In the wake of the severe storms, tornadoes, and flooding that struck Mississippi in March 2025, the Internal Revenue Service (IRS) has announced federal tax relief for individuals and businesses affected by the disaster. This move aims to ease the financial burden on residents in declared disaster areas and give them more time to meet their tax obligations.
Here’s everything you need to know about the IRS disaster relief program for Mississippians—including eligibility, extended deadlines, and how to claim it.
What Happened in March 2025?
In March 2025, powerful storms swept through parts of Mississippi, causing widespread property damage, displacing families, and disrupting daily life. The National Weather Service confirmed several tornado touchdowns, and the governor quickly declared a state of emergency in multiple counties.
Following a formal disaster declaration by FEMA, the IRS activated its tax relief measures for the affected areas.
Who Is Eligible for the Tax Relief?
The IRS tax relief applies to taxpayers who live or have a business in federally declared disaster areas in Mississippi. As of now, this includes residents in counties such as:
- Hinds
- Rankin
- Madison
- Warren
- Copiah
- Simpson
Note: This list may expand as damage assessments continue.
You are also eligible if you’re an out-of-state taxpayer but your tax records are stored in one of the affected counties, or if you’re a relief worker affiliated with a recognized organization operating in the disaster zone.
Key Tax Relief Measures Announced by the IRS
Here’s what the IRS relief package includes for impacted Mississippians:
Extended Tax Filing Deadlines
- New deadline: Taxpayers now have until August 15, 2025, to file individual and business returns and make payments that were originally due between March 24 and August 14, 2025.
- This includes:
- 2024 individual income tax returns (originally due April 15)
- Quarterly estimated tax payments (April and June)
- Payroll and excise tax filings for businesses
- Contributions to IRAs and HSAs
Penalty Relief
- The IRS will automatically waive late-filing and late-payment penalties for eligible taxpayers during the relief window.
- Taxpayers do not need to contact the IRS—these benefits will be applied automatically based on address records.
Claiming Disaster Losses
- Taxpayers can opt to claim disaster-related losses on their 2024 or 2025 tax return.
- Doing this may result in a larger refund or reduced tax liability, depending on your circumstances.
How to Claim Disaster-Related Tax Benefits
If you are eligible, here’s what to do:
1. File Using FEMA Disaster Number
Include the FEMA disaster declaration number—Mississippi Severe Storms and Tornadoes (DR-4781-MS)—on any paper or electronic tax form when claiming disaster losses.
2. Keep Documentation
Save records of damage, insurance payouts, repair expenses, and any disaster-related correspondence. These documents are essential if you later need to verify your claims.
3. Amend Past Returns
If claiming losses on a previous year’s tax return (like 2024), you can file an amended return (Form 1040-X) to get your refund sooner.
What If You Receive a Late Notice?
If you live in the declared disaster area but receive a penalty or late notice for a filing or payment due during the relief period, contact the IRS at the number on the notice. Explain your situation and reference the disaster declaration, and the penalty should be waived.
Helpful Resources
For more information, visit:
- IRS Disaster Relief Page
- FEMA Disaster Assistance
- Mississippi Department of Revenue (for state tax relief updates)
The IRS’s tax relief announcement is a critical step in helping Mississippians recover financially after the devastating storms of March 2025. If you or someone you know has been impacted, don’t wait—review your tax situation and take advantage of these extensions and deductions while they’re available.
Stay safe, stay informed, and don’t hesitate to seek assistance—whether from the IRS, a tax professional, or FEMA relief services.