On December 23, 2025, the IRS announced tax relief for individuals and businesses affected by December storms. This follows the disaster declaration by FEMA and permits the IRS to postpone certain deadlines and waive penalties. Affected taxpayers now have until May 1, 2026, to file various federal individual and business tax returns and make tax payments.

Affected Taxpayers

To qualify for tax relief, taxpayers do not need to have experienced loss or damage. Taxpayers who live or have a business in Benton, Chelan, Clallam, Grays Harbor, Jefferson, King, Kittitas, Lewis, Mason, Pierce, Samish, Skagit, Snohomish, Thurston, Wahkiakum, Whatcom, and Yakima counties qualify.

Postponed Filings

The new May 1, 2026, deadline applies to:

• Most tax returns (including individual, corporate, partnership, S corporation, estate, trust, gift, and tax-exempt organizations) and payments normally due on or after December 9, 2025.
• Contributions to IRAs and HSAs for eligible taxpayers normally due April 15, 2026.
• Quarterly estimated tax payments normally due on January 15, 2026, and April 15, 2026.
• Quarterly payroll and certain excise tax returns normally due on January 31, 2026, and April 30, 2026.

How It Works

The IRS system automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. If you qualify and receive a late filing or late payment penalty notice from the IRS, call the number on the notice to get it abated.

Even with this announcement, our recommendation is to file and pay your taxes timely. The tax relief is broad but does not postpone all forms and waive all penalties.

Other Items

Affected taxpayers may also claim disaster-related casualty losses on their tax return. Casualty losses can be claimed in either the year of the event or the year prior.

For the full announcement and details, see IRS Release WA-2025-03.