September 21, 2025

IRS Offers Tax Relief for Milwaukee Storm Victims

here-intlog
September 21, 2025
6:35 am
Milwaukee

News Summary

The IRS has announced tax relief measures for individuals and businesses in Milwaukee, Washington, and Waukesha counties affected by severe storms and flooding. Taxpayers can file and pay taxes due until February 2026 without penalties. The extension includes tax deadlines for various returns, and the IRS will automatically identify eligible residents. This relief aims to alleviate the financial burden following the disaster, providing crucial support for recovery efforts in the impacted communities.

Milwaukee, Wisconsin – The Internal Revenue Service (IRS) has announced tax relief measures for individuals and businesses located in Milwaukee, Washington, and Waukesha counties, significantly impacted by severe storms, straight-line winds, flooding, and mudslides that began on August 9, 2025. This decision comes in light of the Federal Emergency Management Agency (FEMA) issuing a disaster declaration for the affected areas, enabling residents to receive much-needed tax assistance.

Eligible taxpayers have until February 2, 2026, to file their tax returns and pay any taxes originally due during the disaster period. This relief extension applies specifically to various tax deadlines that include extensions for individuals and businesses for their 2024 returns due on October 15. Quarterly estimated income tax payments that were due on September 15 and January 15, 2026, along with quarterly payroll and excise tax returns due on October 31 and January 31, 2026, are also covered under this relief effort.

Furthermore, calendar-year partnerships and S corporations with extensions expiring on September 15, calendar-year corporations with extensions expiring on October 15, and tax-exempt organizations with extensions expiring on November 17 are eligible for the same relief.

Notably, payments for returns on a filing extension will not qualify for additional time to pay. The extensions only apply to the filing of returns, and taxpayers affected by the disaster will be automatically identified by the IRS, receiving the necessary filing and payment relief without having to take further action.

For those located outside the disaster area but affected by the storms, the IRS encourages contacting the IRS Special Services at 866-562-5227 to discuss potential tax relief options. Taxpayers who receive late filing or payment penalty notices during the extended deadline should contact the IRS to request abatement of these penalties, ensuring no undue financial burden.

Additionally, taxpayers can claim disaster-related casualty losses on their federal income tax returns for the year of the disaster or even for the previous year. Installment agreement payments made before the disaster will not default during the postponement period; however, interest will still accrue.

Affected taxpayers will benefit from the IRS waiving usual fees for copies of previously filed tax returns. Importantly, qualified disaster relief payments received from government sources can be excluded from gross income, providing further financial relief. Taxpayers may also qualify for special disaster distributions from retirement plans, which would not incur early distribution taxes.

It is recommended that all affected taxpayers write the FEMA disaster declaration number (4892-DR) on any return where they are claiming disaster-related losses to facilitate the processing of their claims. Furthermore, the IRS has indicated that additional disaster relief may be provided in the future for those still dealing with the aftermath of the storms.

For taxpayers who do not qualify for disaster tax relief but are facing penalties, they can access information on reasonable cause penalty abatement to find relief options available to them. Comprehensive guidelines and more information can be found on the official IRS website at IRS.gov.

The tax relief measures offered by the IRS serve as crucial assistance to those recovering from these recent natural disasters, helping alleviate one aspect of the burdens that many individuals and businesses currently face.