On Wednesday, Sept. 2, the Internal Revenue Service (IRS) announced tax relief for individuals and businesses in Indiana affected by severe storms, straight-line winds, tornadoes, and flooding that began on Aug. 11. These taxpayers now have until Feb. 1, 2027, to file various federal individual and business tax returns and make tax payments.
Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in Carroll, Dearborn, Decatur, Delaware, Fayette, Franklin, Hamilton, Hancock, Henry, Lake, LaPorte, Madison, Marion, Morgan, Porter, Pulaski, Randolph, Rush, Tipton, Union, and Wayne counties qualify for tax relief.
The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 11, 2026, and before Feb. 1, 2027, are granted additional time to file.
As a result, affected individuals and businesses will have until Feb. 1, 2027, to file returns and pay any taxes that were originally due during this period.
The Feb. 1, 2027, deadline applies to individuals who had a valid extension to file their 2025 individual income tax return. Because tax payments related to these 2025 returns were due on April 15, 2026, those payments are not eligible for this relief.
Penalties on payroll and excise tax deposits due on or after Aug. 11, 2026, and before Aug. 26, 2026, will be abated as long as the tax deposits were made by Aug. 26, 2026.
The Feb. 1, 2027, deadline also applies to affected quarterly payroll and certain excise tax returns normally due on Nov. 2, 2026.
If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
The IRS automatically identifies taxpayers located in the covered disaster area and applies filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area should call the IRS Special Services toll-free number at (866) 562-5227 to request this tax relief.
Tax practitioners in the covered disaster area who maintain records necessary to meet a filing or payment deadline for taxpayers located outside the disaster area may contact the IRS Special Services; if the practitioner maintains the necessary records of 10 or more clients, please refer to bulk requests from practitioners for disaster relief for additional guidance.
Under the recently enacted Public Law 119-64, Disaster Related Extension of Deadlines Act, the postponement of a federal tax return deadline due to a federally declared disaster is treated as an extension for purposes of calculating the limit on a tax refund, giving affected taxpayers additional time to claim a refund or credit.
You can find more details at this link.
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