 2022, to file various individual and business tax returns.

Read more


 

IRS provides tax relief for taxpayers affected by storms in Puerto Rico

March 31, 2022 | Taxpayers affected by severe storms now have until June 15, 2022, to file various individual, business tax returns and to make tax payments.

Read more


 

IRS provides tax relief for taxpayers affected by Tennessee storms, tornadoes

January 20, 2022 | Taxpayers in Tennessee affected by December 2021 storms now have until May 16, 2022, to file individual and business tax returns.

Read more


 

IRS provides tax relief for taxpayers affected by Washington State flooding, mudslides

January 11, 2022 | Tax relief for taxpayers in Washington State that were affected by November 2021 flooding and mudslides.

Read more


 

IRS modifies Hurricane Ida-related tax relief for taxpayers in six states

January 04, 2022 | Revised tax relief for taxpayers in six states to file individual and business tax returns and make tax payments.

Read more


 

IRS provides tax relief for taxpayers affected by Colorado wildfires

January 03, 2022 | Tax relief postpones various tax filing and payment deadlines that occurred starting on or after December 30, 2021.

Read more

2021

IRS provides tax relief for taxpayers affected by tornadoes in Arkansas

December 28, 2021 | Taxpayers affected by tornadoes now have until May 16, 2022, to file individual and business tax returns and to make certain tax payments.

Read more


IRS provides tax relief for taxpayers affected by storms in Alabama

December 28, 2021 | Taxpayers affected by storms now have until February 28, 2022, to file individual and business tax returns and to make certain tax payments.

Read more


IRS extends Hurricane Ida tax relief to taxpayers in six states to February 15, 2022

December 22, 2021 | Taxpayers in six states have until February 15, 2022 to file individual and business tax returns and make tax payments.

Read more


IRS provides tax relief for taxpayers affected by tornadoes in Illinois and Tennessee

December 20, 2021 | Taxpayers now have until May 16, 2022, to file individual and business tax returns and to make certain tax payments.

Read more


IRS provides tax relief for taxpayers affected by tornadoes in Kentucky

December 14, 2021 | Tax relief postpones various tax filing and payment deadlines that occurred starting on December 10, 2021.

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IRS expands tax relief to all taxpayers in Mississippi affected by Hurricane Ida

November 17, 2021 | The IRS is expanding the extended relief period to cover the entire state of Mississippi.

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IRS filing, payment relief for taxpayers affected by Hurricane Ida (Connecticut)

November 3, 2021 | Extended deadline to file individual and business tax returns and to make certain tax payments.

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IRS expands tax relief, certain taxpayers in Mississippi affected by Hurricane Ida 

October 27, 2021 | Extending the relief period to certain taxpayers within the state.

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IRS extends dyed diesel fuel penalty relief in Louisiana, response to hurricanes

September 15, 2021 | Penalty relief extended through September 30, 2021.

Read more


Tax relief for taxpayers in Pennsylvania affected by Hurricane Ida

September 14, 2021 | Taxpayers now have until January 3, 2022, to file individual and business tax returns.

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IRS provides tax relief for taxpayers in North Carolina affected by Tropical Storm Fred

September 13, 2021 | The tax relief postpones various tax filing and payment deadlines through December 15, 2021, that occur starting on August 16, 2021.

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Tax relief for taxpayers in Mississippi affected by Hurricane Ida

September 10, 2021 | Taxpayers in all 82 counties and the Mississippi Choctaw Indian Reservation may qualify for tax relief.

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IRS provides tax relief for taxpayers affected by Hurricane Ida (New York and New Jersey)

September 8, 2021 | Deadline of January 3, 2022, to file individual and business tax returns and to make certain tax payments.

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KPMG report: Like-kind exchange relief for taxpayers affected by Hurricane Ida

September 8, 2021 | Relief beyond taxpayers in Louisiana.

Read more


IRS to waive dyed fuel penalty in Louisiana; hurricane-related relief

September 1, 2021 | The IRS will not impose a penalty when dyed diesel fuel is sold for use or used on the highway in Louisiana.

Read more


IRS provides tax relief for taxpayers in Louisiana affected by Hurricane Ida

August 31, 2021 | Taxpayers in Louisiana now have until January 3, 2022, to file individual and business tax returns and to make certain tax payments.

Read more


IRS provides tax relief for taxpayers affected by August 2021 storms in Tennessee

August 27, 2021 | Certain deadlines falling on or after August 21, 2021, and before January 3, 2022, are postponed through January 3, 2022.

Read more


IRS provides tax relief for taxpayers affected by June 2021 storms in Michigan 

July 21, 2021 | FEMA declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines.

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IRS provides tax relief for taxpayers affected by March 2021 storms in Tennessee

May 14, 2021 | IRS announced that taxpayers affected by severe storms now have until August 2, 2021, to file various individual and business tax returns.

Read more


IRS provides tax relief for taxpayers affected by March 2021 storms in Alabama

April 29, 2021 | Certain deadlines falling on or after March 25, 2021, and before August 2, 2021, are postponed through August 2, 2021.

Read more


IRS provides tax relief for taxpayers affected by February 2021 storms in Kentucky

April 29, 2021 | Certain deadlines falling on or after February 27, 2021, and before June 30, 2021, are postponed through June 30, 2021.

Read more


 

IRS provides tax relief for taxpayers affected by winter storms in Louisiana

March 11, 2021 | The IRS announced that taxpayers in Louisiana affected by winter storms that began February 11-19, 2021, now have until June 15, 2021, to file various individual and business tax returns and make tax payments.

Read more



“Qualified disaster” declaration allowing employer-sponsored charities to provide relief (Louisiana)

March 11, 2021 | The IRS issued a release announcing tax relief for taxpayers in Louisiana affected by winter storms that began February 11-19, 2021. This follows the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA).

Read more


IRS provides tax relief for taxpayers affected by winter storms in Oklahoma

February 25, 2021 | The IRS today announced that taxpayers in Oklahoma affected by winter storms that began February 8, 2021, now have until June 15, 2021, to file various individual and business tax returns and make tax payments.

Read more


“Qualified disaster” declaration allowing employer-sponsored charities to provide relief (Oklahoma)

February 25, 2021 | The IRS today issued a release announcing tax relief for taxpayers affected by the winter storms in Oklahoma that began February 8, 2021. This follows the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA).

Read more


IRS provides relief for taxpayers affected by winter storms in Texas

February 22, 2021 | The IRS today announced it was providing relief for taxpayers affected by the winter storms in Texas that began February 11, 2021.

Read more


“Qualified disaster” declaration allowing employer-sponsored charities to provide relief (Texas)

February 22, 2021 | The IRS issued a release announcing tax relief for taxpayers affected by the winter storms in Texas that began February 11, 2021. 

Read more


IRS announces waiver of dyed fuel penalty in Texas

February 19, 2021 | The IRS today announced that it will not impose a penalty when dyed diesel fuel is sold for use or is used on the highway in Texas.

Read more

 

2020

IRS provides tax relief for taxpayers affected by Hurricane Zeta (Alabama, Louisiana, Mississippi)

December 14, 2020 | The IRS issued a release announcing that certain taxpayers in Alabama and Mississippi that were affected by Hurricane Zeta (beginning date October 28, 2020) now have until March 1, 2021, to file various individual and business tax returns and to make certain tax payments.

Read more


Relief for taxpayers affected by September 2020 storm and flooding (Puerto Rico)


December 9, 2020 | The IRS issued a release announcing that certain taxpayers in Puerto Rico affected by a September 13 severe storm and flooding have until January 15, 2021, to file individual and business tax returns and to make certain tax payments.

Read more


Tax relief for taxpayers in Louisiana affected by Hurricane Delta

October 19, 2020 | The IRS today issued a release announcing that certain taxpayers in Louisiana that were affected by Hurricane Delta (beginning date October 6, 2020) now have until February 16, 2021, to file individual and business tax returns and to make certain tax payments.

Read more


FBAR filing deadline; relief for persons affected by recent natural disasters

October 6, 2020 | The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) today issued a notice announcing that persons affected by the California wildfires, the Oregon wildfires, the Iowa derecho, and Hurricane Laura and Hurricane Sally have until December 31, 2020, to file the “Reports of Foreign Bank and Financial Accounts” (FBAR) for the 2019 calendar year.

Read more


Tax relief for taxpayers in Florida affected by Hurricane Sally

October 5, 2020 | The IRS today issued a release announcing that certain taxpayers in Florida that were affected by Hurricane Sally (beginning date September 14, 2020) now have until January 15, 2021, to file individual and business tax returns and to make certain tax payments.

Read more


Tax relief for taxpayers in Alabama affected by Hurricane Sally

September 24, 2020 | The IRS today issued a release announcing that certain taxpayers in Alabama that were affected by Hurricane Sally that began September 14, 2020, now have until January 15, 2021, to file individual and business tax returns and to make certain tax payments.

Read more


Tax relief for Puerto Rico taxpayers affected by Tropical Storm Isaias

September 11, 2020 | IRS Tax relief for Puerto Rico taxpayers affected by Tropical Storm Isaias

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IRS provides tax relief to taxpayers affected by Hurricane Laura

August 31, 2020 | The IRS today announced the availability of tax relief for taxpayers affected by Hurricane Laura.

Read more


IRS provides tax relief for taxpayers affected by California wildfires, Iowa derecho

August 25, 2020 |  The IRS issued releases announcing relief for taxpayers affected by the California wildfires and for taxpayers affected by the derecho in Iowa. In general, tax returns and tax payments with an October 15, 2020 due date are postponed to December 15, 2020.

Read more


IRS offers tax relief for Michigan storm and Utah earthquake victims

July 27, 2020  | The IRS issued a release providing tax relief for taxpayers affected by severe storms and flooding that began in Michigan on May 16, 2020, and for taxpayers who were affected by the earthquake and aftershocks that began in Utah on March 18, 2020.

Read more


Tax relief for taxpayers affected by April storms in Mississippi, South Carolina, Tennessee

June 23, 2020 |  The IRS today announced that taxpayers affected by April 2020 tornadoes, severe storms, and flooding in Mississippi, South Carolina, and Tennessee have until October 15, 2020, to file individual and business tax returns and to make certain tax payments.

Read more


Tax relief for taxpayers affected by early February 2020 storms in Oregon 

May 7, 2020 | The IRS announced that taxpayers affected by severe storms, flooding, landslides, and mudslides in Oregon that began on February 5, 2020, may qualify for tax relief. 

Read more


IRS offers tax relief, taxpayers affected by tornadoes in Tennessee

March 6, 2020 | The IRS announced extended due dates and other tax relief measures for taxpayers affected by tornadoes and severe storms in parts of Tennessee.

Read more

Wildfires

  

2022

IRS extends tax relief for taxpayers affected by wildfires in New Mexico

August 3, 2022 Updated tax relief deadline of September 30, 2022, and incident name

Read more

 

2021

IRS extends tax relief for taxpayers affected by California wildfires

November 15, 2021 | Extended tax relief until January 3, 2022 (instead of November 15, 2021)

Read more


 

Tax relief for taxpayers in California affected by wildfires

August 27, 2021 | Certain deadlines falling on or after July 14, 2021, and before November 15, 2021, are postponed through November 15, 2021.

 

Read more

2020

FBAR filing deadline; relief for persons affected by recent natural disasters


October 6, 2020 | The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) today issued a notice announcing that persons affected by the California wildfires, the Oregon wildfires, the Iowa derecho, and Hurricane Laura and Hurricane Sally have until December 31, 2020, to file the “Reports of Foreign Bank and Financial Accounts” (FBAR) for the 2019 calendar year.

Read more


Tax relief for taxpayers affected by Oregon wildfires

September 17, 2020 | The IRS today issued a release announcing that certain taxpayers in Oregon that were affected by wildfires and straight-line winds that began September 7, 2020, now have until January 15, 2021, to file individual and business tax returns and to make certain tax payments.

Read more

Water shortages

    

2022

Notice 2022-43: Farmers, ranchers affected by drought allowed more time to replace livestock

September 28, 2022 |  Guidance for farmers and ranchers who were forced to sell livestock on account of drought in specific counties

Read more


 

IRS provides tax relief for taxpayers affected by water crisis (Mississippi)

September 2, 2022 | The tax relief is provided after a recent disaster declaration issued by FEMA.

Read more


 

IRS provides tax relief for taxpayers affected by water issues in U.S. Virgin Islands (St. Croix)

August 3, 2022 | Taxpayers on the island of St. Croix, the U.S. Virgin Islands now have until November 15, 2022, to file various returns

Read more

    

2021

Notice 2021-55: Farmers, ranchers affected by drought allowed more time to replace livestock

September 24, 2021    Counties that experienced exceptional, extreme or severe drought conditions during the 12-month period ending August 31, 2021

Read more

Earthquakes

  

2020

FBAR filing deadline; relief for persons affected by recent natural disasters


October 6, 2020 | The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) today issued a notice announcing that persons affected by the California wildfires, the Oregon wildfires, the Iowa derecho, and Hurricane Laura and Hurricane Sally have until December 31, 2020, to file the “Reports of Foreign Bank and Financial Accounts” (FBAR) for the 2019 calendar year.

Read more


IRS offers tax relief for Michigan storm and Utah earthquake victims

July 27, 2020  | The IRS issued a release providing tax relief for taxpayers affected by severe storms and flooding that began in Michigan on May 16, 2020, and for taxpayers who were affected by the earthquake and aftershocks that began in Utah on March 18, 2020.

Read more


IRS offers tax relief for taxpayers affected by Puerto Rico earthquakes

January 23, 2020 | The IRS announced that taxpayers who have been affected by the earthquakes that began on December 28, 2019, in Puerto Rico may qualify for tax relief.

Read more


Puerto Rico: Tax relief for taxpayers affected by January 2020 earthquakes

January 9, 2020 | The Puerto Rico Department of Treasury issued guidance providing tax relief for those taxpayers affected by the earthquakes in January 2020.

Read more

 

Coronavirus (COVID-19) 

  

Ongoing

Regulations: Recapture of excess employment tax credits under the “American Rescue Plan Act” (COVID-19)

September 8, 2021 | Assessment of any erroneous refund of the tax credits paid under sections 3131, 3132, and 3134.

Read more


TaxNewsFlash – COVID-19 Developments

KPMG reports of tax developments in response to the coronavirus (COVID-19).

Read more


GMS Flash Alerts – COVID-19 Updates

All Flash Alerts on the topic of COVID-19.

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COVID-19: Insights on tax impacts

Tax and trade developments from around the world

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Family Office Insights

COVID-19 Tax Relief for Individuals and Family Offices

Read more

Earlier events

  

2019 Storms and Flooding

IRS offers tax relief for taxpayers affected by South Dakota storms


November 22, 2019 | The IRS announced that taxpayers who have been affected by the storms, tornadoes, and flooding that began on September 9, 2019, in South Dakota may qualify for tax relief..

Read more


Senate Finance disaster tax relief taskforce report 

October 15, 2019 |  The U.S. Senate Finance Committee has released the final report from the bipartisan taskforces addressing temporary tax policy. This last report relates to disaster tax relief.

Read more


Final regulations: Timing of losses related to federally declared disasters

October 11, 2019 |  The U.S. Treasury Department and IRS this afternoon released for publication in the Federal Register final regulations (T.D. 9878) setting forth the rules and procedures for making and revoking the election to accelerate the timing of a loss sustained by a taxpayer attributable to a federally declared disaster.

Read more


IRS provides tax relief for taxpayers affected by Tropical Storm Imelda

October 7, 2019 | The IRS issued a release announcing that certain taxpayers affected by Tropical Storm Imelda have until January 31, 2020, to file individual and business tax returns and to make certain tax payments.

Read more


Tax relief for taxpayers affected by storms in Mississippi (February-March 2019) (February - March 2019)

September 25, 2019 | The IRS announced that taxpayers who have been affected by the severe storms, straight-line winds, tornadoes, and flooding that took place from February 22, 2019, to March 29, 2019, in Mississippi may qualify for tax relief.

Read more

 


Tax relief for taxpayers affected by storms, flooding in Iowa

March 26, 2019 | The IRS announced that taxpayers who have been affected by the severe storms and flooding that took place on March 12, 2019, in Iowa may qualify for tax relief.

Read more


IRS relief for storm victims in Nebraska

March 22, 2019 | The IRS announced that taxpayers affected by the severe winter storm, straight-line winds, and flooding that took place on March 9, 2019, in Nebraska may qualify for tax relief.

Read more

2019 California wildfires

TTB excise tax penalty relief for industry affected by California wildfires


The Alcohol and Tobacco Tax and Trade Bureau (TTB) of the U.S. Treasury Department issued a release explaining that businesses (such as wineries) affected by the recent wildfires in California may obtain a waiver of excise tax-related penalties for not timely filing or paying excise taxes.

Read more


IRS temporarily expands low-income housing credit rules, hurricane-related relief 

The IRS issued a release announcing that it is providing temporary relief from certain requirements under the low-income housing credit program to provide relief for individuals affected by the recent hurricanes and other disasters. The IRS relief allows low-income housing units (wherever located) to be offered to displaced victims of Hurricanes Michael and Florence or other recent disasters.

Read more


 

KPMG report: Casualty loss deduction calculations, individual income tax returns

Following the 2017 hurricanes and tropical storms in the United States, the IRS issued guidance for taxpayers accounting for losses incurred on personal real property and belongings. The IRS guidance provides alternative ways to calculate the amount of the loss.

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Final regulations

Have been released and are scheduled to be effective on October 16, 2019.

Learn more here

News on tax relief for disaster recovery

KPMG news archive of insights for taxpayers affected by a natural disaster.