The IRS has announced a significant extension of tax relief for individuals and businesses in Minnesota affected by the severe storms and flooding that began on June 16, 2024. This move comes as part of the federal response to the widespread damage caused by these natural disasters.
Relief Overview
Affected taxpayers in 25 counties across Minnesota now have until February 3, 2025, to file various federal tax returns and make tax payments. This extension provides much-needed breathing room for those impacted by the severe weather.
Counties Covered by the Relief
The relief applies to taxpayers in the following counties:
Blue Earth
Carver
Cass
Cook
Cottonwood
Faribault
Fillmore
Freeborn
Goodhue
Itasca
Jackson
Lake
Le Sueur
Mower
Murray
Nicollet
Nobles
Pipestone
Rice
Rock
St. Louis
Steele
Wabasha
Waseca
Watonwan
This list may be updated to include additional counties as assessments are completed. For the latest information on eligible areas, visit the Tax Relief in Disaster Situations page on IRS.gov.
What’s Included in the Relief
The extended deadline covers a range of tax filing and payment obligations:
Filing Deadlines: Individuals, businesses, and tax-exempt organizations with extensions to file their 2023 federal returns will now have until February 3, 2025, to submit these returns. Note, however, that payments for these returns, which were due earlier in the year, do not qualify for this extension.
Estimated Tax Payments: Quarterly estimated income tax payments normally due on June 17 and September 16, 2024, and January 15, 2025, are now extended to February 3, 2025.
Payroll and Excise Tax Returns: Quarterly payroll and excise tax returns due on July 31 and October 31, 2024, and January 31, 2025, are also extended to February 3, 2025.
Penalty Relief: Penalties for failing to make payroll and excise tax deposits due between June 16, 2024, and July 1, 2024, will be abated, provided deposits were made by July 1, 2024.
Additional Tax Relief Measures
Disaster-Related Losses: Taxpayers who suffer uninsured or unreimbursed losses due to the disaster can claim these losses on either their 2023 or 2024 federal income tax returns. Taxpayers have up to six months after their return's due date to make this election, which means until October 15, 2025, for individuals.
Qualified Disaster Relief Payments: Payments received from government agencies for necessary expenses or home repairs are generally excluded from gross income. For more details, refer to IRS Publication 525, "Taxable and Nontaxable Income."
Retirement Plan Relief: Individuals affected by the disaster may qualify for special disaster distributions from retirement plans or IRAs, which would not be subject to the additional 10% early distribution tax and can be spread over three years. Specific rules apply, so consult your plan administrator or IRS guidelines.
Special Considerations
The IRS automatically provides relief to taxpayers with an IRS address of record in the disaster area. If you receive a penalty notice and believe you should qualify for relief, contact the IRS using the number on the notice.
For those whose records are located in the disaster area but who reside outside of it, or for tax preparers with clients affected by the disaster, additional coordination with the IRS may be necessary. Contact the IRS at 866-562-5227 for assistance.
Resources for Tax Preparation
For those seeking help with tax preparation:
Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) provide free tax help. Locate a site using the VITA Locator Tool or call 800-906-9887.
AARP Tax-Aide services can be found using the AARP Site Locator Tool or by calling 888-227-7669.
IRS Free File offers free tax preparation for eligible taxpayers, with options for guided software or Free File Fillable Forms. Access these through the IRS Free File website.
MilTax, a program for military members and some veterans, provides free tax software and filing services.
Stay Informed
For ongoing updates and information about disaster recovery, visit disasterassistance.gov. The IRS may provide additional relief based on evolving needs and future assessments.
This extended relief aims to ease the tax burden on Minnesotans grappling with the aftermath of severe storms and flooding, giving them extra time to recover and rebuild.
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