IRS Provides Tax Relief to Victims of Tropical Storm Ernesto in US Virgin Islands

The IRS has provided tax relief for individuals and businesses affected by Tropical Storm Ernesto that began on August 13, 2024, in the U.S. Virgin Islands. These taxpayers now have until February 3, 2025, to file various federal individual and business tax returns and make tax payments. (IR 2024-226, 8/28/2024)

Disaster area.

Individuals who reside and businesses located on any of the four U.S. Virgin Islands qualify for this tax relief.

Filing and payment relief.

This tax relief postpones various tax filing and payment deadlines that occurred from August 13, 2024, through February 3, 2025 (the “postponement period”). The February 3, 2025, deadline will now apply to:

• Any individual, business or tax-exempt organization that has a valid extension to file their 2023 federal return.
• Quarterly estimated income tax payments normally due on September 16, 2024, and January 15, 2025.
• Quarterly payroll and excise tax returns normally due on October 31, 2024, and January 31, 2025.

In addition, the IRS will abate penalties for failing to make payroll and excise tax deposits due on or after August 13, 2024, and before August 28, 2024, if the deposits are made by August 28, 2024.

Disaster losses.

Individuals and businesses in the disaster area who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either their 2023 or 2024 return. Individual taxpayers have until October 15, 2025, to make this election.

Be sure to write the FEMA declaration number — 3611-EM — on any return claiming a loss. See Publication 547, Casualties, Disasters, and Thefts, for details.

Additional relief.

The IRS’ Disaster assistance and emergency relief for individuals and businesses webpage has details on other returns, payments and tax-related actions that qualify for relief during the postponement period.

Tax relief is automatic.

The IRS automatically provides this tax relief to any taxpayer with an IRS address of record located in the disaster area. These taxpayers do not need to contact the agency to get this relief.

However, taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 886-562-5227.

Tax preparers located in the disaster area with clients located outside the disaster area can choose to use the bulk requests from practitioners for disaster relief option, described on IRS.gov.

For more information about tax relief in disaster situations, see Checkpoint’s Federal Tax Coordinator ¶ S-8501.30.