How to Request Tax Relief for Disaster-Affected Clients: A Guide for Tax Practitioners

 The IRS provides tax relief measures for individuals and businesses affected by federally declared disasters, extending deadlines for filing returns and making payments. Tax practitioners play a crucial role in securing these extensions for clients impacted by natural disasters. This guide details the specific steps practitioners should follow to request tax relief for clients in disaster area and on behalf of clients located outside of the disaster area when necessary records are held within the impacted area.

Tax Relief Deadlines for Affected Areas

The IRS grants tax relief for specific disasters, postponing deadlines for various filings and payments. For 2024, taxpayers in multiple states have received filing and payment extensions, with the new deadlines as follows:

• November 1, 2024 – For taxpayers in parts of Arkansas, Iowa, Kentucky, Mississippi, New Mexico, Oklahoma, Texas, and West Virginia.
• February 3, 2025 – For taxpayers in the entire states of Louisiana and Vermont, all of Puerto Rico and the Virgin Islands, and parts of Arizona, Connecticut, Illinois, Kentucky, Minnesota, Missouri, New York, Pennsylvania, South Dakota, Texas, and Washington.
• May 1, 2025 – For all of Alabama, Florida, Georgia, North Carolina, and South Carolina, as well as parts of Tennessee and Virginia.

In Florida, for example, affected taxpayers have specific relief measures in place due to Hurricane Milton, allowing for an extension on various tax deadlines until May 1, 2025, as follows:

• 2023 tax returns with valid extensions.
• 2024 tax returns for individuals and businesses due in March or April 2025.
• Quarterly estimated tax payments due on January 15 and April 15, 2025.
• Quarterly payroll and excise tax returns due on October 31, 2024, January 31, 2025, and April 30, 2025.

 Penalties for payroll and excise tax deposits due between October 5 and October 21, 2024, will be waived if the deposits are made by October 21, 2024.

 How to request relief: Steps for Practitioners to Request Tax Relief for Clients

If a tax practitioner is located within a covered disaster area and maintains records needed to meet a filing or payment deadline for clients who are outside the disaster area, they may contact the IRS to secure relief for these clients. Follow the procedure below:

Step 1: Contact the IRS to Identify Clients and Confirm Authorization

1. Call the IRS at 866-562-5227 to request relief for clients located outside the disaster area.
2. Authenticate Authorized Relationship: The IRS requires the practitioner to have a valid Power of Attorney (POA) on file to act on behalf of a taxpayer. The Centralized Authorization File must contain the POA before the relief is added to the client’s account.
3. Faxing the POA: If the POA is not on file, the practitioner may ask the IRS assistor if the POA can be faxed for immediate processing.

 Step 2: Bulk Relief Requests for Ten or More Clients

If the practitioner has necessary records for ten or more clients, they may submit a request using an electronic file. Follow these instructions:

1. Prepare an Excel Spreadsheet with the following information:

• Column A: List each client’s Taxpayer Identification Number (TIN) (either SSN or EIN). Ensure SSNs and EINs are listed separately or formatted with dashes for clarity.
• Column B: Enter the first four letters of the client’s last name or business name in uppercase letters. Do not use punctuation, additional words, or symbols. For trusts and estates, use the last name of the taxpayer.
• Mail the Electronic Media to the IRS at the following address:

Internal Revenue Service

Planning & Analysis Staff

4800 Buford Highway

Stop 96C

Chamblee, GA 30341

Ensure to include “Stop 96C” to expedite processing.

• Include a Cover Letter:
• The letter should request relief from penalties and/or interest for your clients.
• Include the practitioner’s name, address, and the disaster event (e.g., “Hurricane Milton”) that has impacted the clients.
• Attaching a copy of the IRS news release about the disaster may be helpful but is not required.

Relevance to Tax Practitioners

Tax practitioners should ensure that they have the necessary authorization to act on behalf of each client for whom they are requesting relief. For example, they should request form 2848 from the clients in order to call the IRS and request the tax relief. If 2848 is not available, the bulk procedures can be used. It is important to note that the relief can be requested up to the extended date, so this may provide relief to practitioners and taxpayers who were not able to timely file the applicable return.