The IRS has announced a one-day extension for taxpayers with federal tax deadlines originally set for Thursday, January 9, 2025. The new deadline is Friday, January 10, 2025.
This extension comes in response to a Presidential Proclamation issued on December 29, 2024, declaring January 9 as a National Day of Mourning to honor James Earl Carter, Jr., the 39th President of the United States.
Here’s what the extension covers:
Tax Returns: Any federal tax return that would have been due on January 9, 2025.
Tax Payments: Federal tax payments, including income, payroll, or excise taxes, originally required by that date.
Tax Deposits: Federal tax deposits, including those processed through the Electronic Federal Tax Payment System (EFTPS).
The extension provides taxpayers an extra day to ensure compliance with their federal tax obligations without facing penalties.
If you have returns or payments due on January 9, take advantage of this extended deadline to file or pay by January 10, 2025.
If you underpaid taxes in 2024, consider making a fourth-quarter estimated tax payment by Jan. 15, 2025, to avoid penalties.
The U.S. tax system requires payments throughout the year via paycheck withholdings or quarterly estimated payments. Missing a quarterly payment may lead to penalties when filing your 2025 return.
Who Needs to Pay?
Self-employed individuals or independent contractors.
Those who owed taxes last year and may owe again.
Households with two earners or additional income sources like dividends.
Taxpayers with complex financial situations or inadequate withholding.
What Income is Taxed? Taxable income includes side jobs, gig work, unemployment benefits, digital assets (e.g., cryptocurrency), year-end bonuses, stock dividends, and capital gains.
How to Pay Payments can be made through the IRS Online Account, Direct Pay, EFTPS, or by check to “United States Treasury.”
Making a payment now may reduce or eliminate penalties. Use tools like the IRS The Tax Withholding Estimator or Form 1040-ES to calculate your estimated payment.
Plan ahead and take steps to avoid surprises during the upcoming tax season.
In 2025, several significant natural disasters have impacted various regions across the United States. In response, the IRS has announced tax relief measures to support affected individuals and businesses. This article outlines the disasters and the corresponding tax relief provisions.
California Wildfires and Straight-Line Winds
Incident Period: January 7, 2025 – January 31, 2025
Affected Area: Los Angeles County, California
IRS Relief Measures:
Extended Tax Relief for Southern California Wildfire Victims: Affected taxpayers have until October 15, 2025, to file federal individual and business tax returns and make tax payments. This extension applies to deadlines falling between January 7, 2025, and October 15, 2025 for those impacted by.
Penalties Abatement: Penalties for payroll and excise tax deposits due between January 7 and January 22, 2025, are abated if the deposits were made by January 22, 2025.
Kentucky Severe Storms, Flooding, and Landslides
Incident Period: February 14, 2025, and continuing
Affected Area: Entire state of Kentucky
IRS Relief Measures:
Extended Deadlines: Affected taxpayers have until November 3, 2025, to file federal individual and business tax returns and make tax payments. This extension applies to deadlines falling between February 14, 2025, and November 3, 2025.
Penalties Abatement: Penalties for payroll and excise tax deposits due between February 14 and March 1, 2025, are abated if the deposits were made by March 1, 2025.
Hurricane Helene
Incident Period: September 1, 2024, and continuing
Affected Areas: Parts of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, and Tennessee
IRS Relief Measures:
Extended Deadlines: Affected taxpayers have until May 1, 2025, to file federal individual and business tax returns and make tax payments. This extension applies to deadlines falling between September 1, 2024, and May 1, 2025.
Penalties Abatement: Penalties for payroll and excise tax deposits due between September 1 and September 15, 2024, are abated if the deposits were made by September 15, 2024.
General Guidance for Affected Taxpayers
Automatic Application of Relief: The IRS automatically applies filing and payment relief to taxpayers with an IRS address of record in the disaster area. Those who moved to the area after filing their last return or whose records are located in the affected area should contact the IRS at 866-562-5227.
Claiming Disaster-Related Losses: Uninsured or unreimbursed disaster-related losses can be claimed on either the tax return for the year the loss occurred or the prior year. To claim these losses, file Form 4684, Casualties and Thefts, and attach it to your individual tax return (Form 1040). If claiming the loss for a prior year, file an amended return using Form 1040-X and include Form 4684. Remember to write the appropriate FEMA disaster declaration number on the forms (e.g., 4856-DR for the California wildfires).
Staying informed about disaster relief options is crucial for effective recovery. Tax professionals and preparers should monitor updates to assist clients in navigating these relief measures.
IRS Disaster Relief Page: For a comprehensive list of disaster declarations and related tax relief, visit the IRS Tax Relief in Disaster Situations page.
Note: The information provided is based on IRS announcements as of March 10, 2025. Affected taxpayers should consult the IRS or a tax professional for the most current guidance.
