May 1st Extended Deadline
Many individuals and businesses across Washington State have been affected by the severe storms, flooding and related disasters that began on December 9, 2025. If you or your family have been affected, we hope you are safe and have the support you need during this difficult time. To help reduce some of the resulting administrative and financial strain, the IRS has announced significant federal tax relief for taxpayers in designated disaster areas. Below is a summary of the most important updates and how they may apply to you.
Please review the following important updates:
Extended Tax Deadlines
- The deadline to file federal individual and business tax returns and make payments normally due on or after December 9, 2025, is now extended to May 1, 2026.
- This extension also applies to 2025 contributions to IRAs and Health Savings Accounts (HSAs) for eligible taxpayers.
- Estimated tax payments normally due on January 15, 2026, and April 15, 2026, are also postponed to May 1, 2026.
- Penalties on payroll and excise tax deposits due on or after December 9, 2025, and before December 29, 2025, will be abated if deposits are made by December 29, 2025.
- Quarterly payroll and certain excise tax returns normally due on January 31, 2026, and April 30, 2026, are also covered by the extension.
Who Qualifies?
- Individuals and businesses in the following counties: Benton, Chelan, Clallam, Grays Harbor, Jefferson, King, Kittitas, Lewis, Mason, Pierce, Samish, Skagit, Snohomish, Thurston, Wahkiakum, Whatcom, and Yakima.
- The IRS will automatically apply relief to taxpayers in these areas.
- If you are outside these counties but were affected (for example, your records are located in the disaster area), call the IRS Special Services at 866-562-5227 to request relief.
- This applies to most tax returns, including individual, corporate, partnership, S corporation and trust returns; estate, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations; and employment and certain excise tax returns, that have either an original or extended due date occurring before May 1, 2026.
Taxpayers Located Within the Covered Disaster Area
Automatic Relief:
- Taxpayers whose IRS address of record is within the covered disaster area are automatically identified by the IRS and granted the extended deadlines for filing and payment. No additional documentation or proof is required to receive this relief.
- The IRS uses the taxpayer’s address of record to apply the disaster indicator to the account, which triggers the relief.
If a taxpayer receives a late filing or payment penalty notice for a deadline that falls within the postponement period:
- The taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
Taxpayers Located Outside the Covered Disaster Area
Taxpayers not physically located in the disaster area may still qualify for relief if:
- Their tax records necessary to meet a filing or payment deadline are located in the covered disaster area (for example, with a tax preparer or at a business location in the disaster area).
- They are relief workers affiliated with a recognized government or philanthropic organization assisting in the disaster area.
- They are individuals visiting the disaster area who were killed or injured as a result of the disaster.
Additional Relief Details
- Affected taxpayers can claim disaster-related casualty losses on their 2025 federal income tax return. You have until October 15, 2026, to make this election.
- The IRS will waive fees for copies of previously filed tax returns for affected taxpayers. Use FEMA declaration number 3629-EM on your request.
- Qualified disaster relief payments are generally excluded from gross income.
- Special rules may apply for retirement plan and IRA distributions and repayments.
For more information or assistance, please contact our office. We are here to help you navigate these changes and ensure you receive all available relief.
Martha Hadaway, Tax Partner
